Hydrogenics Signs New Agreement With John Deere to Advance the Commercialization of Fuel Cells

Provides a Path to Advance the Technical Development of Fuel Cell Systems and Achieve the Required Commercialization Milestones

TORONTO, July 28, 2004 -- Hydrogenics Corporation (Nasdaq: HYGS; TSX: HYG), announced today that it has entered into a five-year agreement with Deere & Company (NYSE: DE) regarding continued research and development efforts concerning the use of hydrogen and fuel cells in commercial vehicles. The five-year agreement incorporates both qualitative and quantitative commitments, and builds on the success of earlier joint projects involving the integration of Hydrogenics' HyPM fuel cell power module technology into Deere vehicles. Earlier this year Hydrogenics launched its off-road mobility initiative in the belief that these applications present earlier viable markets for hydrogen fuel cells than broader mass vehicular applications such as the automobile. Deere is a renowned international supplier of equipment and vehicles to a wide range of such early-adopter markets, including, but not limited to, the military, high-end grounds maintenance, agriculture, forestry and mining.

"Deere has proven to be exceptional in this effort, largely due to the company's recognition of the potential for fuel cell technologies to enhance their current and future product platforms," commented Pierre Rivard, Hydrogenics' President and Chief Executive Officer. "Broadening our relationship with Deere is an important milestone towards achieving fuel cell commercialization. Through this agreement we expect to transition our products from R&D prototypes, or demonstration units, to robust commercial products."

Under this Agreement, Deere and Hydrogenics will collaborate on both fuel cell developments and engineering to integrate them into vehicle systems.

About Hydrogenics

Hydrogenics Corporation ( http://www.hydrogenics.com ) is a leading clean power generation company, engaged in the commercialization of hydrogen and fuel cell technology, and test stations for fuel cells. The company is building a sustainable business, in a potentially "game changing technology" for transportation, stationary and portable power. Hydrogenics, based in Mississauga, Ontario, Canada, has operations in British Columbia, (Canada), Japan, the United States and Germany.

This release contains forward-looking statements within the meaning of the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Law of 1995. These statements are based on management's current expectations and are subject to changes in the competitive environment adversely affecting the products, markets, revenues or margins of Hydrogenics' business. Readers should not place undue reliance on Hydrogenics' forward-looking statements. Investors are encouraged to review the section captioned "Risk Factors" in Hydrogenics' registration statement on form F-10 filed with the Securities and Exchange Commission on February 3, 2004 for a more complete discussion of factors that could affect Hydrogenics' future performance. Hydrogenics undertakes no obligations to revise or update any forward-looking statements in order to reflect events or circumstances that may arise after the date of this release.