FuelCell Energy to Provide Direct FuelCell(R) Power Plant for Sheraton New York Hotel & Towers

DANBURY, Conn., - FuelCell Energy, Inc., (Nasdaq: FCEL) and its distribution partner, PPL EnergyPlus, a subsidiary of PPL Corporation (NYSE: PPL), announced today that they are providing a 250-kilowatt Direct FuelCell(R) (DFC(R)) power plant for installation at the Sheraton New York Hotel & Towers owned by Starwood Hotels & Resorts Worldwide, Inc. (NYSE: HOT), one of the largest hotel operators in the world.

The fuel cell power plant is expected to provide about 10 percent of the power and domestic hot water needs of the hotel. Delivery for the hotel unit is scheduled for this summer followed by a dedication of the DFC power plant shortly thereafter.

"The Sheraton in Manhattan is an excellent application for a DFC power plant due to its location and load profile," said Herbert T. Nock, Senior Vice President of Marketing and Sales of FuelCell Energy, Inc. "The clean and quiet operating characteristics of the power plant make it ideal for a congested urban setting like Manhattan, and the steady need for power at a hotel means that the fuel cell will be providing electricity and heat energy around the clock. We are delighted to be working with PPL and Starwood Hotels & Resorts in making hotel applications an emerging sustainable market for our DFC power plants."

The New York State Energy Research and Development Authority (NYSERDA) has committed to awarding $920,000 toward the project. This was one of the finalists selected for funding in 2002 under NYSERDA's combined heat and power program. The winners were selected after a rigorous evaluation to determine the likelihood of success as well as the economical and environmental benefits associated with the proposed projects.

"PPL is pleased to be providing Starwood its third efficient, reliable on-site DFC power plant," said Paul T. Champagne, president PPL EnergyPlus. "We are grateful to NYSERDA for having the vision to support these kinds of projects. PPL looks forward to future distributed generation opportunities throughout the state of New York."

This project will benefit from the recently enacted stand-by exemption provision in New York State. Effective February 1, 2004, Consolidated Edison of New York, Inc; Orange & Rockland Utilities, Inc.; New York State Electric and Gas Corporation; and Rochester Gas and Electric Corporation exempted DFC power plants from stand-by charges if the installation represents less than 15 percent of the customer's maximum potential demand.

The hotel industry is an excellent commercial application of FuelCell Energy's DFC power plants with their stable base load heat and power demand profile. PPL owns and operates DFC300A power plants at two other Starwood Resorts, the Sheraton Edison and the Sheraton Parsippany Hotels in New Jersey. In a 2000 study by the Energy Information Administration and Department of Energy, the estimated market potential for combined heat and power applications for hotels and motels in the United States is approximately 6,500 megawatts.

About Direct FuelCells

Direct FuelCells efficiently generate clean electricity at distributed customer locations, including hospitals, schools, universities, hotels and other commercial and industrial facilities, as well as in grid-support applications for utility customers. Direct FuelCells operate similar to large, continuously operating batteries except utilize a fuel to generate electricity, such as natural gas or digester gas from wastewater treatment facilities. DFC power plants are hydrogen generators, and because of this are ready today and do not require the creation of a hydrogen infrastructure. This high-efficiency technology generates more electric power from less fuel and with less carbon dioxide emissions than traditional combustion methods. The sub-megawatt fuel cell power plant is a collaborative effort using Direct FuelCell(R) technology of FuelCell Energy and the Hot Module(R) balance of plant design of MTU CFC Solutions, GmbH, a subsidiary of DaimlerChrysler.

About FuelCell Energy, Inc. - FuelCell Energy, Inc., based in Danbury, Connecticut, is a world leader in the development and manufacture of high temperature hydrogen fuel cells for clean electric power generation, currently offering DFC power plant products ranging in size from 250 kilowatts to 2 megawatts for applications up to 50 megawatts. Its subsidiary, Global Thermoelectric Inc., is a leader in the development of solid oxide fuel cell (SOFC) products and the world's largest manufacturer and distributor of thermoelectric stationary power generators for use in remote locations.

The Company has developed commercial distribution alliances for its carbonate Direct FuelCell technology with MTU CFC Solutions in Europe; Marubeni Corporation in Asia; Enbridge Inc. in Canada; Caterpillar, PPL Energy Plus, Chevron Energy Solutions and Alliance Power in the U.S. FuelCell Energy is developing Direct FuelCell technology for stationary power plants with the U.S. Department of Energy through its Office of Fossil Energy's National Energy Technology Laboratory. More information is available at www.fuelcellenergy.com.

About PPL Corporation - PPL Corporation, headquartered in Allentown, Pa., controls about 11,500 megawatts of generating capacity in the United States, sells energy in key U.S. markets, and delivers electricity to nearly 5 million customers in Pennsylvania, the United Kingdom and Latin America. The distributed generation arm of PPL EnergyPlus provides on-site energy management through the installation of fuel cells, microturbines/turbines and engine power plants. During 2003, fuel cells were installed in New Jersey, Massachusetts and Montana. More information is available at www.pplweb.com.

About Starwood Hotels and Resorts Worldwide, Inc. - Starwood Hotels and Resorts Worldwide, Inc. is one of the leading hotel and leisure companies in the world with more than 740 properties in more than 80 countries and 105,000 employees at its owned and managed properties. With internationally renowned brands, Starwood is a fully integrated owner, operator and franchisor of hotels and resorts including: Sheraton(R), Westin(R), The Luxury Collection(R), St. Regis(R), W(R) and Four Points(R) by Sheraton, as well as Starwood Vacation Ownership, Inc., one of the premiere developers and operators of high quality vacation interval ownership resorts. For more information, please visit www.starwood.com.

This news release contains forward-looking statements, including statements regarding the Company's plans and expectations regarding the development and commercialization of its fuel cell technology. All forward- looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected. Factors that could cause such a difference include, without limitation, the risk that commercial field trials of the Company's products will not occur when anticipated, general risks associated with product development, manufacturing, integration of the Company's acquisition of Global Thermoelectric Inc., changes in the utility regulatory environment, potential volatility of energy prices, rapid technological change, and competition, as well as other risks set forth in the Company's filings with the Securities and Exchange Commission. The forward- looking statements contained herein speak only as of the date of this press release. The Company expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any such statement to reflect any change in the Company's expectations or any change in events, conditions or circumstances on which any such statement is based.