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Hydrogenics Corporation, a leading developer and manufacturer of hydrogen generation and fuel cell products, has entered into a strategic alliance with CommScope, Inc., a global leader in infrastructure solutions for communications networks, which calls for the development and distribution of specialized fuel cell power systems and includes an equity investment in Hydrogenics.

Under the terms of the agreement, CommScope and Hydrogenics will jointly develop next-generation power modules for telecom-related backup power applications, to be incorporated by CommScope in its products sold to customers worldwide.

   “This is a very exciting day for Hydrogenics,” said Daryl Wilson, Hydrogenics’ president and CEO. “The agreement with CommScope strengthens our existing partnership and lays the foundation for a strategic relationship dedicated to penetrating the large and growing market for telecom backup power systems. We have already worked closely with CommScope in India, North America and Europe, and both companies see strong potential demand for power modules that address opportunities within the booming cell phone infrastructure around the globe. In that vein, we will work on developing a broader range of products at various power levels, aiming for more attractive solutions and better economies of scale for our customers.”

“We are extremely pleased to be taking this next step with Hydrogenics, forging a long-term product development partnership,” said Ted Hally, executive vice president and chief commercial officer, CommScope. “CommScope firmly believes in the market for fuel cell backup power systems. Hydrogenics’ fuel cell technology within this space offers the most attractive and robust application, and they have many years of experience in systems design and integration. This gives us confidence that, working together, our power management solutions will prove an asset to telecom providers around the world.”

Under the agreement, CommScope will purchase from Hydrogenics common shares in four tranches, up to a maximum of 2,186,906 shares for a maximum aggregate purchase price of $8,500,000. The first tranche, which is expected to close on August 12, 2010, will consist of 879,393 common shares for an aggregate purchase price of US$3,237,046 (US$3.68 per share).  Upon closing of the first tranche, CommScope will own approximately 19.98% of the current issued and outstanding common shares of the company.

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