12/8/2004 - H2SCAN SECURES $2.54 MILLION FROM CHRYSALIX ENERGY, PASADENA ANGELS AND TECH COAST ANGELS

Hydrogen-Specific Sensing Systems Provide Higher Accuracy and
Faster Detection, Reduce False Positives

VALENCIA, Calif. – December 8, 2004 – H2Scan™, the leading provider of hydrogen-specific leak detection and real-time process monitoring systems, today announced it has secured $2.54 million in Series B funding to expand its management team and increase sales, marketing and product development efforts. Investors in this round include Chrysalix Energy Limited Partnership, Pasadena Angels, Tech Coast Angels (TCA) and H2Scan’s founder and CEO.

“We believe H2Scan has the potential to be a dominant player in the large and growing market for hydrogen-specific sensing devices,” said Mike Walkinshaw, managing director, Chrysalix. “The uniqueness of H2Scan’s technology, capable management team and huge sales potential continue to make the company an attractive investment for us.” H2scan’s hydrogen-specific sensing systems essentially eliminate false readings by detecting the presence of hydrogen, with or without oxygen, against virtually any background gas. H2Scan’s technology works in seconds, even when hydrogen is present in concentrations of only 10 parts per million (PPM), over a wide range of temperatures and without cross-sensitivities to any other substances.

“H2Scan’s world class technology, Fortune 1000 customers and significant interest from large distribution channel partners are some of the reasons so many angels were interested in investing,” said Al Schneider, co-founder and vice chairman of the Pasadena Angels and member of the Executive Committee of TCA’s Los Angeles network. “We were happy to co-invest with a venture capital firm with extensive experience in the field and to be able to provide sufficient funds to enable H2Scan to achieve meaningful future milestones.”

In conjunction with the financing, Schneider and Dr. Ken Pickar, visiting professor of Mechanical Engineering at the California Institute of Technology and member of the Executive Committee of TCA’s Los Angeles network, will join the company’s Board of Directors.

“We are pleased to be funded by such valuable partners that offer us so much more than just capital,” said Dennis Reid, H2Scan’s founder and CEO. “Our angel investors have provided us with extremely beneficial feedback in the areas of technology, finance and sales, and Chrysalix continues to be an outstanding source of customer and partner contacts.”

About H2Scan
H2scan Corporation provides hydrogen-specific leak detection and real-time process monitoring systems based on proprietary technology from Sandia National Laboratories and additional inventions and enhancements from H2Scan’s engineers. H2scan offers leading edge technology in three retail product lines including: portable handheld devices with a low level detection of only 10 PPM; hydrogen-specific area monitors with virtually no cross sensitivities; and in-line real-time process monitors operating in temperatures up to 150 degrees C and providing accuracy and speed of response rates comparable to analyzers that cost several times more. For more information, visit www.h2scan.com.

About Chrysalix Energy
Chrysalix Energy Limited Partnership (www.chrysalix.com) is an early-stage venture capital firm focusing on fuel cell & hydrogen infrastructure technology companies and is a private equity joint venture between Ballard Power Systems, BASF Venture Capital, The BOC Group, The Boeing Company, Mitsubishi Corporation and Shell Hydrogen. Operating independently, Chrysalix offers a unique value proposition to its clients throughout the business planning, start-up and operations phases of development. Chrysalix provides early-stage funding to new companies as well as management
assistance, technological knowledge, organized networking with industry players and experience in the management of intellectual property.

About Pasadena Angels
The Pasadena Angels (www.pasadenaangels.com) is a group of more than 80 accredited entrepreneurial investors focused on counseling companies in the early stages of their growth and providing early-stage financing to promising new, technology-based ventures in the San Gabriel Valley and greater Los Angeles area. Pasadena Angel members have closed 25 early-stage financings with companies they have counseled since the organization was founded in 2000.

About Tech Coast Angels
The Tech Coast Angels, www.techcoastangels.com, is the largest angel investor network in the United States, providing funding and guidance to the most early-stage, high growth companies in Southern California. Since its inception in 1997, TCA members have personally invested $51 million in 80 companies and are the area’s major source of referrals to venture capital firms. TCA has leveraged its investments into more than $512 million in funding for TCA portfolio companies, by attracting venture capital firms as co-investors. TCA offers early-stage companies much more than capital; the group also mentors entrepreneurs and provides them with access to the contacts and knowledge of TCA’s more than 220 members in its three networks in Los Angeles, Orange County and San Diego.