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ISE Corporation to Install Hybrid System into NMC-Wollard Tow Tractor Powered with Lynntech Fuel Cell

SAN DIEGO, CA, September 7, 2004 — Under the subcontract agreement, ISE will supply a fully integrated hybrid-electric drive vehicle - minus the main power source - to Lynntech, which will then install their fuel cell system. Lynntech Inc.'s patented bipolar proton exchange membrane (PEM) fuel cell technology is ideally suited for high efficiency and power generation for the vehicle. The ISE hybrid system will be a variant of the ThunderVolt hybrid system commercialized by ISE for large transit buses and other heavy-duty vehicles. According to Dr. Jeremy Steinshnider, Chief Research Scientist at Lynntech, "Lynntech is delighted to work with ISE and couple our latest fuel cell system with their hybrid-electric drive system to demonstrate the advantages of hybrid fuel cell drive systems to our customer, the US Air Force."

Hybrid-electric drive technology is now being accepted as "bridging technology" between present-day combustion engines and fuel cell vehicles. Fuel cell manufacturers are recognizing hybrids as the best way to introduce fuel cell technology for transportation needs. "Hybrid drive systems with energy storage such as batteries and ultracapacitors can be used to reduce peak fuel cell power to 50-60% of that required in non-hybrid systems," said David Mazaika, ISE President. "Hybrid drive systems enabling the use of smaller fuel cells will greatly reduce their cost, thereby accelerating commercialization of these systems."

This agreement fortifies ISE's leadership position in the integration of fuel cells into heavy-duty vehicles. Lynntech will be the third fuel cell manufacturer to use ISE's hybrid-electric drive technology to enhance the performance of its fuel cells in heavy-duty vehicles, along with UTC Power and Hydrogenics. ISE is currently producing four fuel cell buses for AC Transit of Oakland, CA and for SunLine Transit of Palm Desert. The company is also developing a Hydrogen Hybrid Internal Combustion Engine drive system for transit bus and truck applications.

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