Deal Will Utilize Plug Power’s New GenKey Solution That Provides Fuel Cells, Hydrogen, Fuel Infrastructure and Maintenance Service
LATHAM, NY – February 26, 2014 – Plug Power Inc. (NASDAQ: PLUG) today confirmsthe company has received a multi-site GenKey purchase order from Walmart Stores,Inc. to roll out its hydrogen fuel cell solution to power electric lift truck fleetsat six North America distribution centers. The first of six sites will bedeployed by the second quarter of 2014.
Further purchase order terms for the multi-site order initiallyannounced on February 10, 2014 include:
·Total of 1,738GenDrive fuel cell units, to be deployedover two years
GenDrive hydrogen fuel cells have universal appeal in material handlingapplications because they can contribute to an increase in productivity.Workers spend less time fueling a forklift truck as compared to changing alead-acid battery, resulting in less downtime. GenDrive fuel cells also have no exhaust emissions so thatthey can be a component in implementing corporate environmental initiatives.
“We are pleased with the performance of the hydrogen fuel cells that wehave been operating and are excited to expand our program with Plug Power,”said Jeff Smith, Senior Director for Walmart Logistics.
“This agreement is a tripling of Walmart’s commitment toPlug Power’s fuel cells, and is encouraging because it comes from a companywith so much experience using our product.” said Andy Marsh, CEO at PlugPower. “This is a milestone for Plug Power andits ongoing business relationship with Walmart. Plug Power’s GenDrive productshave a positive impact on the productivity of our customer’s operations. Wehave proven to be a trusted partner and are confident that GenKey will enhanceWalmart’s material handling operations.”
Walmart currently has 535 GenDrive fuel cell units inoperation at sustainable refrigerated distribution centers, including two sitesin Canada and one in the United States. Specifically, Walmart’s Balzac, Canada,fresh food distribution center is the most energy-efficient distribution facilityof its kind in North America. Additionally, the Walmart Washington Courthousedistribution center in Ohio was the launching point of the GenFuel business.
AboutPlug Power Inc.
Thearchitects of modern fuel cell technology, Plug Power is revolutionizing theindustry with cost-effective power solutions that increase productivity, loweroperating costs and reduce carbon footprints. Long-standing relationships withindustry leaders, including Walmart, Sysco, Procter & Gamble, and MercedesBenz, forged the path for Plug Power’s innovative GenKey hydrogen and fuel cellsystem solutions. With more than 4,500 GenDrive units deployed to materialhandling customers, accumulating over 20 million hours of runtime, Plug Powermanufactures tomorrow’s incumbent power solutions today. Additional informationabout Plug Power is available at www.plugpower.com.
PlugPower Inc. Safe Harbor Statement
Thiscommunication contains statements that are not historical facts and areconsidered forward-looking within the meaning of Section 27A of the SecuritiesAct of 1933 and Section 21E of the Securities Exchange Act of 1934, includingbut not limited to statements regarding our expectations regarding the timingand rollout of the new GenKey contract, the performance of our GenKey offeringand the expansion into new markets. These forward-looking statements containprojections of our future results of operations or of our financial position orstate other forward-looking information. We believe that it is important tocommunicate our future expectations to our investors. However, there may beevents in the future that we are not able to accurately predict or control andthat may cause our actual results to differ materially from the expectations wedescribe in our forward-looking statements. Investors are cautioned not tounduly rely on forward-looking statements because they involve risks anduncertainties, and actual results may differ materially from those discussed asa result of various factors, including, but not limited to: the risk that wecontinue to incur losses and might never achieve or maintain profitability, therisk that we may need to raise additional capital to fund our operations andsuch capital may not be available to us; the risk that we may not have enoughcash to fund our operations to profitability and if we are unable to secureadditional capital, we may need to reduce and/or cease our operations; the riskthat a "going concern” opinion from our auditors, KPMG LLP, could impairour ability to finance its operations through the sale of equity, incurringdebt, or other financing alternatives; our lack of extensive experience inmanufacturing and marketing products may impact our ability to manufacture andmarket products on a profitable and large-scale commercial basis; the risk thatunit orders will not ship, be installed and/or converted to revenue; the riskthat pending orders may not convert to purchase orders; the risk that we failto comply with NASDAQ’s listing standards which may result in our common stockbeing delisted from the NASDAQ stock market, which may severely limit ourability to raise additional capital; the cost and timing of developing,marketing and selling our products and our ability to raise the necessarycapital to fund such costs; the ability to achieve the forecasted gross marginon the sale of our products; the risk that our actual net cash used foroperating expenses exceeds our projected net cash for operating expenses; thecost and availability of fuel and fueling infrastructures for our products;market acceptance of our GenDrive systems; our ability to establish andmaintain relationships with third parties with respect to product development,manufacturing, distribution and servicing and the supply of key productcomponents; the cost and availability of components and parts for our products;our ability to develop commercially viable products; our ability to reduceproduct and manufacturing costs; our ability to successfully expand our productlines; our ability to improve system reliability for our GenDrive systems;competitive factors, such as price competition and competition from othertraditional and alternative energy companies; our ability to protect our intellectualproperty; the cost of complying with current and future federal, state andinternational governmental regulations; and other risks and uncertaintiesdiscussed under “Item IA—Risk Factors” in Plug Power’s annual report on Form10-K for the fiscal year ended December 31, 2012, filed with the Securities andExchange Commission (“SEC”) on April 1, 2013 and as amended on April 30, 2013and the reports Plug Power filed from time to time with the SEC. Theseforward-looking statements speak only as of the date on which the statementswere made and are not guarantees of future performance. Except as may berequired by applicable law, we do not undertake or intend to update anyforward-looking statements after the date of this communication.