Plug Power Secures $7M line of credit from Silicon Valley Bank > Fuel Cell Dispatch

Plug Power Secures $7M line of credit from Silicon Valley Bank

Plug Power Inc. a leader in providing clean, reliable energy solutions, today reported that it entered into a $7M USD revolving credit facility arrangement with Silicon Valley Bank on August 9, 2011. The facility will provide the company with additional access to working capital in support of its growing GenDrive(R) business.

Plug Power has seen growth and commercial traction for its GenDrive fuel cell product during the first half of 2011. GenDrive replaces lead-acid batteries in electric lift trucks for the $19.9B USD global material handling market. Plug Power ended the second quarter of 2011 with the largest backlog in the Company's history, totaling $24M USD.

With this additional capital through the revolving line of credit, Plug Power will be able to support working capital needs, including the acquisition of inventory to fulfill a growing order backlog and the resultant management of a larger portfolio of receivables. A strengthened working capital position is important as Plug Power's customer order fulfillment accelerates over the remainder of the year.

Silicon Valley Bank has a reputation for supporting new, market leading and innovative technologies as they emerge and grow. Plug Power was able to leverage its realistic economic models, reliable product suite and proven customer success to validate its business.

"Plug Power is making strategic business decisions to propel us into a stage of profitability for the first time in the Company's history," said Gerry Anderson, CFO at Plug Power. "Additional access to capital will help us secure inventory to meet shipment projections while maintaining a strong cash position on our balance sheet. I believe financial stability is the most important foundation Plug Power can provide its customers, employees and investment community."

"Plug Power is disrupting the status quo in the material handling industry, generating additional need for working capital," said Michael McMahon of Silicon Valley Bank's New York office. "We aim to make our technology clients successful over the long-term, and are pleased to be in a position to assist Plug Power's growth."

About Plug Power Inc.

The architects of modern fuel cell technology, Plug Power revolutionized the industry with cost-effective power solutions that increase productivity, lower operating costs and reduce carbon footprints. Long-standing relationships with industry leaders forged the path for Plug Power's key accounts, including Wegmans, Whole Foods, and FedEx Freight. With more than 1,200 GenDrive units shipped to material handling customers, accumulating over 4.5 million hours of runtime, Plug Power manufactures tomorrow's incumbent power solutions today. Additional information about Plug Power is available at www.plugpower.com .