FuelCell Energy and Marubeni Corp. Extend Agreement to Address Expansion of Asian Markets

FuelCell Energy, Inc. (NasdaqNM:FCEL), a leading manufacturer ofultra-clean, efficient electric power plants for commercial andindustrial customers, today announced it has extended the distributionagreement with its Asian partner, Marubeni Corp. (TSE: 8002), to sellDFC products in Japan. Terms of the revised agreement include acommitment by Marubeni to order 6 megawatts (MW) of DFC power plantsand a cash down payment related to the commitment. In exchange,FuelCell Energy agreed to extend Marubeni's exclusivity to sell DFCproducts in Japan.

"With the number of DFC power plants in Japan and Koreaincreasing, commercial and industrial customers in Asia arerecognizing that Direct FuelCell power plants can provide firm,reliable power generation while reducing energy costs and greenhousegases," said Kenji Natori General Manager of Marubeni's New Technology& Renewable Energy Department. "With the highest electrical efficiencyof any power generation technology in their size range, DFC powerplants provide customers with greater control of their energy usagewhile reducing harmful emissions."

Today's announcement supports FuelCell Energy's long-standingstrategy for addressing the growing market opportunities of sellingDFC power plants in Japan. Initially, FuelCell Energy will add severallocal personnel for sales and servicing, supporting Marubeni'srecently increased sales staff of its Fuel Cell Japan subsidiaryformed last year. In addition, the two companies will continue theirefforts towards the formation of a joint venture for the packaging ofDFC power plants in Japan. Moving more of the assembly of DFC powerplants to Japan and incorporating balance of plant components fromlocal vendors is expected to reduce product cost to be morecompetitive.

"Marubeni's commitment clearly demonstrates that the marketdrivers for our high efficiency and ultra-clean DFC products in theAsian market are strengthening," said R. Daniel Brdar, President andCEO of FuelCell Energy, Inc. "Commercial and industrial companies inAsia are demanding high efficiency and reliable onsite powergeneration such as our ultra-clean power plants to help them reducetheir power costs while complying with the mandates of the KyotoProtocol."

Japan represents a significant market where FuelCell Energy's DFCproducts can provide commercial and industrial customers with reliableand cost-effective base load power. Japan's electricity prices areamong the highest in the world. As of 2002, emissions of carbondioxide per unit of Gross Domestic Product in Japan were the lowestamong the world's mature market economies, and it is projecting anadditional 1.4 percent reduction by 2025. To achieve this, and tosupport the country's drive towards achieving its Kyoto Protocolcommitments, Japan enacted a national Renewable Portfolio Standardsprogram in 2003, targeting 3,500 megawatts of power generation fromrenewable fuels by 2010. In fiscal year 2005 alone, Japan allocatedover $500 million to promote the adoption of high efficiency newenergy technologies at customer sites throughout the country. Inaddition Japan recently established the "Biomass Nippon" program,which allocated $282 million in fiscal year 2005 to fund research andcommercial adoption of energy generation by renewable fuels such asdigester gas from wastewater treatment plants. Bio gas is expected tobe a sustainable growth market for distributed power generation,including DFC products.

DFC products address two significant energy issues in Japan:coping with high energy costs and meeting the country's commitments toreduce emissions of the major greenhouse gas, carbon dioxide. Comparedto the average U.S. fossil fueled power plant, high efficiency DFCproducts use less fuel per kilowatt hour of electricity to trimoperating costs, while significantly reducing carbon dioxide. Inaddition, because DFC units generate heat and power electrochemically-- without combustion -- emissions of harmful pollutants such asnitrogen oxides, sulfur oxides and particulate matter aresignificantly diminished.

Marubeni's cash down payment for the 6 MW commitment reservesinventory and placement in FuelCell Energy's recently expandedmanufacturing schedule. DFC power plants will be released forproduction and included in commercial product backlog when sales tospecific customers are finalized.

About Marubeni

The Marubeni Corporation(http://www.marubeni.co.jp/english/index.html), established in 1858,is one of Japan's leading general trading/marketing houses (sogoshosha). The company was ranked as the 25th largest in FortuneMagazine's Global Fortune 500 list for 2002. Marubeni has 12 Divisionswith operations that encompass domestic, import/export, offshore tradeand investment activities, which range from the development of naturalresources to the retail marketing of finished products. The Company,based in Tokyo, conducts these operations through a worldwide businessnetwork that includes 52 overseas corporate offices and 28 overseassubsidiaries, for a total of 131 offices in 73 countries.

Marubeni's Power Projects Division has been involved in thedevelopment of over 20,000 megawatts of power generation worldwide.The Division has expanded its efforts to include distributedgeneration technologies, power quality & reliability technologies andenergy & environmental services.

About FuelCell Energy

FuelCell Energy Inc. develops and markets ultra-clean power plantsthat generate electricity with higher efficiency than distributedgeneration plants of similar size and with virtually no air pollution.Fuel cells produce base load electricity giving commercial andindustrial customers greater control over their power generationeconomics, reliability and emissions. Emerging state, federal andinternational regulations to reduce harmful greenhouse gas emissionsconsider fuel cell power plants in the same environmentally friendlycategory as wind and solar energy sources -- with the added advantagesof running 24 hours a day and the capacity to be installed where windturbines or solar panels often cannot. Headquartered in Danbury,Conn., FuelCell Energy services over 40 power generation sites aroundthe globe that have produced more than 94 million kilowatt hours, andconducts R&D on next-generation fuel cell technologies to meet theworld's ever-increasing demand for ultra-clean distributed energy. Formore information on the company, its products and its worldwidecommercial distribution alliances, please see www.fuelcellenergy.com.

Direct FuelCell, DFC and DFC/Turbine are registered trademarks ofFuelCell Energy, Inc. All other trademarks are the property of theirrespective owners. The Company's sub-megawatt DFC fuel cell powerplant is a collaborative effort combining its Direct FuelCelltechnology with a Hot Module(R) balance of plant design from MTU CFCSolutions, GmbH.

This news release contains forward-looking statements, includingstatements regarding the Company's plans and expectations regardingthe development and commercialization of its fuel cell technology. Allforward-looking statements are subject to risks and uncertainties thatcould cause actual results to differ materially from those projected.Factors that could cause such a difference include, withoutlimitation, the risk that commercial field trials of the Company'sproducts will not occur when anticipated, general risks associatedwith product development, manufacturing, changes in the utilityregulatory environment, potential volatility of energy prices, rapidtechnological change, and competition, as well as other risks setforth in the Company's filings with the Securities and ExchangeCommission. The forward-looking statements contained herein speak onlyas of the date of this press release. The Company expressly disclaimsany obligation or undertaking to release publicly any updates orrevisions to any such statement to reflect any change in the Company'sexpectations or any change in events, conditions or circumstances onwhich any such statement is based.