Development Collaboration

    Embargoed Release: 07:00hrs Thursday 25th January 2007

                              CMR Fuel Cells plc                               

                           (`CMR' or the `Company')                            

                    Research and Development Collaboration                     

CMR Fuel Cells Plc, the Cambridge based compact fuel cell stack specialist, is
pleased to announce that it has entered into a non-exclusive collaboration with
inkjet printing specialist, Xaar plc ('Xaar') and international chemicals
group, Solvay SA ('Solvay') to jointly develop a single-step production process
for the mass-manufacture of entire fuel cell stacks based around CMR's unique
and patented fuel cell architecture.

The collaboration, which brings together leading organisations and associated
research and development capabilities, has been initiated in order to develop
printing techniques and know-how with a view to developing a single-step
production process for the manufacture of fuel cell stacks. A single-step
production process would yield significant gains in cost reduction, size
reduction and increased reliability.

Xaar plc is listed on the London Stock Exchange and is the leading supplier of
industrial inkjet printheads, inks and peripheral equipment to commercial
printing and industrial manufacturing markets.

Solvay SA is an International Pharmaceutical and Chemicals Group listed on the
Euronext Stock Exchange and has annual sales of over Euro8.6billion, employs
30,000 people in 50 countries and has spent in excess of Euro1.1billion on
Research and Development in the past two years.

The collaboration will combine CMR's revolutionary fuel cell architecture with
Xaar's leading inkjet printing and Solvay's advanced polymer materials to
develop techniques that could lead to the production of inkjet printed,
multi-cell fuel cell stacks.

This approach is made possible by CMR's 'mixed reactant flow-through' fuel cell
architecture and aims to eliminate the costs associated with the current high
precision, low yield multi-stage assembly - comprising a high number of
component pieces - found in traditional fuel cells. CMR aims to pioneer
advances in high-volume fabrication technology to exploit the tremendous
potential offered by mass production of fuel cells capable of delivering the
high-power densities required to enable next-generation portable applications
for the worldwide consumer electronics industry.

John Halfpenny, CEO, CMR Fuel Cells plc, comments:

"We are delighted to be working with Xaar and Solvay - both leaders in their
fields. This collaboration opens up the possibility of realising improvements
to the cost effectiveness, size and reliability of our fuel cell stacks - all
of which are crucially important to our partners seeking portable power
solutions for the consumer electronics industry"

                                     -End-                                     

Further Information

John Halfpenny             CMR Fuel Cells plc         01223 875 544            
                                                                               
CEO                                                                            
                                                                               
Andrew Tan                 Hansard Group              020 7245 1100            
                                                                               
www.hansardgroup.co.uk                                                         

About CMR Fuel Cells plc:

CMR Fuel Cells plc is a UK developer of fuel cell stacks for portable and small
stationary power generation applications. The Company plans to become a leading
supplier of fuel cell products, based on its simple but revolutionary patented
stack architecture which delivers longer run-time and lower costs than
conventional fuel cell stacks.

As documented at the time of the Company's flotation, CMR's unique architecture
can be applied in a range of fuel cell applications including portable
electronics, combined heat and power and automotive to deliver significant
improvements in power density performances using a range of chemistries.
However, it is the intention of the Board to initially commercialise the
Company's technology within the consumer electronics industry where there is
sustained and growing demand for smaller, cheaper, longer running power
solutions for portable electronics devices based on direct methanol fuel cells.
This demand is being driven by the increasing power requirements of portable
electronics devices which have outgrown incremental improvements in the
performances of traditional battery chemistries. As a result, consumer
frustration with short 'run times' is compelling the electronics industry to
develop and deploy suitable alternatives for power delivery. It is widely
accepted that direct methanol fuel cells represent an ideal solution to the
power requirements of portable devices and are also capable of eliminating the
need to recharge devices by having an interchangeable fuel cartridge system
equivalent of instant recharging.



END