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Hamilton Sundstrand selects Distributed Energy Systems to develop electrolysis cell stacks for submarine oxygen generation systems

Sep. 19, 2007
WINDSOR LOCKS, Conn. - Hamilton Sundstrand, a subsidiary of United Technologies Corporation (NYSE: UTX), has selected Distributed Energy Systems' (NASDAQ: DESC) hydrogen generation business to develop and supply electrolysis cell stacks that produce breathable oxygen within nuclear submarines. As a first step in this relationship, the parties have entered into a contract for cooperative development of a cell stack suitable for the next generation U.S. and British Navy submarines. The contract, which extends through fall of 2008, involves development work valued in excess of $1 million.

Distributed Energy Systems' cell stacks will enable the water electrolysis-based oxygen generation systems to split water into its hydrogen and oxygen elements. Once these new cell stacks are successfully developed, Hamilton Sundstrand anticipates Distributed Energy Systems will supply production versions to Hamilton Sundstrand for use in new nuclear submarine programs for which Hamilton Sundstrand oxygen generating systems may be selected.

Hamilton Sundstrand Space, Land & Sea, a business unit of Hamilton Sundstrand, designs and manufactures oxygen generating systems, atmosphere monitoring instruments, and propulsion systems for the U.S. Navy and international navies. This undersea expertise complements its extensive space heritage in space suits, life support, power management and distribution, actuation, and thermal management systems provided to NASA and their international partners for human and launch systems since the Apollo era.

"We selected Distributed Energy Systems as our supplier for this key military equipment as a result of their advanced technical capability in electrolysis, their manufacturing expertise and the proven reliability of their equipment," said Larry McNamara, director of Strategy and Development for Hamilton Sundstrand Space, Land & Sea. "We believe this relationship will provide a long term benefit for Hamilton Sundstrand’s advanced life support systems and technologies for our Navy customers."

Distributed Energy Systems has an 11-year track record of developing, producing and marketing electrolysis systems for the on-site production of hydrogen in commercial, industrial and research applications. Capabilities include high and low pressure oxygen and hydrogen, with the elements produced by the cell stacks usable either in a process, in the gaseous form, or as a source of energy.

"Continuing to work with Hamilton Sundstrand on this important defense industry project is a vote of confidence in our technology and the people who have developed and continue to refine it," said Robert Friedland, senior vice president of Distributed Energy Systems and head of its hydrogen business. "Moving forward with this program, we expect to achieve long-term benefits for our nation's defense, as well as for our company and Hamilton Sundstrand."

With 2006 revenues of $5 billion, Hamilton Sundstrand employs approximately 18,000 people worldwide and is headquartered in Windsor Locks, Conn., Among the world's largest suppliers of technologically advanced aerospace and industrial products, the company designs, manufactures and services aerospace systems and provides integrated system solutions for commercial, regional, corporate and military aircraft. It also is a major supplier for international space programs. United Technologies provides a broad range of high-technology products and support services to the aerospace and building systems industries.

Distributed Energy Systems Corp. designs, develops, and manufactures proton exchange membrane (PEM) electrochemical products that meet a variety of market needs for hydrogen generation and advanced energy storage applications. Distributed Energy Systems' HOGEN® hydrogen generators produce hydrogen from electricity and water in a clean and efficient process using its proprietary PEM technology. Markets served by this technology include industrial hydrogen, vehicle fueling, backup power, military and aerospace, and renewable energy storage. For more information, visit http://www.distributed-energy.com.

This release includes "forward looking statements" concerning expected revenue and other matters that are subject to risks and uncertainties. Important factors that could cause actual results to differ materially from those anticipated or implied in forward looking statements include the health of the global economy and the strength of end market demand in the aerospace industry; and company specific items including the ability to achieve cost reductions at planned levels; challenges in the design, development, production and support of advanced technologies, and new products; government procurement decisions and delays and disruption in delivery of materials and services from suppliers. For information identifying other important economic, political, regulatory, legal, technological, competitive and other uncertainties, see UTC's SEC filings as submitted from time to time, including but not limited to, the information included in UTC's 10-K and 10-Q Reports under the headings "Business," "Risk Factors," "Management's Discussion and Analysis of Financial Condition and Results of Operations" and "Cautionary Note Concerning Factors that May Affect Future Results," as well as the information included in UTC's Current Reports on Form 8-K.

Contact:
Dan Coulom
860-654-3469

www.hamiltonsundstrand.com



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