Proton Energy Systems and Airgas Sign Agreement to Market On-Site Hydr

    Business Editors/Energy Editors

    WALLINGFORD, Conn. & RADNOR, Pa.--(BUSINESS WIRE)--May 3, 2005--Airgas, Inc. (NYSE:ARG) has announced a three-year agreement for its regional companies to market and distribute Proton Energy Systems Inc.'s proprietary HOGEN(R) on-site hydrogen generation systems to customers in the United States. Proton Energy Systems is a subsidiary of Distributed Energy Systems Corp. (NASDAQ:DESC), and is a world leader in on-site hydrogen generators.
    "We are very excited about the business relationship and marketing agreement we have established with Proton Energy," said Tom Thoman, vice president - Gases, for Airgas, Inc. "Adding the HOGEN system to the already strong portfolio of industrial gases, specialty gases, process chemicals and equipment that we currently offer to the nation's power utilities and other industries will give us one more way to help our customers nationwide find solutions to their gas needs."
    Proton Energy's President Mark Murray added, "We are very pleased to be in partnership with Airgas, whose national scale and strong local presence will bring Proton Energy's on-site hydrogen supply technology to customers across the United States. Our systems improve operating performance, safety, security and economics."
    Murray noted that among several uses, hydrogen cools the windings of large power plant generators because of hydrogen's high heat capacity and low density. "HOGEN systems offer significant economic and operational improvements that help reduce windage losses and optimize equipment, resulting in fuel savings, less air pollution, elimination of redundant equipment and extended generator life," said Murray.

    About Airgas, Inc.

    Airgas, Inc. (NYSE:ARG) is the largest U.S. distributor of industrial, medical and specialty gases, welding, safety and related products. Its integrated network of nearly 900 locations includes branches, retail stores, gas fill plants, specialty gas labs, production facilities and distribution centers. Airgas also distributes its products and services through eBusiness, catalog and telesales channels. Its national scale and strong local presence offer a competitive edge to its diversified customer base. For more information, please visit www.airgas.com.

    About Proton Energy Systems and HOGEN(R)

    Proton Energy Systems, Inc., a subsidiary of Distributed Energy Systems Corp. (NASDAQ:DESC), is a world leader in development and manufacture of Proton Exchange Membrane (PEM) on-site hydrogen generators. Proton's HOGEN hydrogen generators produce hydrogen from electricity and water in a clean and efficient process. HOGEN hydrogen systems are used worldwide to supply hydrogen for industrial processes such as power plant generator cooling, materials processing, semiconductor manufacturing, fuel cell fueling, chemical reactions, and laboratory analysis. For more information, please visit www.protonenergy.com.

    Forward-Looking Statement for Airgas, Inc.

    This press release contains statements that are forward-looking, as that term is defined by the Private Securities Litigation Reform Act of 1995 or by the Securities and Exchange Commission in its rules, regulations and releases. These statements include, but are not limited to, statements regarding: the Company's agreement with Proton Energy Systems, Inc. to distribute its HOGEN(R) on-site hydrogen generators; and the expectation that the unique HOGEN technology will give the Company one more way to help customers find solutions to their gas needs. Airgas intends that such forward-looking statements be subject to the safe harbors created thereby. All forward-looking statements are based on current expectations regarding important risk factors and should not be regarded as a representation by the Company or any other person that the results expressed therein will be achieved. Important factors that could cause actual results to differ materially from those contained in any forward-looking statement include the Company's ability to continue its contractual relationship with Proton Energy Systems; an economic downturn; increased industry competition; political and economic uncertainties associated with current world events; and other factors described in the Company's reports, including Form 10-K dated March 31, 2004, and Forms 10-Q dated June 30, 2004, September 30, 2004 and December 31, 2004 filed by the Company with the Securities and Exchange Commission.

    Forward-Looking Statement for Distributed Energy Systems Corp.

    This press release contains forward-looking statements for purposes of the safe harbor provisions under The Private Securities Litigation Reform Act of 1995. Statements contained herein that are not statements of historical fact, including statements concerning the agreement between Airgas and Proton, may be deemed to be forward-looking information. Without limiting the foregoing, words such as "anticipates", "believes", "could", "estimate", "expect", "intend", "may", "might", "should", "will", and "would" and other forms of these words or similar words are intended to identify forward-looking information. Proton's and Distributed Energy's actual results may differ materially from those indicated by these forward-looking statements as a result of various important factors. Proton Energy Systems and Distributed Energy each disclaim any obligation to update these forward-looking statements. Factors that could cause results to differ materially from those contained in Proton's and Distributed Energy's forward-looking statements include, but are not limited to, failure of our products and systems to perform as specified or achieve commercial acceptance, the impact of competitive products and systems and other factors detailed in Distributed Energy's Form 10-K for the year ended December 31, 2004, and other filings Distributed Energy may make from time to time with the SEC.

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CONTACT: Airgas, Inc. Investor Contact: Melissa Nigro, 610-902-6206 melissa.nigro@airgas.com or Media Contact: James Ely, 610-902-6010 jim.ely@airgas.com or Proton Energy Investor and Media Contact: John Glidden, 203-678-2355 john.glidden@distributed-energy.com

KEYWORD: CONNECTICUT PENNSYLVANIA INDUSTRY KEYWORD: OIL/GAS ENERGY CHEMICALS/PLASTICS MANUFACTURING UTILITIES PRODUCT MARKETING AGREEMENTS SOURCE: Airgas, Inc.

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