Tokyo Gas Evaluating FuelCell Energy's DFC(R) Products for Introduction to Customers of Its Energy and Industrial Gas Business Units

DANBURY, Conn.--(BUSINESS WIRE)--March 28, 2006--FuelCell Energy, Inc. (NasdaqNM:FCEL), a leading manufacturer of efficient, ultra-clean power generation plants for commercial and industrial customers, today announced that Tokyo Gas has initiated a program to evaluate a Direct FuelCell(R) (DFC(R)) power plant for introducing these units to customers of its energy and industrial gas divisions.

The unit is currently located at Kawasaki Heavy Industries' factory in Akashi, Japan, where Tokyo Gas will evaluate the power plant under a variety of expected operating conditions focusing particularly on grid interconnection performance. Tokyo Gas has agreed to install this DFC300A power plant at its new R&D center in Tsurumi in the second quarter of 2006.

Tokyo Gas is one of Japan's largest installers of natural gas-fueled distributed generation systems for high efficiency, combined heat and power applications. According to its Corporate Social Responsibility (CSR) Report, installation of natural gas cogeneration systems has grown to 1196 MW from 765 MW during the past five years, an increase of 44 percent. This trend is expected to continue in the years ahead (see http://www.tokyo-gas.co.jp/csr/report_e/index.html, page 22). Tokyo Gas is considering adding DFC products to its energy generation portfolio, pending the outcome of its evaluation, to address additions to the current 2.2 GW of gas-fired cogeneration at 2000 locations throughout the country.

"Tokyo Gas is the largest gas supplier in Japan," said R. Daniel Brdar, president and CEO of FuelCell Energy. "They are actively extending their pipelines to industrial gas users and expanding the country's infrastructure. Our ability to use this strategically important fuel source in high efficiency distributed generation for firm and reliable base load power applications represent a strong potential market for our megawatt-class products."

DFC power plants address two significant energy issues in Japan -- high energy costs and reduced greenhouse gas emissions under rules established by the Kyoto Protocols. The high efficiency of DFC power plants not only results in less fuel needed per kilowatt hour of electricity and lower operating costs, but reduced amounts of carbon dioxide. In addition, DFC power plants provide greater energy reliability because they are located directly at customer sites.

About FuelCell Energy

FuelCell Energy develops and markets ultra-clean power plants that generate electricity with higher efficiency than distributed generation plants of similar size and with virtually no air pollution. Fuel cells produce base load electricity giving commercial and industrial customers greater control over their power generation economics, reliability and emissions. Emerging state, federal and international regulations to reduce harmful greenhouse gas emissions consider fuel cell power plants in the same environmentally friendly category as wind and solar energy sources -- with the added advantages of running 24 hours a day and the capacity to be installed where wind turbines or solar panels often cannot. Headquartered in Danbury, Conn., FuelCell Energy services over 40 power plant sites around the globe that have generated more than 94 million kilowatt hours, and conducts R&D on next-generation fuel cell technologies to meet the world's ever-increasing demand for ultra-clean distributed energy. For more information on the company, its products and its worldwide commercial distribution alliances, please see www.fuelcellenergy.com.

Direct FuelCell, DFC and DFC/Turbine are registered trademarks of FuelCell Energy, Inc. All other trademarks are the property of their respective owners. The Company's sub-megawatt DFC fuel cell power plant is a collaborative effort combining its Direct FuelCell technology with a Hot Module(R) balance of plant design from MTU CFC Solutions, GmbH.

This news release contains forward-looking statements, including statements regarding the Company's plans and expectations regarding the development and commercialization of its fuel cell technology. All forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected. Factors that could cause such a difference include, without limitation, the risk that commercial field trials of the Company's products will not occur when anticipated, general risks associated with product development, manufacturing, changes in the utility regulatory environment, potential volatility of energy prices, rapid technological change, and competition, as well as other risks set forth in the Company's filings with the Securities and Exchange Commission. The forward-looking statements contained herein speak only as of the date of this press release. The Company expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any such statement to reflect any change in the Company's expectations or any change in events, conditions or circumstances on which any such statement is based.

CONTACT: FuelCell Energy
Steven P. Eschbach, 203-825-6000
seschbach@fce.com