HYDROGENICS PROJECTS

After much deliberation, Hydrogenics and Prince Edward Island Energy Corporation have jointly determined to terminate their collaboration on the Prince Edward Island Wind Hydrogen Village project, as announced in April 2005. Subsequent to the announcement, funding formula issues came to light due to a private sector funding shortfall. Best efforts, including an attempt to access new private funding, were not successful in remedying the situation. With due consideration to their respective investors and taxpaying public, both Hydrogenics and PEI Energy Corp have agreed that terminating this project under the current arrangement is the prudent thing to do.