The company has adjusted the first two of its 2009 milestones to reflect activities and progress in realizing opportunities for its GenSys product to support power needs in the Indian telecommunications industry.

The revised milestones are:

Secure 1,000 orders consisting of both GenDrive and GenSys fuel cell units (previously stated: secure 500 unit orders)

Contain net cash used for operating expenses to the range of $38-42 million for the full year (previously stated range: $33 to 37 million)

Release GenDrive class 2 product in the fourth quarter, broadening the GenDrive product portfolio

Announce path and timeline to profitability in the fourth quarter:

During the first quarter of 2009, Plug Power shipped 186 GenDrive units as customers across the country adopted fuel cell power units into their operations. Most notably, 140 class 3 GenDrive fuel cell units were shipped to Central Grocers for the grand opening of its state-of-the-art facility. Operators at the $90 million Central Grocers facility will handle all goods with hydrogen fuel cell powered lift trucks.

Product Orders, Shipments and Backlog:

Total (GenDrive, GenSys and GenCore) product shipments in the first quarter were 198 units. Total product backlog at March 31, 2009, was 284 units. As noted in the milestone update, the Company has adjusted its expectation upward to 1,000 unit orders and remains committed to meeting this by year end.

Revenue:

Product and service revenue was $1.3 million for the first quarter of 2009, and research and development (R&D) contract work also contributed $1.3 million to the quarter’s revenue total. These amounts compare to $0.9 million of product and service revenue and $2.9 million of R&D contract revenue for the first quarter of 2008.

Deferred product and service revenue at March 31, 2009 was $4.5 million. This compares to $3.7 million at March 31, 2008. Plug Power defers recognition of product and service revenue and recognizes revenue on a straight-line basis over the service period of each sold system. Accordingly, Plug Power expects to recognize the deferred product and service revenue over future periods as service commitments are fulfilled.

Operational Results:

Total cost of revenue for the first quarter of 2009 was $2.7 million, comprised of $0.5 million for product and service cost of revenue and $2.2 million for R&D contract cost of revenue. This compares to total cost of revenue of $6.6 million in the first quarter of 2008, which was comprised of $1.6 million of costs of product and service revenue and $5.0 million of cost of R&D contract revenue.

R&D expenses for the first quarter of 2009 were $4.5 million compared with $10.0 million for the first quarter of 2008.

Selling, general and administrative expenses were $3.2 million for the first quarter of 2009 compared with $6.5 million for the same period in 2008.

Cash and Liquidity:

Net cash used in operating activities for the first quarter of 2009 was $12.8 million. On March 31, 2009, Plug Power had cash, cash equivalents and available-for-sale securities of $88.7 million and net working capital of $80.7 million, compared with $146.8 million and $145.5 million, respectively, at March 31, 2008.

“The first quarter of 2009 was an important transitional period for the company’s company as the company continued to drive fuel cells toward commercialization,” said Andy Marsh, Plug Power’s chief executive officer. “It was exciting to see so many of the purchase orders collected in 2008 come to fruition as GenDrive units were put to use across North America.”

“Plug Power recognizes that there are multiple solutions to meet customer energy needs, and we also recognize the places where fuel cells are the best option,” Marsh continued. “Plug Power has been a leader in the fuel cell industry for over a decade and the company’s reliable products for the material handling, prime and residential power markets will allow us to continue to drive commercialization.”