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Distributed Energy Systems Corp. was created in December 2003 following an affirmative vote by shareholders and ratification by the boards of directors for both Proton Energy Systems and Northern Power Systems. Acting as holding company for the Proton and Northern operating companies and subsequent entities, Distributed Energy Systems is the market vehicle (NASDAQ: DESC) for investors, superseding Proton Energy Systems (formerly traded on the NASDAQ under the symbol PRTN). Homepage: distributed-energy.com May 5, 2004 Earnings Release phx.corporate-ir.net First Quarter Highlights: * Announced the successful installation of Proton's first HOGEN(R) H Series onsite hydrogen generator along with the receipt of the first two commercial orders. * Announced the achievement of several key milestones for Proton's HOGEN hydrogen generator line. Specifically, Proton logged more than four million cell hours on approximately 350 installed units in the field in 2003 and reduced the overall cost of the Proton Exchange Membrane, or PEM, electrolysis cell stack by 20 percent over the previous year. * Announced the presentation of a Department of Energy grant by Vermont Senator James Jeffords for Northern Power worth approximately $600,000 for the development of a MicroGrid power network. * Delivered 12 HOGEN 40 series hydrogen generators and 18 laboratory generators by Proton. Revenue recognition is being deferred until warranty expiration. * Strengthened the intellectual property position by bringing the total U.S. and foreign patent filings to 116. Distributed Energy and its subsidiaries now hold 26 issued U.S. patents and three issued European patents. Subsequent Events: * Announced the selection of Northern Power to negotiate on an $8.3 million contract with the National Renewable Energy Laboratory to develop an advanced, direct-drive wind turbine for low-wind speed sites. * Announced Proton's intention to provide hydrogen generation and fueling technologies as key infrastructure components for California's new "Hydrogen Highway" and renewable energy economy. * Announced Proton's selection as a member of the Air Products team that will participate in DOE's hydrogen infrastructure demonstration and validation project. * Announced Proton's award of a Phase II contract to continue development on its regenerative solar/PEM fuel cell demonstration system for the Naval Air Warfare Center Weapons Division at China Lake, California. | ||||||||||||||
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