HYDG Hydrogen Corp (MM)

Dutton Associates continues its coverage of HydroGen (Nasdaq:HYDG) maintaining a Speculative Buy rating and a $4 price target. The 10-page report by Dutton senior analyst Sally H. Wallack, CFA is available at www.jmdutton.com as well as from First Call, Bloomberg, Zacks, Reuters, Knobias, and other leading financial portals. HydroGen develops multi-megawatt hydrogen-powered phosphoric acid fuel cell (PAFC) systems utilizing technology acquired from Westinghouse Corporation and targets markets for power stations of over two megawatts. Fuel cells are a proven technology with important advantages relative to fossil fuel-based electricity generators: they are combustionless, emissions-free, quiet, energy efficient and have few moving parts. HydroGen reported 2007 grant revenue of $1.4 million and a net loss of $16.2 million or $1.27 per share. Full year 2006 revenue totaled $610,721 and the net loss was $7.42 million or $0.67 per share. Since HydroGen is a development stage company transitioning to the commercialization of its technology, we do not believe that current results reflect the Company�s long-term potential. In January 2008, HydroGen and Samsung Corporation entered into a series of strategic cooperation agreements for the sale, marketing, and distribution of hydrogen-powered fuel cell power plants in Asia, the Middle East, and certain other regions. We consider the Samsung agreements a validation of the excellence of the Company�s fuel cell technology and of its potential in international markets. We have been impressed with the steady and significant progress HydroGen has made on its business plan in the past two years. At the same time, we believe that HydroGen needs to raise additional capital in the next month in order to sustain operations and to continue to build on past successes. About Dutton Associates Dutton Associates is one of the largest independent investment research firms in the U.S. Its 30 senior analysts are primarily CFAs and have expertise in many industries. Dutton Associates provides continuing analyst coverage of over 140 enrolled companies, and its research, estimates, and ratings are carried in all the major databases serving institutions and online investors. The cost of enrollment in our one-year continuing research program is US $35,000 prepaid for 4 Research Reports, typically published quarterly, and requisite Research Notes. Dutton Associates received $70,000 from the Company for 8 Research Reports with coverage commencing on 5/09/2006. We do not accept payment of our fees in company stock. Our principals and analysts are prohibited from owning or trading in securities of covered companies. The views expressed in this research report accurately reflect the analyst's personal views about the subject securities or issuer. Neither the analyst's compensation nor the compensation received by us is in any way related to the specific ratings or views contained in this research report or note. Please read full disclosures and analyst background at www.jmdutton.com before investing.