Greetings and welcome to Plug Power’s 2008 fourth quarter and year end conference call. At this time all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. (Operator Instructions) It is now my pleasure to introduce your host, Cathy Yudzevich, Manager of Investor Relations for Plug Power. Thank you. You may begin.

Good morning. Thank you for joining Plug Power to discuss our 2008 fourth quarter and year end results. Andy Marsh, CEO and Gerry Anderson, CFO will be on this call. The call will be archived on our website, at www.plugpower.com in the Investors Section, under ‘Presentations.’ This conference call will contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including but not limited to expectations regarding revenues and product orders for 2009. These statements are based on current expectations that are subject to certain assumptions, risks and uncertainties, many of which are difficult to predict, are beyond our control, and that may cause our actual results to differ materially from the expectations in our forward-looking statements. These risks include without limitation, the timing and quantity of orders, shipments and installations of our products; our ability to develop commercially viable energy products, the cost and timing of developing our products, market acceptance of our products and our ability to lower the cost of our products and demonstrate their reliability. Other risks and uncertainties are discussed under item 1-A risk factors in Plug Power’s annual report on Form 10-K for the fiscal year ended on December 31, 2007, as filed with the SEC on March 17, 2008, and in the reports we file from time-to-time with the SEC. Also, please refer to our Annual Report on Form 10-K, for the fiscal year ended on December 31, 2008, which will be filed today with the SEC. Plug Power does not intend to, and undertakes no duty to update any forward-looking statements as a result of new information or future events. It is now my pleasure to introduce Andy Marsh.

Thank you. Cathy. Good morning everyone and thank you for joining our call. Last year, the increasingly challenging economic environment tested the result of the companies worldwide. Despite this ongoing recession, I can only say that I represent a company that continues to meet all challenges head-on. In that spirit, I would like to start with the announcement that Plug Power successfully fulfilled each of its 2008 milestones. After discussing these achievements, I am going to review the individual successes of our lines of business. Finally, I’d like to lay out our strategy for building on these successes in 2009. When I have finished setting out these 2009 milestones, Gerry Anderson will lead the discussion of our 2008 fourth quarter and full year financial results. We will then open up today call to questions. Last August Plug Power set three milestones. First, secure between 150 and 200 GenDrive orders in the second half of 2008; second, secured 50 GenCore orders in the second half of 2008; third, limit operating net cash consumed to US $55 million to US $60 million. Plug Power surpassed its first milestone by booking 326 new GenDrive orders in the third and fourth quarter of 2008, bringing the yearly orders for GenDrive to 358 units. Our ability to exceed this milestone reinforces the strength of our decision to focus available resources on the accelerating market adoption of our product in the material handling market. Accomplishing our second milestone, 52 new GenCore orders were placed in the second half of 2008, bringing our total to 109. While Plug Power met its 2008 GenCore sales targets, we have not yet witnessed the market pull necessary to generate meaningful revenue where a high availability electrical grid exists. Management continues to assess and monitor the backup power market for traction,…

Thank you, Andy and good morning everyone. I’d like to follow on to some of Andy’s comments on our products and add some additional insight into our order and shipment flow for the quarter and the year. As Andy noted, we met our milestone for GenDrive orders which included 293 unit orders in the fourth quarter and 358 unit orders for the full year. We also shipped 132 units during 2008 and ended the year with a GenDrive backlog of 341 units. On the GenCore side, our fourth quarter included 41 unit orders and we tallied 109 unit orders and 146 shipments for the year, with an ending backlog of 140 units. Additionally, during 2008 we had both five unit orders and shipments for GenSys units. For the full year we had 472 total unit orders, a 225% increase over the prior year and 283 unit shipments exceeding prior year by 20%. The invoiced value of our 2008 unit shipments was $6 million and our year end backlog of 481 units has an estimated invoice able value of $8.2 million. This includes $1.1 million for 45 GenDrive units that have been pre-funded under various government projects. We would also point out that our backlog, which is up 58% or 176 units from 2007 year end, is now for the first time comprised largely of GenDrive units, which is indicative of our growing momentum in this applications space. Turning to our statement of operations, total revenue for the fourth quarter was $5.3 million, of which $1.4 million was derived from products and services and $3.9 million attributable to research and development contracts. For the full year, we had $17.9 million in revenue, which represents a 10% increase over the prior year. This increase was driven by improving product and service revenue,…

Operator, we’d like to go to the Q-and-A please.

Thank you. (Operator Instructions) Our first question comes from the line of Trey Cobb with Stephens.

Good morning.

Good morning.

Good morning, Trey.

My first question relates to what was obviously a very strong quarter for GenDrive orders. Could you talk a little bit about the driving factors behind the pickup and whether that momentum has carried forward into 1Q?

Sure, Trey. If you take it from a big picture point of view, as we’ve been stating since last June, the value proposition for GenDrive products is strong. We can sell customers on productivity improvements, as well as a greener footprint for their facility. Since joining the company, we have really built out the sales team for the material handling industry to be able to position those products with our customers. The day when I joined the company, we did not have a structured sales organization. Today, we have over 25 individuals involved in sales, service and Hydrogen infrastructure, all reporting to the VP of Sales and Marketing. That organization did not exist when I joined PLUG. So it’s a combination of strong value propositions and this reach out to customers. In the first quarter of the year, we will not have a strongest quarter of the fourth quarters shipping GenDrive products, but the funnel is large and we have a number of deals that we expect that will close over the coming 60 to 90 days, to allow us to continue expansion of the market. We remained bullish. I think one last item and I spoke about it briefly, but I believe it is important. In the recent ARRA Act, the tax credit also now offers an option for the individuals to take a grant, and so instead of having a 30% tax credit, many of our customers can’t take advantage of tax credits. The 30% grant allows them in 2009, 2010, to receive a cash payment within 60 days, which we actually also believe will help us grow this business.

That was helpful, and then Andy could you revisit kind of the commercialization outlook for the product? Are you looking for a handful of 100 unit orders from the few key customers and then if you could talk a little bit about how 2010 looks?

Right; I think you hit on a good point Trey. If you look at this business in the manufacturing sector, single orders need to be in the range of 45 to 50 units for a new facility to provide a strong value proposition and that’s because of the cost of the hydrogen infrastructure. When one takes a look at food distribution, orders need to be in the range of 50 to 150 units. So, I would expect our orders will be in these large buckets. So, we’re projecting X number of orders this coming year and that may be coming from four or five different customers. So, I don’t expect that you’ll see fives and 10s units, except maybe for some trials. I think what’s more important is that we’re looking to have progress with customers who have multiple distribution centers. For example, our unit for 70 units in December, which I can’t announce the customer, that customer actually has hundreds of distribution centers and so that really allows you to kind of -- how do you go scale this business to make it larger. For 2010 Trey, we have not yet signed up for numbers. One of the items you heard from my conference call though was that our fourth objective was to really layout to the market by the end of the year, that path to profitability. A portion of that path obviously is that rapid revenue growth in the material handling market to allow us to have a projection of when profitability will be realized. I think 2010, based on macroeconomic conditions certainly, with the level of field trials we have going on, with the level of progress we have going on with many customers, I would expect that we’ll continue to see growth. I hope that answered your question, Trey.

It did, it was very helpful. Then for Gerry, you’ve obviously made significant progress in reducing the burn, given the $33 million to $37 million guidance for next year. How should we be thinking about 1Q ‘09 and do you expect any additional goodwill restructuring charges going forward?

Well, first to answer the latter part Trey. No, we do not expect to have any additional restructurings or goodwill impairment. Our intent obviously is to grow this business going forward. In terms of the cash target, the $33 million to $37 million, we are confident that we will live up to our 2009 commitment. It is a challenge to try to forecast that by quarter due to some of the seasonality and volatility of our orders. What I would say though is that we definitely expect by the end of the year to exit the year with a run rate that is well below that $33 million or $37 million target.

Okay and then as far as the breakdown of the 71 units that were shipped during the quarter, could you give the shipments for GenCore and GenDrive there?

Right. We had 25 GenCore shipments and 46 GenDrive shipments.

Okay great. Thanks, guys.

Our next question comes from the line of Julie Kotu with Simmons & Company. Julie Kotu - Simmons & Company: Hi guys, good afternoon.

Good afternoon. Julie Kotu - Simmons & Company: Sticking on the question on your cash burn guidance, I’m just wondering if you expect the quarterly cash use to be fairly even through the year or continue to trend down through 2009?

Again Julie, as we commented, we do have some volatility in not consistent order flow. So, it’s hard to gauge quarter-to-quarter, but what we will say is that we do expect to improve over the course of the year, such that by the end of 2009 we will exit with a better than $33 million to $37 million annual burn rate. Julie Kotu - Simmons & Company: Okay, great and then in terms of your guidance of 500 orders for 2009, can you give any insight on what that means for shipments?

I would expect Julie that the lead time for material handling type products is approximately five months from receipt of order. That’s just in general, mainly because of hydrogen infrastructure and the time to deploy. So, when I’m thinking about orders for our material handling business, I would think orders I received today will most likely be shipped within six months. Julie Kotu - Simmons & Company: Okay, great and one last question. On your new GenDrive product that you plan to release in Q4 of ’09; can you talk a bit about what you might expect in terms of margins compared to the existing product and when you might expect to see that product shipped?

Sure. As far as product margins go, we have made significant progress in reducing material costs, which represents 90% of our costs of shipping products for our GenDrive product. The F3 cost is reduced by approximately 25% to 30% and we planned by the second half of this year, for all products that we ship for GenDrive that their cost will be lower than their price, and that overtime and by the fourth quarter we will map out clearly to the market, that margin improvement over the coming year. So during this year, we’re flipping to where we start making money when we ship units. Julie Kotu - Simmons & Company: Okay perfect. Thanks, guys.

Okay.

You’re welcome.

Our next question comes from the line of Walter Nasdeo with Ardour Capital.

Thank you. Good morning.

Good morning Walter.

Could we circle back around to the goodwill for a second, please? Gerry, can you kind of walk me through the components of that and what else is left and what we can expect to see and just any other ramifications of how it looks like now?

Okay, sure Walter. Essentially the write-off, the $45.8 million, eliminates all the goodwill on our books. We still have some intangibles associated with acquired technological know-how, about $12 million as well as the value of customer relationships we’ve acquired which is about $800,000. So obviously at this point, absent any other business combinations or acquisitions, we would not have any additional goodwill write-off. I’m sure Walter, in compliance with GAAP accounting for FAS 142 and 144, we’ve had the independent impairment analysis done and there is a fairly high weighted average cost of capital and discount rate to measure our forward cash flows, which are still well above and more than two times what our book value is, but when you discount that and you also look at our market cap now at $109 million, it put that pressure on the balance sheet to write off the goodwill.

Alright and as I’m looking through these things, I’m seeing there’s still a taste of H power, is that correct, you still have H power goodwill?

No, that would be eliminated as well. The goodwill analysis that was done was at a total enterprise level for Plug Power.

Okay. Could you also just give me a quick update on the ARS situation and where that stands please?

Certainly Walter, on December 15 PLUG accepted an offer from UBS. We filed an 8-K on December 19 explaining that and the subject is additionally addressed in more detail in our 2008 10-K that will be filed later today and you’ll see in the balance sheet, we have access to liquidity and then there is a corresponding credit line to access that liquidity.

And is that in place now or will that be in place?

It’s in place now.

Very good; okay, thank you.

You’re welcome, Walter.

(Operator Instructions) Our next question comes from the line of Jeff Osborne with Thomas Weisel Partners.

Yes, good morning guys. I was just wondering if we could dig into the GenDrive being gross margin positive towards the end of the year. Is that due to the new release that you have or is that just due to the economies of scale? Can you just kind of walk through what the moving parts there are?

Right, and Jeff if one, we’ve certainly done learning throughout the year and we’re looking from when I joined the company to by the fourth quarter, costs will have gone down approximately by then, 45%. So, the additional savings, about three quarters are actually associated with simplification of our Class 1 and Class 3 designs; and approximately 25% is associated with greater scale. I do think Jeff, there is opportunity on the scale side, but we’ve learned a good deal about how for example, to move to simplify our hydrogen design internally in the units, we’ve simplified some of the electronics, some of that from my previous learning we’ve being able to move on into the company. So, I think that we’re seeing progress on simplification design and I believe there’s much greater opportunity in scale than we’ve been able to take advantage of yet.

Okay, and kind of along the same lines, I’m just curious on the decision not to provide the path to profitability now. It’s very reassuring that you’re willing to talk about that this year, but it sounds like it’s less of a manufacturing cost issue. Is it you just need to close some orders to get that visibility to have the comfort to elaborate on that on the market or is there some OpEx reshuffling? I’m trying to get a sense of the decision making process there.

Fair question Jeff. Since joining the company, I have wanted to make sure that when we set out goals and objectives to individuals, that the company will achieve those goals and objectives; and when one takes a look into 2010, 2011, the critical conversion of some customers during this year, for full scale, for a wider cut over of their facilities to our fuel cell power forklift truck opportunities, is really required to provide that clear visibility. There is the revenue activity, but there’s also the fine tuning of the material costs. I talked to you about the simplification design. I also believe especially in these economic times when you have a company that’s growing, suppliers are much more interested in doing business with you. So, instead of giving you a path and saying that in 2011 we will be profitable, when I tell you in the fourth quarter when we will be profitable, it will be based on a clear vision that PLUG knows it can achieve.

Okay. Two more quick ones, the R&D revenue for the company, you mentioned the 50/50 cost share programs. I’m just trying to get a sense of the pipeline of 13 new proposals, that you detailed last year, and the 18 that you currently have. Should we think about that being a similar gross margin negative level for you folks or is there any type of shift if you were to win all 13?

The 13 that we have in, nine of those are actually submitted by customers or customer prospects on material handling; which in that case we would be a supplier, which is much better for us, but again we have to wait until we see those mix of awards announced. In terms of the 18 programs that are carrying over into 2009, eight of those 18 have a 50% or higher cost share and again, historically we’ve been in a 140% to 150% of revenues. If everything was to go as planned on those 18 programs, we would probably be in that range.

Jeff I want to reemphasize a point Gerry made and a good deal of those programs are associated with market transformation, and they were submitted with customers who have large distribution facilities and multiple large distribution facilities. So today, we’re putting a good deal of focus for our government activity associated with making these products have large market acceptance instead of R&D, and that’s kind of a basic shift as the company’s grown and mature. We certainly are still doing technology development, but at least half of our submittals from a dollar point of view were actually associated with products that build systems at customer facilities, which should generate gross margin positive numbers for Plug Power.

Right, okay and the last one, I just may have missed it, but what was the stock based compensation total for the quarter and if you have the breakout of COGS and R&D and SG&A?

The total stock based compensation for the quarter was about $4.4 million; and I’m sorry Jeff, what do you want for…?

Just, how much was in cost of sales versus OpEx?

The entire $4.4 million on the stock based was in OpEx, about $1.9 million of the accelerated was in R&D and $400,000 of the accelerated was in SG&A. Our total COGS for the quarter was $5.1 million for the products and services and $6.9 million or $7 million for R&D contracts.

I’m just saying, of the stock based comp that wasn’t in the accelerated portion, do you happen to have that breakout?

That was $2.5 million and I’ll have to get back to you on that one, Jeff. I don’t know that one off the top of my head.

Okay. Thank you.

This concludes the question-and-answer session of today’s conference and I would now like to turn the call to Andy Marsh for any concluding remarks.

Well, thank you for your questions today. Before concluding this call, I would like to announce that Plug Powers 2009 Annual Meeting will be held at the Hilton Garden Inn in Albany, New York on May 20 at 10.00 am. As a final note, I recognize 2008 was a year of transition for Plug Power. I joined last April as a new CEO. Our company shifted focus to take advantage of accelerating material handling market opportunities and Plug Power employed significant cost cutting measures to accommodate our new business strategy. That said, this company continues to be a leader in the fuel cell industry, setting new standards for product development and customer satisfaction. Without a doubt, 2008 was a transitional year, but more important, Plug Power is ready and energized to build a strong business as we progress in 2009. Thank you for your time this morning.

This concludes today’s teleconference. You may disconnect your lines at this time. Thank you for your participation.