October 23, 2006

Financial difficulties force layoffs, resignations at Fuel Cell Technologies

KINGSTON, ONT-Employee layoffs and board resignations early this month marked the impending demise of Fuel Cell Technologies Ltd (FCTL), the Kingston-based producer of solid oxide fuel cell (SOFC) systems. The issuing of termination notices to its employees was followed by the resignation of John Varghese, Cameron Thompson, Christopher McElvaine and Christopher McFarlane from the company's board of directors, leaving Dr John Stannard as the sole director. "In light of the feedback we have received from financial institutions, our current financial status, and the limited number of orders in the sales pipeline, we regrettably feel that it is in the shareholders' and employees' best interests to provide notice to employees at this time," said Dr Stannard. To allow FCTL to fulfill substantially all of its existing business commitments, employees have been provided with a combination of working notice and severance. McFarlane, who was also FCTL's chief financial officer, has resigned as an employee but will continue as CFO on a consulting basis for up to twelve months in order to assist with the sale or wind-up of FCTL and its business. Dr John Stannard has also resigned as an employee, but will remain on a consulting basis as well for up to twelve months to assist with FCTL's efforts to conclude its business. FCTL will hold a special meeting of shareholders at the earliest practical date in 2007 to seek shareholder approval for any sale transaction requiring such approval or, alternatively, the wind-up and dissolution of the company. More information is available from Christopher McFarlane at FCTL, 613/541-6125, cmcfarlane@fct.ca

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