Plug Power Closes Russian Deal

June 29, 2006

Plug Power Closes $217M Investment by Russian Joint Venture, Gains Capital and Market Access

LATHAM, N.Y. (AP) — Alternative energy product maker Plug Power Inc. (PLUG) said Thursday it closed on a previously announced $217 million investment by Smart Hydrogen, a joint venture of two Russian companies.

In exchange for the cash, investment firm Interros and nickel and palladium producer Norilsk Nickel received shares of Class B stock that are convertible into 39.5 million shares of common stock. The purchase price is $5.50 per share.The investment boosts Plug Power’s cash and marketable-securities holdings to $285 million.

The Russian companies are talking to Plug Power about technology development and market access. A team of Plug Power workers recently spent a week in Russia, the company said.

As part of the deal, the Russian investors can appoint four of the company’s 11 board members and have already put up three. Plug Power expects the fourth in the next several weeks.

Of the three, Sergey Polikarpov is director of the Smart Hydrogen joint venture, which was formed to invest in the global hydrogen economy, Sergey Batekhin is managing director of Interros and Joel Gross is a consultant to the telecommunications industry.

Plug Power rose 17 cents, or 3.7 percent, to $4.81 in midday trading on the Nasdaq. The company’s stock has ranged between $4.50 and $7.73 over the past 52 weeks.

Source: Yahoo

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