Plug Power: Restructuring of the Organization

Plug Power Inc., a leader in providing clean, reliable energy solutions, today announced that it is taking immediate steps to become a market and sales driven organization.

As part of a restructuring plan approved by the board of directors, the Company is reducing its workforce of 380 by approximately 80 positions. The majority of the positions eliminated were located at the corporate headquarters. The reduction in force focuses primarily on streamlining general and administrative expenses, and sizing the organization to drive short-term revenue targets. Concurrently, Plug Power will continue to invest in long-term opportunities in the continuous power business. Accordingly, the reduction in cash consumption is expected to extend Plug Power's funding by an incremental 12 to 18 months, providing valuable time in which to build and demonstrate substantial market traction.

Severance packages will be offered to the separated employees. The Company expects to recognize a substantial majority of the restructuring charges by the end of 2008. Further details on the amount and breakdown of the charges associated with the restructuring will be provided in an 8-K filing with the SEC the week of June 16, 2008. By implementing this cost savings initiative immediately, Plug Power believes it is taking actions needed to best position itself for long-term growth and future profitability.

Following the integration of the GenDrive(tm) motive power business, the Company has experienced significant customer interest in its GenDrive fuel cell power units. Commercial field demonstrations by major material handling operations continue to prove the value propositions of lower operating costs, greater productivity, more usable commercial space and the elimination of the handling and storing of toxic chemicals. Therefore, Plug Power will make material handling market development efforts a priority by expanding the GenDrive product portfolio and strengthening the sales team.

The Company will continue to offer reliable products for backup power and will be completing its full product portfolio to meet customer requirements. Plug Power will focus any future investment in this business on expanding the sales and marketing channel.

Commenting on the cost-cutting measures, Andy Marsh, president and CEO, stated, ``We are structuring Plug Power for long-term success, moving from an engineering and technology company to one focused on sales and marketing of our products. The decisions and actions we are taking today will build on our core strengths and leadership in fuel cell technology to help create a profitable organization. This strategy aligns with our vision for the future. I am committed to leading this Company towards market acceptance, sales and profitability for the industry, employees and investors.''

``In human terms, the reduction is difficult because it affects so many of our dedicated and talented co-workers. While not easy, this is necessary for Plug Power to become a long-term and viable business. The board and I are grateful for the excellent work performed by everyone at the Company over the last 10 years,'' concluded Marsh.

About Plug Power Inc.

Plug Power Inc. an established leader in the development and deployment of clean, reliable energy solutions, integrates fuel cell technology into motive, continuous and backup power products. The Company is actively engaged with private and public customers in targeted markets throughout the world. For more information about how to join Plug Power's energy revolution as an investor, customer, supplier or strategic partner, please visit

Investor Relations Contact:
          Cathy Yudzevich
            (518) 782-7700 ext. 1448

Source: Plug Power Inc.
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