CLEVELAND, May 15, 2008 (GLOBE NEWSWIRE) -- HydroGen Corporation (Nasdaq:HYDG), a designer and manufacturer of multi-megawatt air-cooled phosphoric acid fuel cell (PAFC) systems, today announced its financial results for the quarter ended March 31, 2008. HydroGen Corporation is currently in the development stage and is expected to remain so for at least the next several quarters.

Recent Corporate and Operational Highlights

  *  Start-up of Commercial Demonstration Power Plant.  HydroGen
     Corporation successfully started up its first full-scale
     commercial demonstration fuel cell power plant at ASHTA
     Chemicals, Inc.'s chlor-alkali facility.  The start up of
     the PAFC plant, which uses by-product hydrogen to generate
     electrical power, positions the Company for near term
     commercial deployment of its multi-megawatt PAFC plants
     for the chemical industry.  In the testing completed since
     initial startup, the plant has demonstrated expected
     performance during various start-up, operational, and
     shut-down modes and power levels.

  *  Start-up of Coke Oven Gas Treatment Plant. HydroGen and its
     project partners have successfully started up a pilot coke
     oven gas (COG) treatment plant to process COG into hydrogen
     of sufficient purity to support PAFC power plant requirements.
     The pilot demonstration plant, which supports penetration
     efforts into this target market segment, is located at a
     potential customer's operating coke oven works. The pilot
     plant is currently in the middle of a multi-week reliability
     test run, and is processing gas directly from the potential
     customer's coke oven operations. Preliminary results indicate
     that the plant is effectively removing contaminants and is
     producing a hydrogen fuel stream meeting HydroGen's PAFC plant
     requirements.

  *  Progress on Multi-Megawatt PAFC Plant Design for First
     Commercial Sale.  The Company is working with an architect
     engineering firm to complete engineering and design efforts
     to support the Company's first planned sale of a multi-megawatt
     plant to Samsung Corporation. The design package, which
     includes process flow diagrams (including process simulations),
     process and instrumentation drawings, equipment specifications
     and data sheets, a preliminary hazardous operations study,
     and development of cost reduction strategies, is on schedule.

  *  Next Generation PAFC Product Development Team Established. An
     internal cross functional team has been established with the
     charter to identify next generation fuel cell module and
     balance of plant cost and power density improvements. Initial
     design and sourcing strategies have identified an achievable
     reduction of 50% in module costs.  Similar work that targets
     balance of plant improvements is underway.

  *  Development of Low Cost-High Volume Manufacturing. Progress
     has been made in the development of lower cost, high volume
     manufacturing approaches which will be implemented in
     HydroGen's advanced manufacturing plant that is scheduled
     to come on line in late 2009.  A prototype of an automated
     stack assembly line has been developed and successfully tested.
     This equipment routes all completed stack components, including
     plates and electrodes, and performs all cell and stack assembly
     operations automatically. Additionally, the Company has placed
     under test electrode materials manufactured utilizing a
     newly-developed high volume catalyst deposition process,
     using conventional, low capital cost equipment. In addition
     to cost reductions, HydroGen expects improvement in quality
     and repeatability of these manufacturing operations.

  *  Advanced Electrode Development. Development of advanced
     electrode materials has progressed during the quarter. HydroGen
     has accumulated over 20,000 cumulative hours of small scale
     evaluation testing of first and second generation nano-catalyst
     materials, including the lead cell which has operated for
     nearly 4,000 hours.  Advanced electrodes based on nano-materials
     are expected to play an important role in cost reductions and
     lifetime performance improvements in HydroGen's longer range
     design and manufacturing plans.

2008 First Quarter Results

For the quarter ended March 31, 2008, HydroGen's net loss was $5.2 million, or $(0.41) per basic and diluted share, based on the weighted average of 12,769,904 common shares outstanding. This compares with a net loss of $3.1 million, or $(0.25) per basic and diluted share for the quarter ended March 31, 2007, based on the weighted average of 12,769,904 common shares outstanding.

The net loss for the quarter was due primarily to an increase in research and development expenses which amounted to $3.6 million in the first quarter 2008 compared to $2.3 million in the first quarter 2007. The increase in research and development expenses was due to the acceleration of the Company's efforts related to its commercial demonstration of its air-cooled phosphoric acid fuel cell module technology, as well as the ramp-up of manufacturing activities.

HydroGen's balance of cash, cash equivalents and short-term investments at March 31, 2008, totaled $2.6 million, as compared to a balance totaling $8.1 million at December 31, 2007. Spending on research and development for fiscal 2008 first quarter amounted to $3.6 million, increasing more than 55% over the first quarter of 2007. As of May 13, 2008, HydroGen had approximately $1 million in cash and will require additional capital to continue operations past May 30, 2008. The Company is in active discussions with our investment bankers and investors and is pursuing a private placement for financing. While the Company cannot assure that we will be able to conclude a financing, management is focused on concluding this financing in the timeframe necessary to continue operations.

"In the first quarter of this year we built on the progress made in 2007. We believe we have in place a strong foundation for further strategic, operational and technological development," said John Freeh Chief Executive Officer of HydroGen Corporation. "I am pleased with the startup and performance of the ASHTA plant thus far. This demonstration is one of HydroGen's most important achievements and, in conjunction with our strategic partnership with Samsung Corporation, positions us to become a global player in the growing distributed generation market for electricity and in the movement towards clean, hydrogen- and natural gas-based power generation."

About HydroGen Corporation

HydroGen Corporation is a manufacturer of multi-megawatt fuel cell systems utilizing its proprietary 400 kW phosphoric acid fuel cell (PAFC) technology. HydroGen's fuel cell technology, originally developed by Westinghouse Corporation, offers a multi-megawatt, zero-emission power generation product that supports the growth of industrial distributed energy. The Company targets market applications where hydrogen is currently available as well as applications that will utilize natural gas and other gaseous hydrocarbon fuel sources.

The HydroGen Corporation logo is available at http://www.primenewswire.com/newsroom/prs/?pkgid=3977

Forward-Looking Statements

Except for historical information contained herein, the statements in this release are forward-looking and made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are inherently unreliable and actual results may differ materially. Examples of forward-looking statements in this news release include statements regarding HydroGen's anticipated economically competitive fuel cell systems. Factors which could cause actual results to differ materially from these forward-looking statements include such factors as fluctuations in demand for HydroGen's products, HydroGen's ability to maintain strategic business relationships, the impact of competitive products and pricing, growth in targeted markets, the adequacy of HydroGen's liquidity and financial strength to support its growth, and other information that may be detailed from time to time in HydroGen's filings with the United States Securities and Exchange Commission. HydroGen undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

                  HYDROGEN CORPORATION AND SUBSIDIARY
                     (A Development Stage Company)
                 CONDENSED CONSOLIDATED BALANCE SHEETS

                                        MARCH 31,         DECEMBER 31,
                                          2008               2007
                                       -----------        -----------
                                      (unaudited)
 ASSETS
 ------

 CURRENT ASSETS
 --------------
   Cash and cash equivalents           $ 2,641,075        $ 8,065,758

   Accounts receivable                     344,342            165,628

   Other current assets                  1,330,886          1,837,657
                                       -----------        -----------

     TOTAL CURRENT ASSETS                4,316,303         10,069,043

   Property and equipment, net           4,850,966          4,799,588

   Other assets                             66,433             66,433
                                       -----------        -----------
     TOTAL ASSETS                      $ 9,233,702        $14,935,064
                                       ===========        ===========


 LIABILITIES AND SHAREHOLDERS'
  EQUITY
 -----------------------------

 CURRENT LIABILITIES
 -------------------
   Accounts payable and accrued
    expenses                           $ 2,274,872        $ 3,094,511
   Capital lease obligations,
    current portion                        104,268            102,804

                                       -----------        -----------
     TOTAL CURRENT LIABILITIES           2,379,140          3,197,315

 LONG-TERM LIABILITIES
 ---------------------
   Capital lease obligations,
    net of current portion                  48,536             74,813

                                       -----------        -----------
     TOTAL LIABILITIES                 $ 2,427,676        $ 3,272,128
                                       ===========        ===========
   Commitments

 SHAREHOLDERS' EQUITY
 --------------------
   Common stock, par value
    $0.001, authorized 65,000,000
    shares, 12,769,904 issued
    and outstanding at March
    31, 2008 and December 31,
    2007.                                   12,770             12,770

   Additional paid-in capital           43,540,416         43,180,779

   Deficit accumulated during
    the development stage              (36,747,160)       (31,530,613)
                                       -----------        -----------
     TOTAL SHAREHOLDERS' EQUITY          6,806,026         11,662,936
                                       -----------        -----------
     TOTAL LIABILITIES AND
      SHAREHOLDERS' EQUITY             $ 9,233,702        $14,935,064
                                       ===========        ===========


                  HYDROGEN CORPORATION AND SUBSIDIARY
                     (A Development Stage Company)
           CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)


                                                         NOVEMBER 11,
                                                             2001
                             FOR THE QUARTERS ENDED      (INCEPTION)
                                    March 31,              THROUGH
                           --------------------------     March 31,
                              2008           2007            2008
                           -----------    -----------    ------------
 Grant Revenue             $   319,342    $   436,065    $  2,511,961

 Research and development
  expenses                   3,552,349      2,290,489      18,566,509

 Costs and expenses
  (including stock-based
  compensation expense of
  $359,637, $120,053, and
  $2,770,782 respectively)   2,027,169      1,556,244      20,969,513
                           -----------    -----------    ------------

 LOSS FROM OPERATIONS       (5,260,176)    (3,410,668)    (37,024,061)

   Interest and other
    income                      51,453        268,993       2,106,803

   Interest and other
    financing charges           (7,824)        (3,892)       (806,091)

   Charge for repricing
    conversion price of
    convertible debt                --             --        (875,000)
                           -----------    -----------    ------------

 NET LOSS                  $(5,216,547)   $(3,145,567)   $(36,598,349)
                           ===========    ===========    ============

   Weighted average common
    shares outstanding
    (basic and diluted)     12,769,904     12,769,904
                           -----------    -----------

     Net loss per share
      (basic and diluted)  $     (0.41)   $     (0.25)
                           -----------    -----------

CONTACT:  HydroGen Corporation
          Scott Schecter, Chief Financial Officer
          (212) 672-0380 x 3002
          sschecter@hydrogenllc.com
         
          Makovsky + Company
          Investor Relations
          Hulus Alpay
          (212) 508-9600
          halpay@makovsky.com