Order for energy system based on fuel cells

Press Release
Morphic Technologies AB (publ)                                              
Karlskoga, December 14, 2007


Order for energy system based on fuel cells

Helbio S.A., Morphic Technologies' company in Greece, has taken an order for an
energy system for converting biogas from sewage for electrical power and
heating. The system produces 20 kW of electrical energy and 20 kW of heating
energy.

Within the system, heat or electricity is extracted from biogas, which is, in
turn, extracted directly from the sewage. The customer is Patras Municipal
Corporation for Water Supply and Waste Water Management. The facility is going
to be ready in June 2008 and will then be assessed for three months. Apart from
Helbio's patented reformers, the system includes a purification filter for the
biogas, a 20 kW fuel cell, and a voltage converter for adapting the fuel cell's
output voltage to the electricity network. The electrical energy is consumed
locally within the water treatment plant, and the heating energy produced is
used for making the purification process in the water treatment plant more
efficient. After the planned evaluation period, interest has been shown in
additional systems for considerably greater outputs, since this pilot plant only
uses a fraction of the biogas extracted.

“The system constitutes a typical example of the energy systems that we are now
starting to offer the market. Sewage purification is only one area in which the
combined reformer/fuel cell system can be used directly. Incineration plants,
garbage stations, industries and agriculture are other prioritized areas. The
plant will naturally become an important reference facility in the global
marketing of our various energy systems”, says Jonas Eklind, President and CEO
of Morphic Technologies.

Since 2005, intensive development work has been carried out within Morphic
Business Development concerning eco-friendly energy systems that make it
possible to produce electricity, heating and hydrogen locally.  A new type of
energy system is being created by utilizing wind power, solar energy and biogas
in energy systems designed around reformers and fuel cells. The systems involve
a completely new way of converting, storing and using renewable energy. 

About Helbio
Since it was established in 2001, Helbio has attained a leading position as
regards the development of technology for producing hydrogen gas
cost-effectively. The core of Helbio's competence comprises unique know-how
within catalyzer technology, combined with innovative, patented technical
solutions for “reformers” which in combination permit the development of systems
for converting liquid and gaseous fuels such as alcohols and hydrocarbons. The
strength of this technology lies in its high level of efficiency, low production
costs and, perhaps especially, the opportunity it provides for producing
hydrogen locally. Two of the factors that have long been obstacles to a wider
distribution of hydrogen technology are thereby eliminated - high production
costs and difficulties linked to distribution. 

In August 2007, Morphic Technologies AB acquired a 55 % shareholding in Helbio.
The acquisition means that Morphic gains access to competence that will hasten
the introduction onto the market of Morphic's energy systems, which are assessed
as having major commercial potential.



Johannes Falk, Information and Investor Relations Manager, Morphic Technologies
AB
Phone: +46 (0)706- 76 73 93, E-mail: johannes.falk@morphic.se.

Morphic Technologies is a Swedish industrial group that specializes in energy
systems for renewable electricity production as well as resource-light
production techniques for efficient component manufacture. The operations are
located in Sweden (Karlskoga, Filipstad, Kristinehamn and Göteborg) as well as
in Greece and Italy. The Company's class B shares are listed on the Stockholm
Stock Exchange's trading site, First North, with Remium Securities as Certified
Advisor. For more information, see www.morphic.se

DISCLAIMER: THIS DOCUMENT IS A TRANSLATION FROM THE SWEDISH ORIGINAL. NO
GUARANTEES ARE MADE THAT THE TRANSLATION IS FREE FROM ERRORS.