Power Air enters into joint venture in Korea

California fuel cell maker Power Air (BULLETIN BOARD: PWAC) is forming a joint venture with a Korean based company.

The new Korean-based company is to be called H-Plus PAC. It will develop, manufacture, and commercialize back-up power systems for the Korean and Asian markets, using zinc air fuel cell ("ZAFC") stacks supplied by Power Air Corporation as the power source.

Power Air's Korean partner H-Plus Eco will contribute up to 5 Billion KRW ($5.4M USD) to the venture, and Power Air will license its zinc air fuel cell technology to the new company.

"Now that the business terms have been defined and agreed on, we can focus on regulatory approvals, start-up, and execution," said Remy Kozak, President and CEO of Power Air.

Under the terms of the agreement, Power Air and H-Plus Eco are to establish the joint venture within six months.

Initial applications will include portable back-up generators followed by telecom and UPS back up power. Power Air and H-Plus plan to demonstrate a prototype generator at the Fuel Cell Expo 2007 in Tokyo, Japan on February 8, 2007.

Power Air's shares were up 6% in mid-day trading today.

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