Press Release

Stuart Energy Unveils Next Generation Hydrogen Station

Sacramento, California and Hannover, Germany, April 20, 2004 - Stuart Energy Systems Corporation (TSX: HHO) today simultaneously unveiled its small Stuart Energy Station (SES) product at Governor Schwarzenegger’s Hydrogen Highway announcement in California as well as at the Hannover Fair in Germany. The small SES is a configurable water electrolysis infrastructure solution that produces and delivers up to 3 Nm³h (114 scfh or approximately 6 kg a day) of clean, pure hydrogen that can be used in industrial, power and transportation applications.

“We developed this next generation product to meet the growing demand for a reliable, economic supply of hydrogen in smaller quantities, ” said Jon Slangerup, President and CEO of Stuart Energy. “I am particularly excited about the transportation market for these SES systems. We believe this product is perfectly suited for emerging ‘hydrogen highway’ projects that are aiming to put hydrogen fueling infrastructure in place as vehicles are introduced. Because our SES product portfolio can be scaled from small to very large applications, we are able to offer hydrogen infrastructure solutions that can keep pace with the growth of hydrogen-powered vehicles and power applications over time."

The SES product line is a modular system that consists of Hydrogen Generation, Compression, Storage, Power and Fuel Dispenser modules. The small SES is designed to safely and reliably generate up to 3 Nm³h (114 scfh) of hydrogen, at up to 99.9995% purity, depending on the purity package selected. Based on the Company’s proprietary Vandenborre IMET^® cell stack, the small SES uses electricity to efficiently separate water into hydrogen and oxygen. The hydrogen is produced at 25 bar (363 psi). Pressure can be boosted to 417 bar (6000 psi) by using an optional Compression Module.

By configuring the SES modules, a customer can build a system suitable for industrial and energy applications where a small quantity of hydrogen is required. These applications include laboratory fuel cell testing, generator cooling in thermal power plants, vehicle fueling, battery replacement, small off-grid power, and a variety of other infrastructure applications. When tied to renewable sources of electricity, such as PV solar or wind power systems, the SES offers a completely zero-emission energy cycle.

The small SES unveiled at Governor Schwarzenegger’s announcement is configured to operate directly from PV solar power, or from grid electricity, depending upon the customer’s application. This small SES is being demonstrated using Solar Integrated Technologies’ unique solar canopy, which produces sufficient off-grid electricity to fully operate the small SES. This product demonstration shows one of several possible consumer applications for on-site hydrogen generation, storage, fueling and distributed power.

The Company is also using the small SES platform in the development of its HomeFueler^®, which is being designed to allow hydrogen vehicle owners to fuel their car in the comfort and convenience of their own home.

About Stuart Energy
Stuart Energy Systems Corporation (TSX: HHO) is the world leading developer and supplier of integrated hydrogen infrastructure solutions that serve existing and emerging markets for power generation, transportation and industrial applications. The Company’s website address is http://www.stuartenergy.com

This release includes forward -looking statements, which are based on certain assumptions and reflect management's current expectations as contemplated under the Safe Harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward -looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations. Some of these factors include: general global economic conditions; general industry and market conditions and growth rates; uncertainty as to whether our strategies and business plans will yield the expected benefits; increasing competition; availability and cost of capital; the ability to identify, develop and achieve commercial success for new products, services and technologies; the level of expenditures necessary to maintain or improve the quality of products and services; changes in technology; changes in laws and regulations, including codes and standards, intellectual property rights, and tax matters; the uncertainties of the emerging hydrogen economy, including the hydrogen economy growing at a slower pace than is anticipated; our ability to secure and maintain strategic relationships; the availability of, and ability to retain, key personnel; and the failure of the Company to effectively integrate acquisitions. Additional factors are discussed in our materials filed with the securities regulatory authorities from time to time. We disclaim any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

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© Stuart Energy Systems Corporation, 2004, All rights reserved.