Prior to publication, the information contained within this announcement was deemed by the Company to constitute inside information, as stipulated under the UK Market Abuse Regulation. With the publication of this announcement, this information is now considered to be in the public domain.

24 October 2022

Proton Motor Power Systems plc

("Proton Motor" or the "Company")

New production facility to significantly expand manufacturing capability

Proton Motor Power Systems plc (AIM: PPS), a leading designer, developer and producer of fuel cells and fuel cell electric hybrid engines with a zero-carbon footprint, announces that it has signed a fifteen-year lease agreement for a modern 13,500m² facility (the "Facility") that will be used to substantially expand the Company's manufacturing, testing and development capacity.

Proton Motor has been developing its fuel cell technology since 1998 to be probably one of the leading fuel cells in industrial, long-lifetime markets. There is an increased political awareness that hydrogen and fuel cells will play a fundamental role to overcome the climate energy crisis and this is expected to lead to an increased demand for fuel cells. In anticipation of this increased demand for the Company's products, Proton Motor intends to increase its annual production capacity to 5,000 fuel cell hydrogen engines and up to 30,000 fuel cell stacks.

The Facility will supplement the Company's current 6,000m² site in Puchheim, Germany, which will now become the development facility for stacks and hydrogen engines. The new Facility is located in the town of Fürstenfeldbruck, located c. 12km from Puchheim and is contained within the Munich metropolitan region. The Facility will be used for serial manufacturing and will also be the location of the Company's sales and marketing teams, as well as the maintenance and training centre.

The total land surface of the Facility is 25,700m² and it contains over 13,500m² of useable space, of which over 10,500m² can be dedicated to production, testing and development. The remainder of the space will be devoted to office usage. This represents a seven-fold increase in the amount of space available for production when compared to the Company´s current premises.

Concurrently with the enhancement of production capacity, the Directors of Proton Power have determined that the Company will be enlarging the sales department in order to meet the anticipated increase in demand.

Dr. Faiz Nahab, Chief Executive Officer of Proton Motor, stated: "Hydrogen is the energy storage source of the future and awareness of this is increasing to a considerable extent both amongst the public and within industry. This creates a strong market-pull for associated technologies such as fuel cells. This is evidenced by discussions with existing customers for midterm batch orders. With this background, the additional space provided by the new Facility will give Proton Motor the required capacity to produce, test and deliver fuel cell hydrogen engines in line with this anticipated growing demand."

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About Proton Motor Fuel Cell GmbH

Proton Motor has more than 20 years of experience in Power Solutions using CleanTech technologies such as hydrogen fuel cells, fuel cell and hybrid hydrogen engines with a zero carbon footprint.  Based in Puchheim near Munich, Proton Motor offers complete fuel cell and hybrid hydrogen engines  from a single source - from the development and production through the implementation of customized solutions.  The focus of Proton Motor is on back-to-base, for example, for mobile, marine and stationary solutions applications.  The product portfolio consists of base-fuel cell hydrogen engines, standard complete hydrogen engines, as well as customized hydrogen engines .

Proton Motor serves IT, Telecoms, public infrastructure and healthcare customers in Germany, Europe and Middle East with power supply solutions for DC and AC power demand.

Proton Motor Fuel Cell GmbH is a wholly owned subsidiary of Proton Motor Power Systems plc. The Company has been quoted on the AIM market of the London Stock Exchange since October 2006 (code: PPS).