Strategic Update

 

TIDMPTX TIDMPTXU 
 
RNS Number : 9322J 
Protonex Technology Corporation 
09 April 2010 
 

 
 
 
 
FOR IMMEDIATE RELEASE 
 
 
April 9, 2010 
 
 
                                STRATEGIC update 
 
DATELINE: SOUTHBOROUGH, MA; Protonex Technology Corporation, ("Protonex" or "the 
Company"), (LSE AIM: PTX and PTXU), a leading provider of advanced fuel cell 
systems, today announces that it will be concentrating more of its product 
development and marketing resources on its promising propane-fueled P125-B 
system which will target recreational vehicle ("RV") and other consumer markets. 
 As a result, the Company has decided not to proceed with the spring launch of 
its methanol-fueled M250-B product into the recreational vehicle market.  The 
Company will continue to test market the M250-B into several other commercial 
and industrial applications including backup and remote power. 
The following factors have contributed to this decision: 
  *  The Company's solid oxide (SOFC) platform has made very strong technical 
  progress in the last two quarters. Fully functional P125 units are operational, 
  early tests have been very encouraging, and the Company is embarking on the 
  final product design turn before launch. 
  *  Market research by Protonex with strategic partners, industry-leading OEMs, 
  customers, and beta test sites has indicated a strong preference toward propane 
  fuel for many consumer applications.  Propane is widely available, relatively 
  inexpensive and integrated into many vehicles and locations. 
  *  The Company is keen to focus resources on fulfilling a recently-awarded $3.3 
  million contract from the US Department of Defense for the refinement and 
  production of its methanol-fueled M250-CX product. The military prefers methanol 
  over propane for battlefield safety considerations. 
  *  The shift to the P125-B system has allowed the Company to reduce overall 
  headcount, operating costs, and cash burn by consolidating its product 
  development efforts.  Consequently, the Company's annualised operating expense 
  is expected to reduce by approximately $2.4 million. 
 
 
Protonex expects to begin placing "beta" P125-B units with customers and 
strategic OEM partners by November of this year and is targeting a full product 
launch in Q1 2011, several months ahead of the start of the RV season. 
Derivative products on the P125-B (higher power, alternative configurations) are 
expected to follow later in 2011 and beyond. 
 
Commenting on the news, Scott Pearson, President and Chief Executive at Protonex 
said: 
"Protonex is fortunate to possess a set of platforms that can operate on a wide 
range of fuels and provide our customers with highly-optimisedsolutions.  We are 
now fully committed to what we see as one of our most promising opportunities - 
propane-fueled SOFC power solutions for the consumer markets.  We have been 
working toward this opportunity since purchasing Mesoscopic Devices and its SOFC 
technology in 2007". 
 
 
 
                                    - ENDS - 
 
Enquiries 
Protonex Technology Corporation                                           Tel: 
[phone] 
Scott Pearson, Chief Executive Officer 
John Connolly, Chief Financial Officer 
 
Redleaf Communications Limited                                           Tel: 
[phone] 
Press and Investor Relations 
  [e-mail] 
Paul Dulieu 
 
Piper Jaffray Ltd.  Tel: [phone] 
Nominated Adviser 
Jens Rosebrock 
Rupert Winckler 
 
 
Notes to Editors 
 
About Protonex Technology Corporation 
www.protonex.com 
Protonex Technology Corporation develops and manufactures compact, lightweight 
and high- performance fuel cell systems for portable power applications in the 
100 to 1000-watt range. The Company's fuel cell systems are designed to meet the 
needs of military, commercial and consumer customers for off-grid applications 
underserved by existing technologies by providing customizable, stand-alone 
portable power solutions and systems that may be hybridized with existing power 
technologies. The Company is headquartered in Southborough, Massachusetts. 
 
 
This announcement includes statements which are, or may be deemed to be, 
"forward-looking statements". All statements other than statements of historical 
facts included in this announcement, including, without limitation, those 
regarding Protonex' financial position, business strategy, plans and objectives 
of management for future operations (including development plans and objectives 
relating to Protonex' products and services) are forward-looking statements. By 
their nature, such forward-looking statements involve known and unknown risks, 
uncertainties and other important factors that could cause the actual results, 
performance or achievements of Protonex to be materially different from future 
results, performance or achievements expressed or implied by such 
forward-looking statements. These factors include but are not limited to those 
described in the Admission Document issued in connection with the Company's 
admission to AIM. 
 
Forward-looking statements may and often do differ materially from actual 
results.  Any forward-looking statements in this announcement speak only as at 
the date of this announcement and are subject to risks relating to future events 
and other risks, uncertainties and assumptions relation to Protonex' operations, 
results of operations, growth strategy and liquidity. 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
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