McPhy Energy Pioneers the Renewable Energy Storage Market on Solid State Hydrogen

The Company Delivers the First Magnesium Hydride Storage Tank to CEA Liten in Grenoble

GRENOBLE, France, April 19, 2010 - McPhy Energy, a leading company in solid state hydrogen storage
technology, has signed a research contract with CEA Liten (Laboratory of
Innovation for New Energy Technologies and Nanomaterials), one of the leading
European research centers dedicated to new energy technologies. The purpose
of this agreement is to manufacture two full size magnesium hydride storage
prototypes and to test them at industrial scale. During the test campaign,
they will be coupled to an electrolyser and a fuel cell simulating a
real-world renewable energy storage application.

The first storage tank with a hydrogen capacity of 1 kg, has been
delivered on March 29, 2010 to CEA Liten. Within this agreement a second
larger system (15 kg hydrogen) will be installed and tested during the second
half of 2010.

Such a system coupled to a hydrogen production device using renewable
energy will solve the intermittent nature of these new energy sources. The
targeted applications are electricity production in isolated sites, or peak
shaving of electrical networks, with an improved safety and no negative
environmental impact (no release of CO2 or wasted heat).

McPhy Energy develops, designs, manufactures and sells hydrogen storage
systems based on metal hydrides.

Magnesium hydride has been known for decades, but the very low kinetics
of the hydrogenation- dehydrogenation processes were roadblocks for their
industrial application. Thanks to a nanostructuration of the material and the
addition of proprietary additives developed by CNRS (Néel institute - CRETA -
LEGI), the systems commercialized by McPhy Energy can store at low pressure
large quantities of hydrogen within tens of minutes. The modular design of
the storage systems, initiated at CNRS, integrates a Phase Change Material
which enables loading and unloading with almost no energy losses.

The storage systems developed by McPhy Energy, are therefore totally safe
and provide an excellent energy yield. Compared to compressed gas storage,
they can store at atmospheric pressure as much hydrogen as a 500 bar storage
within the same volume. The systems developed by McPhy Energy meet the needs
of industrial customers for renewable energy storage applications based on
hydrogen energy technologies.

About McPHY Energy - www.mcphy.com

McPhy Energy is a young innovative company created in 2008 to
industrialize the patents developed by the CNRS labs ( Néel institute - CRETA
- LEGI) in Grenoble France. McPhy Energy owns a revolutionary process to
store hydrogen using magnesium hydrides. The company is managed by Pascal
Mauberger and supported by EMERTEC venture capital and AREVA. Member of the
TENERRDIS cluster, McPhy Energy is involved as a partner or a subcontractor
in several research projects.

Contact : Pascal Mauberger , CEO, pascal.mauberger at mcphy.com , Tel. +33-4-75-71-37-02 - Mob. +33-6-74-59-87-22 .