Based on materials from the official web-site of MMC Norilsk Nickel.

Norilsk Nickel and Interros have arranged for the acquisition of 35% of the shares of a leading US designer of environmentally clean and reliable energy products, Plug Power.

The deal is being made through Smart Hydrogen, a 50-50% joint venture of Norilsk Nickel and Interros, formed to participate in the global hydrogen economy. Currently Smart Hydrogen holds 3.2% of the shares of Plug Power. Immediately following the closing of the deal, on a combined basis, the partners are expected to hold approximately 35 percent of Plug Power’s outstanding common stock on an as-converted basis. Norilsk Nickel’s Board of Directors will review the transaction in May 2006.The $241 million transaction is expected to be closed in June 2006.

“Norilsk Nickel has long been the principal and the only investor in Russian R&D in the area of hydrogen technology and fuel cells,” said Mikhail Prokhorov, CEO of Norilsk Nickel and one of the largest shareholders of Interros. “We believe in the potential of the hydrogen energy industry and look forward to helping Plug Power continue with their revolutionary advancements in fuel cell technology.”

“Involvement in this project creates a multiplier effect for Norilsk Nickel. First, it stimulates an increase in demand for palladium, which is used in hydrogen technology, as well as an increase in price for the metal in the long term. Second, we are moving into high value-added high-tech manufacturing, which will enable us to realize value in this segment of the market as well. Third, such installations will very soon start enjoying a robust demand in the Northern Territories, which will help strengthen the energy security of our company with its key production capacities located above the Arctic Circle,” emphasized Mikhail Prokhorov.

In November 2003, Norilsk Nickel signed an agreement with the Russian Academy of Sciences regarding cooperation in the area of hydrogen technology R&D and fuel cells. As much as $120 million has been committed to be invested in this project over three years. Already, the early results have allowed Norilsk Nickel to start commercializing a number of key technologies and preparing to build hydrogen power plants based on fuel cells. In early 2005, Norilsk Nickel founded the National Innovation Company “New Energy Projects” to coordinate such efforts and manage their commercialization.

Through involvement in projects related to development of promising hydrogen technology and fuel cells, Norilsk Nickel expects to expand applications of palladium and platinum. In addition, Norilsk Nickel’s key production facilities are located above the Arctic Circle and require reliable, efficient, environmentally clean power supply, which, in the long run, can be made available through the use of fuel cells.