Hydrogenics Acquires EnKAT GmbH; Company Establishes German Presence and Bolsters Technical Capabilities
Wednesday, April 17

Dr. Ing. Bernd Pitschak Managing Director ENKAT GmbH

Minister for Economics and Midsize Businesses, Energy and Transport of North-Rhine-Westphalia, Ernst Schwanhold

Hydrogenics Acquires ENKAT GmbH; Company Establishes German Presence and Bolsters Technical Capabilities

TORONTO, and HANNOVER, Germany, April 17 - HYDROGENICS CORPORATION (Nasdaq: HYGS; TSE: HYG), a leading designer and manufacturer of proton exchange membrane (PEM) fuel cell systems, announced today the acquisition of EnKAT GmbH. EnKAT, a privately held company based in Gelsenkirchen, Germany, has a leading reputation in the design and manufacture of test systems for fuel cells, reformers, and electrochemical engines. This compelling combination will expand Hydrogenics' existing product offerings and system integration capabilities, also extending the geographical reach of the Company in Europe. Terms of the transaction were not disclosed.

Through this merger Hydrogenics has brought together two companies with similar heritage and competencies. Both companies are well known in the industry for delivering commercial products and revenues today by targeting the market for fuel cell research and development test and optimization equipment. EnKAT's particular expertise in the area of reformer system technology and testing will significantly augment Hydrogenics' balance-of-plant offerings in an area of key importance to fuel cell commercialization.

"Becoming part of a globally-minded organization like Hydrogenics is a landmark event for EnKAT," said Dr. Bernd Pitschak, co-founder and managing director of EnKAT. "The fuel cell industry is evolving very quickly in Europe, in particular within the North Rhine-Westphalia region (NRW) of Germany. This new relationship gives us the ability and resources to capitalize on this momentum by combining our technology strengths and market presence."

"We are very excited about our new relationship with EnKAT and the potential of our combined strengths," commented Pierre Rivard, President and CEO. "EnKAT has impressed and retained marquee European clients in much the same way that Hydrogenics has grown with its clients in North America, the U.K. and Asia. As a result, we see considerable compatibility between the two groups and believe our collaboration will yield impressive results."

"Prior to this event, Hydrogenics expressed its commitment to develop a center of operations in Germany in view of Europe's recognition as an early-adopting market of fuel cell technology based on strong public and government support," continued Rivard. "A primary motivator for this type of acquisition is the number of organizations that are setting up fuel cell development centers within a unified European Union, representing a growing market for our FCATS test system product line. We are confident that acquiring EnKAT's solid technical skills and excellent reputation in fuel cell and reformer test systems, in combination with their existing relationships with leading European automotive fuel cell developers, will bolster Hydrogenics' ambitious strategy for global growth at a sustainable rate. We plan to create and expand key European client relationships based on our test system expertise with the goal of securing opportunities for Hydrogenics' system integration and power product offerings in the future. We are very confident that, with EnKAT's contributions, we have the team and technology to do so."

The details of this acquisition will be discussed in greater detail during Hydrogenics' first quarter 2002 earnings call. The date of this call will be announced in the following weeks.

About Hydrogenics:

Hydrogenics Corporation (http://www.hydrogenics.com) is dedicated to the design and development of commercial PEM fuel cell systems spanning transportation, stationary and portable power applications. With its first commercial product line of fully integrated fuel cell test systems, the Company has established a leadership position in fuel cell balance-of-plant and operating system technology. The foundation of knowledge, expertise, and relationships that Hydrogenics has established from this early R&D product market is now being strategically transitioned to the development and manufacture of fuel cell power modules and fully integrated power generators for substantial power sector markets. Hydrogenics' 9,000 m2 (95,000 ft2) headquarters and R&D facility is located in Mississauga, Ontario, Canada. The Company also operates from an Asia-Pacific office in Tokyo, Japan, and from a U.S. facility in the state of New York. Hydrogenics is a member of the GM alliance of fuel cell commercialization companies.

About EnKAT:

EnKAT is a technological oriented engineering company focused on energy process engineering. A core activity is the system engineering and technological integration of complete development and testing environments for fuel cells and their components. EnKAT is a privately held company located in Gelsenkirchen, Germany.

This release contains forward-looking statements within the meaning of the "safe harbour" provisions of the U.S. Private Securities Litigation Reform Law of 1995. These statements are based on management's current expectations or changes in the competitive environment adversely affecting the products, markets, revenues or margins of Hydrogenics' business; (2) changes in general economic, financial or business conditions adversely affecting the business or the markets in which Hydrogenics operates, (3) the ability to attract and retain customers and business partners, and (4) dependency on third party suppliers. These factors should be considered carefully and readers should not place undue reliance on Hydrogenics' forward-looking statements. Investors are encouraged to review the section captioned "Risk Factors" in Hydrogenics' Form 20F filed with the Securities and Exchange Commission on May 22, 2001 for a more complete discussion of factors that could affect Hydrogenics' future performance. Hydrogenics undertakes no obligations to revise or update any forward-looking statements in order to reflect events or circumstances that may arise after the date of this release.