Fuel Cells: The Emerging Way of Ensuring Network Reliability

1. Fuel Cells: The Emerging Way of Ensuring Network Reliability Marcos Villanueva Vice President, International Business Development June 2006

2. Backup Power Industry Trends • Natural disasters demonstrate the need to improve reliability. • Communication networks are vital to national security and emergency response. • Network operators are exploring alternatives to incumbent technologies. • Expanding telecom services results in increased backup power requirements • Developing countries need reliable quality power to sustain economic growth.

3. Communications Systems Backup Power • Historical • Wireline carriers typical back-up objective ≥ 8 hours • Wireless carriers backup objectives range from 2 hours to 8 hours • Recent Events • The importance of robust and reliable communications has come to the forefront in the minds of the consumer, corporations, policy makers and therefore the Carriers • Natural Disasters • Terrorism • Critical Services • Today • Carriers are seeking extended power solutions to support their networks • Expectation is up to 48 hours and even 72 hours without the need for site visits, refueling, or supplementary technology • Traditional solutions pose increasing challenges related to refueling, environmental, reliability, and theft

4. Incumbent Technologies • Batteries (VRLA) • Traditionally a primary design component of a reliable network • Economical for short run times • Issues • Life of 3-5 years • Higher temperatures = lower life • Extending reserve time = increasing number of batteries proportionally • Hazardous materials require special disposal conditions • Inability to remotely monitor health or reserve time

5. Incumbent Technologies • Generators • Traditionally a solution to battery limitations • Economical for longer run time needs than batteries • Issues • Complexity increases threat of failure • Maintenance costs / time • Initial installation expense may be high • Provides AC power • Most communication sites need DC power • Environmental restrictions • Permitting • Spill containment • Potential contamination issues • Noise restrictions

6. AC TRANSFER SWITCH OPTIONAL GENERATOR BATTERY BANK LOAD LOAD Typical Back-Up Power System UTILITY FEED AC RECTIFIER DISTRIBUTION PANEL METERED DISCONNECT Backup Run Time Determined by Size/Capacity of Battery Bank DC BUS

7. PEM Fuel Cell: How It Works e- O2 H2 H2 H+ e- H+ e- H+ e- H+ O + H - H+ e- H O H+ H+ H ElectronsfromHydrogen Electrical Load Oxygen Molecules Water molecules forming Hydrogen Molecules Proton exchangemembrane electrolyte Catalyst/Electrode Catalyst/Electrode

8. A Modular, Cartridge-Based Design Fuel Cell • An energy producing system • PEM Fuel Cells use a chemical reaction to produce electric power • Its fuel is Hydrogen • Efficient mode to produce electricity • “Hot-swappable” cartridges • Failed membranes are bypassed • Load is not interrupted • Environmentally friendly

9. AC TRANSFER SWITCH OPTIONAL GENERATOR BATTERY BANK LOAD LOAD Typical Back-Up Power System UTILITY FEED AC RECTIFIER DISTRIBUTION PANEL METERED DISCONNECT Backup Run Time Determined by Size/Capacity of Battery Bank DC BUS

10. Typical Installations BTS Applications: • Limited Access/Remote Sites • Long Drive Time to Sites • Substantial Permitting Restriction • Repeater Sites in Congested Areas • Highway Sites: • Large Coverage Area/Minimal Overlap Microwave Applications: • Microwave Hub Sites: • High Traffic/Revenue Sites • Multiple BTS Sites Dependent On Hub • Lower Channel Count • Microwave Repeater • BTS Link to MSC • BTS’s “daisy-chained” to MSC Fiber Backhaul Applications: • Fiber Amplifier/Re-Gen Equipment • High Volume of Traffic

11. Applications: Targeted Applications: • Microwave Hub/Repeater/Backhaul Sites • Remote Base Station Backup • Environmentally Restrictive Sites

12. Competitive Advantage Fuel Cells vs. Incumbent Technologies ReliOn Batteries Generators Fuel Cells Modular Hot-swappable Simple Design Environmentally Friendly Low Maintenance Low Installation Costs Extended Run-time Solutions

13. Value Proposition for Fuel Cells as Backup Power • Flexibility:Fuel cells are scalable and can be configured according to the load and supplied with fuel to allow various runtimes depending on site requirements. • Cost:Factoring in capital and operational costs, many fuel cells are cost effective compared to batteries or generator sets. • Reliability:ReliOn fuel cells have been thoroughly tested resulting in measured reliability and availability of 99.8%. • Simplicity:ReliOn fuel cells are modular and simple to maintain and, if needed, to repair using hot-swappable, field replaceable devices. • Environmental:Hydrogen fuel cells are quiet and clean producing only heat and water as byproducts. Compressed hydrogen is proven and safe without the need for spill containment or abatement.

14. Outdoor Installations • Backup for Existing Installations: • Critical Installations/Unreliable Power • Installation Options • Cabinetized Sites • Sheltered Sites ReliOn Outdoor Enclosure

15. Indoor Installations • Basic Integration Into Shelter • Fuel Storage Outdoors • Fuel Cell Installed Inside and Integrated with Rectifiers & Battery String • Optional Indoor Fuel Storage • No External Impact to Shelter • Fuel Storage Room • Fuel Cell Installed in Equipment Room Rack Mountable Indoors Outdoor Fuel Storage

16. Installations: Bahamas Telephone Company • First Installations August 2004 • Rollout Underway • Wireline & wireless sites • One to three kilowatts – 48kWh runtime • Backup Power • OPM & DLC sites • Neighborhoods, industrial, remote • Frequent Power Outages • Hurricanes • Poor power infrastructure

17. Fuel Cells as Backup Power • Reliability:ReliOn fuel cells have been thoroughly tested resulting in measured reliability and availability of 99.8%. • Results in revenue protection • Cost:Factoring in capital and operational costs, fuel cells are cost effective compared to batteries or generator sets. • Lower life cycle costs • Environmental:Hydrogen fuel cells are quiet and clean, producing only heat and water as by-products. Compressed hydrogen is proven and safe without the need for spill containment or abatement. Fuel cells offer a modern, effective, forward-looking method for increasing network dependability, while reducing costs!

18. THANK YOU!!Fuel Cells: The Emerging Way of Ensuring Network Reliability Marcos Villanueva Vice President, International Business Development June 2006

19. Hydrogen Basics • Hydrogen First Discovered 1766 – Henry Cavendish • Named for being a “water former” • 1 Proton, 1 Electron • H2 – Diatomic Molecule, 2 Protons, 2 Electrons • Colorless, Odorless and has no Taste • Lightest Element in the Universe • Disperses Rapidly – 1/16 the density of air • Non-toxic • Environmentally-friendly H

20. 6” x 24” 33 cu-ft 29 lbs 1.0 kWh 6” x 37” 80 cu-ft 65 lbs 2.5 kWh 9” x 56” 197 cu-ft 125 lbs 6.1 kWh 9” x 60” 261 cu-ft 140 lbs 8.0 kWh Hydrogen Solutions Existing Solution = Compressed Hydrogen • AirGas, Air Liquide, Linde, Praxair, Air Products, & Locals 261 CUF 197 CUF Hydrogen is sold in high pressure steel or aluminum bottles which come in many different sizes. The actual storage capacity is dependent on bottle volume and fill pressure. 80 CUF 60” 33 CUF Example Bottles Sizes:

21. BATTERIES UTILITY POWER RESTORED 2-4 Hours FUEL CELL COMPRESSEDHYDROGEN REFILL MULTIPLE REFILLS 8-24 Hours UTILITY POWER INTERRUPTED BATTERY BRIDGE FUEL CELL COMPRESSEDHYDROGEN ENGINE GENERATOR (DIESEL/PROPANE) REFUEL 8-24 Hours 8-100+ Hours REFUEL (8-24Hr Window) TIME Backup Solutions

22. Environmentally Restrictive Applications Fuel Cells Solve Problems Encountered Due To • Air Resources Boards/Local Municipalities • Generator Emission & Noise Limits/Regulations • Fuel Containment Limitations • Generator Fuel Storage and Permitting • Potential Cost of Fuel Leaks • Battery Restrictions • Electrolyte Level Limitations – NFPA & Local Jurisdictions • Additional Costs for Spill Containment