McPhy Energy Signs Contract With Enel Group for Solid Hydrogen Storage

GRENOBLE, France, February 7, 2011 - McPhy Energy, a leader in solid hydrogen storage technology,
has announced that the company has signed a contract with the Enel Group,
Italy's largest power company and Europe's second listed utility by installed
capacity, for the supply of a solid hydrogen storage solution. The system has
a capacity of 2 kilograms of solid hydrogen, stored in the form of magnesium
hydrides (which do not require compression), offering an innovative solution
for safe, reversible hydrogen storage, with excellent energy efficiency.

A prototype of the system design was validated through a
series of tests at the CEA-LITEN (the French national Laboratory of
Innovation for New Energy Technologies and Nanomaterials in Grenoble,
France). The test tank was coupled to an electrolyser and to a fuel cell,
successfully demonstrating the storage of renewable energy.

Enel will integrate McPhy's solution in a full, innovative
technology framework, which includes wind and solar technologies, as well as
hydrogen production and storage. McPhy's storage system will be located at
Enel's research center in Livorno. The project will be led by a group of
researchers from the Enel Research Center of Pisa.

Enel's interest in hydrogen and the technology developed by
McPhy Energy confirms McPhy's strategy of developing industrial energy
storage applications in collaboration with the industry's major players.

"With this order, McPhy has achieved the first milestone in
our business development plan," says Pascal Mauberger, CEO of McPhy Energy.
"Enel's confidence in our innovative energy storage technology enables us to
look to the next phase of large-scale deployment on the grid."

About McPhy Energy

McPhy Energy was created in 2008, with the mission to
industrialize and commercialize an innovative solid hydrogen storage
technology using magnesium hydrides, which offers unique advantages compared
to other hydrogen storage solutions. The technology addresses the merchant
hydrogen and renewable energy markets. McPhy owns exclusive rights on a
portfolio of unique patents, which results from over 8 years of research at
the CNRS and CEA, in partnership with Joseph Fourier University. A member of
the TENERRDIS cluster, McPhy Energy is involved as a partner or a
subcontractor in several research projects. For further information, see
www.mcphy.com.

Press Contact - Christine Duchene - duchene.rp at free.fr, Tel. (+33)(0)1-48-75-47-97 - Mobile (+33)(0)6-73-82-52-00