Yet another cooperative agreement, the fourth within a short period of time, has been signed between the Chinese automotive industry and Morphic’s subsidiary, Cell Impact AB.

As with previously publicized cooperative agreements, this agreement entails customizing the customer’s fuel cell plates in order to reach optimal production efficiency and performance. The plates are designed for use in fuel cell stacks for vehicles. This contract is the company’s fourth with the Chinese automotive industry in a short period. There is considerable interest in fuel cells in China and it is evident that China will, in all probability, be the first commercial market for fuel cell driven vehicles.

”We launched our marketing campaign in China during the spring of 2006 and found near instantaneous enthusiasm for our products”, says Martin Valfridsson, CEO for Cell Impact AB. ”The cooperative agreements are important milestones on the road to mass production.”

In February 2007, Cell Impact AB will participate as an exhibitor at the world’s largest trade fair for fuel cells, FC Expo 2007 in Tokyo (see also www.fcexpo.jp). More then 350 companies will be represented and the fair is expecting to attract 20 000 visitors from around the world.

Cell Impact AB currently produces test series with flow plates to fuel cells within a number of areas; fuel cells for vehicles, backup power, portable electronics and laptop computers. The purpose of test series is to adapt the customers´s flow plates in preparation for possible mass production in Cell Impact’s production facilities.

In a fuel cell system, electricity is produced by a reaction between hydrogen and oxygen. The system is highly efficient compared to other energy systems and water is the only waste product the conversion produces, making the technology environmentally friendly.