November 2010

The content of this presentation is PLUG POWER INC. PROPRIETARY AND CONFIDENTIAL. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means - electronic, mechanical, photocopying, recording or otherwise - without the permission of Plug Power Inc.
Copyright 2010 by Plug Power Inc.

Plug Power Inc. Safe Harbor Statement

This communication contains forward-looking statements within the meaning of the Private

Securities Litigation Reform Act of 1995, including but not limited to statements regarding the

number of GenDrive units we expect to ship in 2010 through 2012, our projected revenues and

margins for 2010 through 2012, and our expectations for achieving profitability in 2012 and positive

cash flow in 2013. We believe that it is important to communicate our future expectations to our

investors. However, there may be events in the future that we are not able to accurately predict or

control and that may cause our actual results to differ materially from the expectations we describe

in our forward-looking statements, including, without limitation, our ability to reduce product and

manufacturing costs; our ability to improve system reliability for GenDrive; our ability to successfully

expand our product lines; the risk that unit orders will not ship, be installed and/or convert to

revenue, in whole or in part; our ability to develop commercially viable products; the cost and timing

of developing our products and our ability to raise the necessary capital to fund such development

costs; market acceptance of our GenDrive systems; our ability to manufacture products on a large-

scale commercial basis; competitive factors, such as price competition and competition from other

traditional and alternative energy companies; the cost and availability of components and parts for

our products; our ability to establish and maintain relationships with third parties with respect to

product development, manufacturing, distribution and servicing and the supply of key product

components; the ability to achieve the forecasted gross margin on the sale of our products; the cost

and availability of fuel and fueling infrastructures for our products; our ability to protect our

intellectual property; the cost of complying with current and future governmental regulations; the

impact of deregulation and restructuring of the electric utility industry on demand for Plug Power's

energy products; and other risks and uncertainties discussed under "Item IA-Risk Factors" in our

annual report on Form 10-K for the fiscal year ended December 31, 2009, filed with the Securities

and Exchange Commission ("SEC") on March 16, 2010, and the reports we file from time to time

with the SEC. We do not intend to and undertake no duty to update the information contained in this

communication.

Experienced Management Team

Andy Marsh, President & CEO

•

Joined Plug Power in April 2008

•

Co-founder and CEO of Valere Power (sold to Eltek ASA in 2007)

•

18 years with Lucent Bell Laboratories in sales and technical management positions

•

BSEET from Temple, MSEE from Duke and a MBA from SMU

Gerry Anderson, CFO & VP of Operations

•

Joined Plug Power in July 2007

•

Treasurer and Director of Finance for Intermagnetics General Corp.

•

CFO at J Management Company

•

SVP, KeyCorp

•

B.Sc. University of Arizona

Adrian Corless, VP of Engineering

•

Joined Plug Power in April 2007

•

CTO of Cellex Power Products

•

10+ years specializing in hydrogen-based material handling market

•

MASc from University of Victoria

Erik Hansen, VP of Sales and Service

•

Joined Plug Power in 2008

•

GM of Sales and Systems Engineering for Cobasys

•

BSEE and BSCE from West Virginia University

Executive Summary

Plug Power is the leader in commercialization of fuel cell solutions

•

Develops, manufactures, integrates and services proprietary fuel cell solutions

•

Over 13 years experience with fuel cell technology; 245 issued patents, 30 pending

•

Over 1000 units in the field and 2 million hours of run time

Plug Power’s GenDrive^TM solution is the dominant market share leader in motive

power & material handling applications

•

Drop-in replacement alternative for lead-acid batteries used in electronic lift truck applications

•

85% market share for fuel cell powered lift trucks in material handling market

•

Only fuel cell company with a full suite of products capable of converting a customer’s entire fleet

Proven value proposition with compelling financial return

•

Reduced operating expenses and improved productivity / operational efficiencies up to 15%

•

Increased commercial efficiencies and environmental benefits

Strategic relationships with industry leaders and growing customer-base

•

Exclusive supply agreement with Ballard Power Systems for fuel cell stack

•

Distribution agreement with Raymond Corporation for the sale, rental and lease of GenDrive™

fuel cell units in North America

- Other OEMs to follow

•

Focused on food distribution, consumer/retail and manufacturing accounts

Plug Power Currently Focused on Material Handling in North America

GenDrive Products

Operational Benefits, Large Market

Opportunity and Path to Profitability

Increased Productivity

Class 1

Sit-down Lift Trucks

Lower Operational Costs

Additional Commercial Space

Zero Emissions

Class 2

Large Market Opportunity

Stand-up Reach Trucks

Early Traction with Large Customers

Focused Strategy to Drive Revenue

Growth And Profitability

Class 3

Rider Pallet Trucks

Key Characteristics of Plug Power’s Target Customers

Criteria

Desired

Rationale

Class 1, 2, 3 forklifts in

Food, Consumer/Retail,

Industries served

distribution centers and

Manufacturing & Distribution

facilities

Efficient utilization of

Fleet number

50+ trucks

hydrogen infrastructure

Maximize productivity and

Number of shifts

>= 2 shifts

efficiency improvement

potential

Smaller difference in capital

Batteries per forklift

>= 2 batteries

equipment costs

Smaller difference in energy

Electricity costs

> $0.10 / kW-hr

costs

Widespread productivity

Labor rates

> $25 / hr

gains through operations

Increased Volumes ®

Reduced Cost ®

Greater Flexibility in Target Characteristics

Customer Base is Building

Sales Strategy

2010 - 2011

•

Focus on the North American Market

- Direct sales to targeted large accounts

- Leverage OEM dealer network for other

accounts

2012

•

International Expansion

- Product portfolio available

- Leverage relationships with large

international companies

• Coke

• BMW

• P&G

• Fresh and Easy (Tesco)

Tax Credit & Government Incentives Overview

Current Fuel Cell Tax Credit

•

Currently offers tax credit equal to $3,000/kW up to 30% cost of fuel cell system

•

Calculation excludes cost of fuel cell balance of plant and fork lift components

•

Eligible for §1603 grant-in-lie of credit

Proposed Fuel Cell Tax Credit

•

Increases the reach and amount of the credit by shifting the calculation to a portion of the

list price of both the fuel cell and fork lift—i.e., to a substantial percentage of the price

differential between traditional battery powered forklifts and fuel cell powered forklifts

•

Gives forklift manufactures new incentive to encourage customer adoption of fuel cells

Proposed Hydrogen Infrastructure Tax Credit

•

Hydrogen Infrastructure Tax Credit currently offers a 50% tax credit up to $200,000 per

station for the installation of hydrogen fueling infrastructure for use in automotive

applications

•

Extends the current hydrogen fueling infrastructure tax credit to material handling

applications and keeps the higher limit of $200,000

Possible extension of

§1603 grant-in-lieu of credit program

•

Currently (to 12/31/10) offers taxpayers a rebate in the amount of the tax credit they

would otherwise be eligible to take under the current fuel cell tax credit legislation

•

Proposed extension of this program currently under legislative consideration

Customer Success

• Site Success

- Greer, South Carolina- 86 units

- Mix of class-1, -2 and -3

- First BMW plant to use fuel cell-powered forklift trucks

• New facility built without battery infrastructure

• Entire fleet deployed with GenDrive fuel cell

power units

• Affirming global commitment to sustainability

• Adjacent 1.2M sq. ft. facility with 300+ trucks

with opportunity for conversion to fuel cells

Customer Success

• Sysco Houston - new 585,000 sq. ft. greenfield

facility

• No battery infrastructure

•

98 Forklift trucks are 100% powered by Plug

Power Power fuel cells

• Multi-distribution center commitment

• Involved in the development & testing of

GenDrive since 2001

• Operates 100+ DCs with over 11,000 forklift

trucks

Customer Success

• Site Success

- Sarasota, FL - 65 units

• Existing facility converted to hydrogen fueling

• Old battery storage facility now used to store

more product

• Conversion expected to reduce carbon

emission by ~132 metric tons annually

• Entire fleet deployed with GenDrive fuel cell

power units

• Operates 10+ DCs in U.S.

Customer Success

• Site Success

Charlotte, NC: 40 units

San Leandro, CA: 37 units

•

Reiterates commercial readiness of Plug Power

solution for increasing productivity and reducing

carbon footprint

• Provided Class 1 sit down counterbalance

GenDrive

• Operates 100+ DCs with 2000+ forklift trucks

Customer Success

• New 450,000 sq. ft. facility in Canada with over

60 forklift trucks exclusively powered by Plug

Power Power

• Eliminated need to change out lead acid

batteries

• Expected GHG reduction up to 72%, compared

to batteries charged from the grid

• Strong supporter of Plug Power Power fuel cells

since 2006 trials

• Operates 100+ DCs with close to 20,000 forklift

trucks; Future site expansion planned

What Our Customers Say

“Sysco is committed to energy and operational

“Hydrogen fuel cells not

efficiency, and consistently strives to find a greener

only provide greater

way of doing business. We are proud to introduce

productivity and lower

our first installation without battery infrastructure for

operating costs but will

a pallet truck fleet, and hope that this may lead to

be an important

further conversions at other facilities.”

component of a clean

- Larry Pulliam, Sysco

energy future.”

- Tom Dziki, UNFI

“Whole Foods Market is committed

to healthy food and a healthy planet.

“With these fuel cell materials handling

We are fulfilling that commitment by

units, we will be able to maintain

choosing to use greener technology

productivity, decrease operating costs and

in our own operations that will

lower greenhouse gas emissions by 30

improve our productivity and lower

percent.’”

our long-term costs.”

- Lauren Steele. Coca-Cola Consolidated

- Joe Strong, Whole Foods

Sales Channel Success

•

Leading NA forklift truck manufacturer 100% owned

by Toyota

•

Strong supporter of fuel cell technology and

productivity gains

•

Independent distributor of GenDrive in NA with

nationwide coverage

•

More then 20 dealers across NA

•

Other OEM distributor agreements to follow

Strong Partnership Relationships

•

Leader in the design and manufacture of hydrogen

fuel cells stacks

•

Exclusive supplier of fuel cell stacks for GenDrive™

power units through 2014 for North America material

handling market

•

Plug Power is exclusive integrator of Ballard stacks

for material handling in North America

•

Ballard stacks used in a variety of applications from

buses, to energy plants, to backup power

Hydrogen Infrastructure Partners and Strategy

Partners

Strategy

Established relationships with key industrial

gas suppliers

Hydrogen supplied on-site at customer

locations

Cooperation with suppliers to approach new

and existing customers

Cost and availability of hydrogen critical to

fuel cell deployment

•

Hydrogen infrastructure and gas usage costs

Strong governmental support on building out

hydrogen infrastructure

Licensing Agreement with IdaTech

$5M IP license agreement and sale of certain hard assets

Allows Plug Power to monetize investment in

continuous-run and intermittent back-up power

technology

•

Licensing rights to technology and know-how

•

Royalty arrangements for sub-licensed products sold

Maintain Plug Power’s ability to service markets with

these products in the future

•

Plug Power continues to own and maintain the

intellectual property without any constraints

Patents

Know-how

Refocused Business Strategy and Capital Plan

Primary focus on material handling market and GenDrive™ product

development

•

Projecting shipments of 650 - 800 units, 500 - 800 orders in 2010

•

12+ trials over past 12 months

•

Distribution agreements with Raymond in place

Sales and marketing-focused culture

•

Invest in sales and marketing initiatives, including direct sales and OEM dealer

networks

•

Leverage large international customers

Continued focus on expense reduction initiatives

•

Recurring operating expense run rate reduced to $16M from $58M* in 2008

•

Centralized activities in Latham, NY

*Annualized run rate of cash operating expenses as of Q1 2008

Near Term Financial Projections

2010

2011

2012

Shipments

(units)

650 - 800

1,800 - 2,300

3,400 - 4,400

high teens -

mid 30’s - mid

mid 60’s - low

Revenue

($ mil)

low 20’s

40’s

80’s

Gross Margin on

high single

low 20’s - mid

Product Sales

Negative

digits

20’s

(%)

high 30’s - low

mid teens -

EBITDAS

($ mil)

breakeven

40’s loss

low 20’s loss

Operating Cash

high 30’s - low

mid teens -

-5

+5 *

($ mil)

40’s use

low 20’s use

* Dependent upon availability of bank revolver to fund working capital changes

What Needs to Happen to Achieve Financial Projections

2010:

• Finalize deal with Sysco for multiple facilities

•

4 - 5 new customers signed up to deals in 2

half of 2010

• Work through component sourcing issues to have availability of inventory

• Work with partners to insure adequate fueling station assets are available for

sites

2011 - 2012:

• A large corporate account signed up by Q2 of 2011

• Achieve product and service cost reductions through engineering and sourcing

initiatives that are underway

2013 and Beyond

Continued annual growth in shipments and revenue of 25%+

Revenues of $100M+

Gross margins in excess of 30%

Material handling market expansion outside North America as well as

increased penetration at existing customers

Profitable and growing repeat business through parts and services of

installed base

Expanded total available market by introduction of Plug Power products into

other specialty vehicles (i.e. airport ground support equipment, fleet vehicles

such as the USPS)

Conclusion

Hydrogen a compelling alternative energy solution for material handling and

motive power applications

Plug Power is the leading provider of fuel cell solutions for motive applications

•

Established first-mover advantage in industry

•

85% market share for fuel cell powered lift trucks in material handling market

•

Customers include industry-leading Fortune 500 companies

Plug Power in early commercial adoption phase with high growth ramp

•

Double shipments each year from 2010 to 2012, with continued annual growth of

25% - 30% thereafter

•

Comparable doubling of revenues over same time frame

Continue to drive toward 30%+ gross margins

Profitability by 2012

Positive cash flow by 2013

HEADQUARTERS

968 Albany Shaker Road

Latham, New York 12110

Phone: (518) 782-7700

Fax: (518) 782-9060