Announcements

Eaton and Altergy Collaborate to Provide Fuel Cell Power Solutions to Telecommunications and Other Industries, Worldwide

FOLSOM, California – September 7, 2006 – Fuel cell manufacturer Altergy Systems announced today that it has signed two agreements with diversified industrial manufacturer Eaton Corporation (NYSE:ETN), creating a global collaboration to provide fuel cell power solutions for telecommunications and other premium power and mission-critical applications.

Through this collaboration, Altergy’s advanced, low cost fuel cell engines will be integrated with Eaton Electrical’s electrical control and power distribution products, to create complete stationary fuel cell systems. Additionally, Eaton will install, commission, start up, monitor and service Altergy fuel cell products and systems at customer sites worldwide through Eaton’s network of over 1,000 service professionals.

Remarked Eric Mettler, president and CEO, Altergy Systems, “This agreement with Eaton is a significant milestone in Altergy’s quest to change the way the world gets its power. It allows us to concentrate on manufacturing our low cost, rugged fuel cell engines while at the same time providing fully integrated backup power systems to our telecom customers as well as to Eaton’s customers worldwide. We also gain the enormous benefit of Eaton’s extensive, worldwide service network.”

“This integrated solution will give our customers the high level of power reliability with the long runtime and low maintenance requirements they desire,” commented Randy Carson, president, Eaton’s electrical business . He continued, “This allows Eaton to broaden our telecom, backup and primary power product offerings, and to optimize the use of our extensive service capacity. We are excited to team with Altergy.”

In the electrical industry, Eaton is a global leader in electrical control, power distribution, and industrial automation products and services. Through advanced product development, world class manufacturing methods and global engineering services and support, Eaton provides customer-driven solutions under many brand names including Eaton®, Cutler-Hammer®, Powerware®, Durant®, Heinemann®, Holec®, and MEM®, which globally serve the changing needs of the telecommunications, industrial, utility, light commercial, residential, and OEM markets. For more information, visit http://www.eatonelectrical.com.

Eaton Corporation is a diversified industrial manufacturer with 2005 sales of $11.1 billion . Eaton is a global leader in electrical systems and components for power quality, distribution and control; fluid power systems and services for industrial, mobile and aircraft equipment; intelligent truck drivetrain systems for safety and fuel economy; and automotive engine air management systems, powertrain solutions and specialty controls for performance, fuel economy and safety. Eaton has 60,000 employees and sells products to customers in more than 125 countries. For more information, visit http://www.eaton.com.

Eaton, Cutler-Hammer, Powerware, Durant, Heinemann, Holec, and MEM are trademarks of Eaton Corporation. Registered copyright ® 2006. All Rights Reserved.

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About Altergy

Altergy Systems® engages in the design, manufacture, marketing and service of proprietary fuel cell power products that are changing the way the world gets its power.  Altergy's Freedom Power™ products are a solution to the serious global shortage of premium power and the growing demand for low cost, high quality power.  Altergy's Freedom Power™ products provide freedom from the grid, freedom from foreign oil, freedom from traditional energy solutions, freedom from batteries and freedom from pollution. 

Altergy’s unique design allows fuel cells to be manufactured in high volume at low cost, making widespread use feasible.  These rugged, fully integrated, modular, scalable and highly-efficient fuel cell systems generate power at the point-of-use, making low cost, distributed power generation a reality. 

For more information about Altergy Systems, visit http://www.altergy.com.

Altergy, Altergy Systems and Freedom Power are trademarks of Altergy Systems.
Copyright © 2001-2008 Altergy Systems. All Rights Reserved.

This news release contains forward-looking statements that are not based on historical facts, but rather are based upon numerous assumptions about future conditions, including but not limited to deployment of fuel cell systems and other products, that may ultimately prove to be inaccurate. These statements should be used with caution and are subject to various risks and uncertainties, many of which are outside the companies’ control. Actual events may materially differ from anticipated results. Factors that could cause actual results to differ materially from those in the forward-looking statements include unanticipated changes in the markets for fuel cell technologies, unanticipated changes in business relationships with customers and unexpected technical difficulties. We do not assume any obligation to update these forward-looking statements.

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Media Contact:

Nancy Frank
916.768.7805
nancy.frank@altergy.com

Investor / Analyst Contact:

Jeremy Wolfe
916.960.5351
ir@altergy.com