McPhy Energy

Earnings Release • Oct 14, 2014

Press release

Revenue at September 30th , 2014

• Recruitment of six senior sales executives, including four regional managers to drive strategic deployment
• Signature of promising contracts

(€ millions)	2014	2013
Q1	0.8	0.5
Q2	0.7	1.1
H2	1.4	1.6
Q3	0.6	0.5
30th At September	2.0	2.1

In the 2014 third-quarter, revenue grew 11%, driven by the Industry segment.

La Motte-Fanjas, October 14th , 2014 - McPhy Energy, specialised in hydrogenbased solutions for energy storage and industrial applications, had 2014 thirdquarter sales of €0.6 million up 11% from the same period last year. Year-to-date sales for the first nine months reached €2.0 million.

As previously, the Industry segment accounted for the major share of revenue and was driven by equipment sales for small and medium hydrogen production units and associated services. Grants for demonstration projects in the energy market to which McPhy Energy contributes through its production equipment and storage solutions for hydrogen in solid form are recognised under other revenue from ordinary activities and as such are not shown in the above figures.

Operating highlights

Commercial teams significantly strengthened

In addition to the recruitment of two senior sales managers to strengthen the sales force in France and northern Europe, the Group also recruited four veteran regional managers originating from the industrial gas and energy sectors for its key markets. These latest arrivals have joined:

Roland Kaeppner's team for Northern and Eastern Europe, C.I.S and Asia-Pacific region:

• Pavel KOMISSAROV, regional manager for Eastern Europe and C.I.S. Previously business development manager for Air Liquide for Russia, he was in charge of the oil&gas, chemistry, metallurgy and glass sectors.
• Ken Kok LEE, regional manager for Asia-Pacific. With 15 years of experience in management positions in several Asian countries for the major German supplier of gases for industry and medical applications, he contributed namely to the successful new business development area in Packaged Plant Solutions for the Asia Pacific region. He is based in Singapore.
• Karsten POT, sales manager for Northern Europe. Previously Vice President Power Station, region South East Asia, at Siemens.

Adamo Screnci's team for Southern Europe, Northern America, Middle East, Africa and India:

• Prabhu K. RAO, regional manager for Northern America. This alternative energies specialist was previously Vice President of Operations for Nuvera Fuel Cells Inc., where he namely developed an on-site hydrogen generation business addressing markets in the automotive, material handling and industrial markets.
• Jalal Abdenour, regional manager for Middle East, Africa and India. Former Vice President International Business for Sacré-Davey Engineering and Managing Director for Sacré-Davey Project (Middle East), his entire career, first as a consultant and then as a chief executive officer, has been in the Middle East.
• Bertrand Amelot, sales manager for France. Previously sales manager for the Services Division of Cofely GDF Suez.

These recruitments will enable McPhy Energy to accelerate the deployment of its international development through a presence that is now worldwide, and benefit from the immediate contributions of highly experienced professionals that are immediately operational in their respective sectors.

Promising projects

The main contracts added in the quarter confirm the international recognition and commercial potential of its offering in its two markets for hydrogen energy and industrial hydrogen, and include by way of example:

• Energy. McPhy Energy signed a contract to sell its first integrated productionstorage solution to the Australian firm Petawatt® Energy, an independent developer and operator of sun, water and wind hydrogen energy production sites. The company, that will install this solution for its land-based hydrogen energy production system on its client demonstration site, recently signed a purchase agreement for hydrogen energy and derivatives for 15 sites using this system.
• Industry. McPhy Energy and its partner Ecisgroup, an Italian engineering company that provides technological solutions for petroleum, gas and energy industries, have won their first joint contract to equip a power plant.

Under its terms, McPhy Energy and Ecisgroup will equip the alternator of a power generation plant built by the South Korean group Daewoo E&C in Algeria with a hydrogen-based cooling system. This contract opens up the Industry activity to the promising market of power plant cooling.

These two contracts will represent more than €0.5 million in sales.

Following its IPO and listing on Euronext (segment C), with €22 million in cash at September 30th , 2014 McPhy Energy has solid financial resources to successfully execute its development strategy.

About McPhy Energy

McPhy Energy, a leading developer of hydrogen-based solutions, was founded at La Motte Fanjas (Drôme) in France in 2008. The company draws on its exclusive technique for storing hydrogen in solid form and its years of experience in producing hydrogen through water electrolysis to design and manufacture flexible storage and production equipment.

McPhy Energy markets easy-to-use, environmental-friendly solutions combining unique safety features and energy independence to over 1,000 clients in the renewable energy, mobility and industry sectors.

The Group has three production sites in France, Germany and Italy and a R&D laboratory in France.

Since March 25th , 2014, McPhy Energy is listed on NYSE Euronext Paris (Segment C, code ISIN: FR0011742329; ticker: MCPHY).

www.mcphy.com

McPhy Energy media relations

Calyptus Marie-Anne Garigue Tel: + 33 1 53 65 68 63 marie-anne.garigue@calyptus.net