FuelCell Energy Reports Fourth Quarter and Fiscal Year 2013 Results and Business Highlights

FuelCell Energy Reports Fourth Quarter and Fiscal Year 2013 Results and
Business Highlights

  *Record revenue for fiscal year 2013 – up 56 percent year-over-year
  *Bridgeport fuel cell park on schedule and producing power
  *59 megawatt South Korean fuel cell park completed on schedule and
    operating
  *Delivered first German-manufactured fuel cell power plant

DANBURY, Conn., Dec. 16, 2013 (GLOBE NEWSWIRE) -- FuelCell Energy, Inc.
(Nasdaq:FCEL), a global leader in the design, manufacture, operation and
service of ultra-clean, efficient and reliable fuel cell power plants, today
reported results for its fourth quarter and fiscal year ended October 31, 2013
along with an update on key business highlights.

Financial Results

FuelCell Energy (the Company) reported total revenues for the fourth quarter
of 2013 of $55.2 million compared to $35.4 million for the fourth quarter of
2012.

Product sales for the fourth quarter of 2013 totaled $36.2 million, comprising
$23.4 million of power plant revenue and fuel cell kit sales, and $12.8
million of power plant component sales and installation services, including
installation services for the Bridgeport fuel cell park. For the comparable
prior year period, product sales totaled $29.1 million, including $24.0
million of power plant revenues and fuel cell kit sales and $5.1 million of
power plant component sales and installation services.

Service and license revenues for the fourth quarter of 2013 totaled $15.4
million compared to $4.8 million for the comparable prior year period. During
the fourth quarter of 2013, the Company entered into a previously announced
revised Master Service Agreement with POSCO Energy, its South Korean partner,
whereby POSCO assumes more responsibility for servicing installations in Asia
that utilize power plants manufactured by POSCO Energy. FCE will perform
engineering and support services for each unit in the installed fleet and
receive quarterly fees as well as a royalty on each scheduled fuel cell module
exchange built by POSCO Energy and installed at any plant in Asia. Costs
incurred under the Master Service Agreement during the fourth quarter of
fiscal year 2013 of $10.1 million resulted in associated revenue recognized of
$10.2 million. Such costs primarily related to the provision of fuel cell
stacks to POSCO upon execution of the agreement to service the installations
under the ongoing service contract. Quarterly service revenue in 2014 is
forecasted to be in a range of $4.0 million to $6.0 million with quarterly
fluctuations impacted by the timing of scheduled fuel cell module exchanges.
Customer acceptance of the Bridgeport fuel cell park during the first quarter
of fiscal 2014 is expected to trigger the start of the associated $69 million
15 year service contract, which would contribute to a quarterly increase in
service revenues in fiscal year 2014.

Advanced technologies contract revenue was $3.6 million for the fourth quarter
of 2013 compared to $1.6 million for the fourth quarter of 2012. The increase
is primarily a result of solid oxide fuel cell commercialization programs,
particularly the unmanned aerial program with Boeing, which has been included
in the Company's financial results subsequent to the December 2012 acquisition
of Versa Power Systems.

Backlog totaled $355.4 million at October 31, 2013 compared to $318.9 million
at October 31, 2012.

  *Product sales backlog was $170.1 million at October 31, 2013 compared to
    $228.2 million at October 31, 2012. Product backlog in megawatts (MW)
    totaled 107.3 MW at October 31, 2013 compared to 150.7 MW at October 31,
    2012.
  *Service backlog was $166.8 million at October 31, 2013 compared to $78.5
    million at October 31, 2012. The service contract for the Bridgeport fuel
    cell park project accounted for a significant portion of the
    year-over-year growth.
  *Advanced technologies contracts backlog was $18.5 million at October 31,
    2013 compared to $12.2 million at October 31, 2012.

The fourth quarter 2013 gross profit of $2.6 million generated a 4.7 percent
gross margin compared to a gross profit of $0.9 million in the fourth quarter
of 2012 and a gross margin of 2.5 percent. The margin impact of the previously
referenced revised master service agreement with POSCO Energy and higher
aftermarket costs negatively impacted the gross margin in the quarter.

Loss from operations for the fourth quarter of 2013 was $7.0 million compared
to $8.4 million for the fourth quarter of 2012. Administrative and selling
expenses decreased year-over-year as the prior year period included business
development expenses that were non-recurring in the current year period.
Research and development expenses increased year-over-year resulting from
initiatives to continue to reduce the cost profile of large scale
multi-megawatt installations through consolidating certain aspects of the
balance of plant functions.

Net loss attributable to common shareholders for the fourth quarter of 2013
totaled $10.5 million, or $0.06 per basic and diluted share, or excluding the
non-cash fair value adjustment of $1.1 million required on the embedded
derivatives in the convertible notes, the adjusted net loss attributable to
common shareholders totaled $9.4 million or $0.05 per basic and diluted
share.For the comparable prior year period, net loss attributable to common
shareholders totaled $12.1 million or $0.07 per basic and diluted share or
$8.1 million and $0.05 per basic and diluted share on an adjusted basis.

Fiscal Year 2013

For the twelve months ended October 31, 2013, the Company reported revenue of
$187.7 million compared to $120.6 million for the prior year period, an
increase of 56 percent.Product sales were $145.1 million compared to $95.0
million for the prior year period.Service agreement and license revenues were
$28.1 million compared to $18.1 million for the prior year period.Advanced
technologies contract revenues totaled $14.4 million, compared to $7.5 million
for the prior year period.

For the twelve months ended October 31, 2013, gross profit was $7.1 million
compared to a gross profit of $0.4 million for the twelve months ended October
31, 2012.The gross margin for fiscal year 2013 was 3.8 percent.

Loss from operations for the twelve months ended October 31, 2013 was $29.8
million, compared to $32.1 million for the twelve months ended October 31,
2012.The year-over-year change in operating expenses includes increased
business development expenditures for the North American and European markets
and the consolidation of Versa Power Systems after its acquisition by the
Company, all of which contribute to future growth opportunities.As a
percentage of total revenues, total operating expenses decreased from 27.0
percent for the twelve months ended October 31, 2012 to 19.7 percent for the
twelve months ended October 31, 2013 reflecting the leverage of existing sales
and services infrastructure that supports higher revenue levels.

Net loss attributable to common shareholders for the twelve months ended
October 31, 2013 was $37.6 million or $0.20 per basic and diluted share, or
excluding the non-cash fair value adjustment required on the embedded
derivatives in the convertible notes, the adjusted net loss attributable to
common shareholders totaled $36.2 million or $0.19 per basic and diluted
share.For the comparable prior year period, net loss attributable to common
shareholders totaled $38.7 million or $0.23 per basic and diluted share or
$34.6 million and $0.21 per basic and diluted share on an adjusted basis.

Cash and cash equivalents and restricted cash

Cash and cash equivalents and restricted cash totaled $77.7 million at October
31, 2013.Net cash use for the fourth quarter of 2013 was $13.7 million,
including an $8.8 million increase in accounts receivable.Accounts receivable
includes $20.4 million related to the Bridgeport fuel cell park project, with
collection expected during the first quarter of fiscal year 2014.Capital
spending was $2.5 million and depreciation expense was $1.1 million for the
fourth quarter of 2013. 

Business Highlights and Strategy Execution

Market Update

"The size of our pipeline in both North America and Europe continues to
increase, but more importantly we have made significant progress towards
closure on a number of multi-megawatt projects in the pipeline," said Chip
Bottone, President and Chief Executive Officer, FuelCell Energy, Inc."We
evaluate our production levels weekly, coordinating closely with our order
closure expectations and the need to be able to execute on multi-plant
projects quickly, as we proved we can do by meeting the production and
installation schedule for the 15 megawatt Bridgeport fuel cell park project."

Multiple utilities in four U.S. states have recently issued over one gigawatt
of renewable power requests for proposals (RFP's) that all include fuel
cells.The Company is actively bidding these solicitations.Utility-scale
adoption is accelerating in South Korea with recent announcements by partner
POSCO Energy including a 20 megawatt project and a 40 megawatt project.These
recent actions in North America and Asia illustrate both the market potential
as well as the growing awareness of the value of clean distributed generation.
In addition, the Company is actively pursuing and developing opportunities
through its business partners.

"Based upon strong 2013 project development activity and regulatory approvals,
we anticipate closing over 30 megawatts of new orders in North America in the
first half of 2014. These, combined with our backlog from POSCO and service
commitments, will consume all of our anticipated production in fiscal year
2014," continued Mr. Bottone.

Operations update

"We began 2013 with North American production levels at an annual run-rate of
56 megawatts, smoothly increased the production rate to 70 megawatts during
the year, and expanded total capacity by about 11 percent through process
improvements to 100 megawatts annually," said Tony Rauseo, Chief Operating
Officer, FuelCell Energy, Inc."We are prepared to increase production levels
further as demand supports."

The Company maintained an annual production run-rate at the Torrington,
Connecticut production facility of approximately 70 megawatts during the
fourth quarter of 2013, producing 17.5 MW of cell components for fuel cell
kits and fuel cell power plants. 

The construction of the Bridgeport fuel cell park is on schedule and is
currently undergoing final commissioning.All five fuel cell plants are
producing power and power production from the organic rankine cycle turbine is
expected within days.Final acceptance is expected by the end of December
2013, as scheduled.The associated service contract, valued at approximately
$69 million over the 15 year project life, begins at customer acceptance.

All 21 DFC3000^® power plants are installed at the Gyeonggi Green Energy fuel
cell park in Hwasung City, South Korea.The project is on schedule and
delivering power to the electric grid and steam to a district heating system.
POSCO Energy constructed the fuel cell park in only twelve months
demonstrating the ability to add a significant level of renewable power near
where the power is used in a very short period of time.The facility is a
global showcase for distributed baseload electric grid support from
ultra-clean fuel cell power plants and a model for other regions of the
world.

The first German built fuel cell power plant was completed by FuelCell Energy
Solutions, GmbH (FCES) and delivered to the future Federal Ministry of
Education and Research office complex in Berlin, Germany during the fourth
quarter.FCES is managing the installation of the power plant and
commissioning is expected in mid-2014 once construction of the office complex
nears completion.FCES is the sales, manufacturing and service business for
the European Served Area for FuelCell Energy, Inc.

Advanced Technology update

The Company continues working towards commercialization of its solid oxide
fuel cell (SOFC) technology and distributed hydrogen generation capabilities,
utilizing global partners to build critical mass and to develop technology
platforms suitable for markets around the world.During the fourth quarter of
2013, the Company entered into the following:

  *$6.4 million agreement with the U.S. Department of Energy (DOE) to
    demonstrate a sub-megawatt SOFC plant configured for combined heat & power
    (CHP) output that is connected to the electric grid.
  *A multi-phase two year agreement to supply a demonstration solid-state
    electrochemical hydrogen separation (EHS) unit to a global chemical
    company for high efficiency separation of hydrogen from natural gas.Under
    the first phase, valued at approximately $1.1 million, the Company will
    deliver a remotely monitored CE-compliant EHS system.Successful
    completion of the first phase is expected to lead to subsequent funding to
    increase the size and scale of the system for the targeted industrial
    market.The technology provides a unique way to separate hydrogen from
    clean natural gas or renewable biogas in a process with relatively low
    energy consumption and without the need for pressurization or moving
    parts, leading to lower operating costs than current hydrogen separation
    technologies.Cost effective distributed hydrogen generation has
    attractive market potential.
  *The build phase of a DOE supported project to convert renewable biogas
    from agricultural waste into power utilizing a FuelCell Energy
    manufactured SOFC power plant at a dairy farm in California.The
    Sacramento Municipal Utility District (SMUD) will facilitate the
    installation and operation of the SOFC power system.

Cautionary Language

This news release contains forward-looking statements within the meaning of
the safe harbor provisions of the Private Securities Litigation Reform Act of
1995, including, without limitation, statements with respect to the Company's
anticipated financial results and statements regarding the Company's plans and
expectations regarding the continuing development, commercialization and
financing of its fuel cell technology and business plans. All forward-looking
statements are subject to risks and uncertainties that could cause actual
results to differ materially from those projected. Factors that could cause
such a difference include, without limitation, changes to projected deliveries
and order flow, changes to production rate and product costs, general risks
associated with product development, manufacturing, changes in the regulatory
environment, customer strategies, unanticipated manufacturing issues that
impact power plant performance, changes in critical accounting policies,
potential volatility of energy prices, rapid technological change,
competition, and the Company's ability to achieve its sales plans and cost
reduction targets, as well as other risks set forth in the Company's filings
with the Securities and Exchange Commission. The forward-looking statements
contained herein speak only as of the date of this press release. The Company
expressly disclaims any obligation or undertaking to release publicly any
updates or revisions to any such statement to reflect any change in the
Company's expectations or any change in events, conditions or circumstances on
which any such statement is based.

About FuelCell Energy

Direct FuelCell® power plants are generating ultra-clean, efficient and
reliable power at more than 50 locations worldwide. With more than 300
megawatts of power generation capacity installed or in backlog, FuelCell
Energy is a global leader in providing ultra-clean baseload distributed
generation to utilities, industrial operations, universities, municipal water
treatment facilities, government installations and other customers around the
world. The Company's power plants have generated more thantwo billion
kilowatt hours of ultra-clean power using a variety of fuels including
renewable biogas from wastewater treatment and food processing, as well as
clean natural gas.For more information, please visit www.fuelcellenergy.com

See us on YouTube

Direct FuelCell, DFC, DFC/T, DFC-H2 and FuelCell Energy, Inc. are all
registered trademarks of FuelCell Energy, Inc. DFC-ERG is a registered
trademark jointly owned by Enbridge, Inc. and FuelCell Energy, Inc.

Conference Call Information

FuelCell Energy management will host a conference call with investors
beginning at 10:00 a.m. Eastern Time on December 17, 2013 to discuss the
fourth quarter and full year 2013 results. An accompanying slide presentation
for the earnings call will be available
athttp://fcel.client.shareholder.com/events.cfmimmediately prior to the
call.

Participants can access the live call via webcast on the Company website or by
telephone as follows:

  *The live webcast of this call will be available on the Company website at
    www.fuelcellenergy.com.To listen to the call, select 'Investors' on the
    home page, then click on 'events & presentations' and then click on
    'Listen to the webcast'
  *Alternatively, participants in the U.S. or Canada can dial 877-303-7005
  *Outside the U.S. and Canada, please call 678-809-1045
  *The passcode is 'FuelCell Energy'

The webcast of the conference call will be available on the Company's
Investors' page at www.fuelcellenergy.com.Alternatively, the replay of the
conference call will be available approximately two hours after the conclusion
of the call until midnight Eastern Time on December 20, 2013:

  *From the U.S. and Canada please dial 855-859-2056
  *Outside the U.S. or Canada please call 404-537-3406
  *Enter confirmation code 17928256

FUELCELL ENERGY, INC.
Consolidated Balance Sheets
(Unaudited)
(Amounts in thousands, except share and per share amounts)

                                                      October 31, October 31,
                                                      2013        2012
ASSETS                                                            
Current assets:                                                   
Cash and cash equivalents - unrestricted               $ 67,696    $ 46,879
Restricted cash and cash equivalents – short-term      5,053       5,335
License fee receivable                                 --          10,000
Accounts receivable, net                               49,116      25,984
Inventories, net                                       56,185      47,701
Other current assets                                   11,279      4,727
Total current assets                                   189,329     140,626
                                                                 
Restricted cash and cash equivalents – long-term       4,950       5,300
Property, plant and equipment, net                     24,225      23,258
Goodwill                                               4,075       --
Intangible assets                                      9,592       --
Investment in and loans to affiliate                   --          6,115
Other assets, net                                      5,465       16,186
Total assets                                           $ 237,636   $ 191,485
                                                                 
LIABILITIES AND EQUITY                                            
Current liabilities:                                              
Current portion of long-term debt                      $ 6,931     $ 5,161
Accounts payable                                       24,535      12,254
Accounts payable due to affiliate                      --          203
Accrued liabilities                                    21,912      20,265
Deferred revenue                                       51,857      45,939
Preferred stock obligation of subsidiary               1,028       1,075
Total current liabilities                              106,263     84,897
                                                                 
Long-term deferred revenue                             18,763      15,533
Long-term preferred stock obligation of subsidiary     13,270      13,095
Long-term debt and other liabilities                   52,675      3,975
Total liabilities                                      190,971     117,500
Redeemable preferred stock (liquidation preference of  59,857      59,857
$64,020 at October 31, 2013 and October 31, 2012)
Total (Deficit) Equity:                                           
Shareholders' (deficit) equity                                    
Common stock ($.0001 par value; 275,000,000 shares
authorized; 196,310,402 and 185,856,123 shares issued  20          18
and outstanding at October 31, 2013and October 31,
2012, respectively)
Additional paid-in capital                             758,656     751,256
Accumulated deficit                                    (771,189)   (736,831)
Accumulated other comprehensiveincome                 101         66
Treasury stock, Common, at cost (5,679 shares at       (53)       (53)
October 31, 2013 and October 31, 2012)
Deferred compensation                                  53          53
Total shareholders' (deficit) equity                   (12,412)    14,509
Noncontrolling interest in subsidiaries                (780)       (381)
Total (deficit) equity                                 (13,192)    14,128
Total liabilities and (deficit) equity                 $ 237,636   $ 191,485


FUELCELL ENERGY, INC.
Consolidated Statements of Operations
(unaudited)
(Amounts in thousands, except share and per share amounts)

                                                Three Months Ended
                                                October 31,
                                                2013        2012
Revenues:                                                   
Product sales                                    $ 36,190    $ 29,068
Service agreements and license revenues          15,358      4,785
Advanced technologies contract revenues          3,609       1,567
Total revenues                                   55,157      35,420
                                                           
Costs of revenues:                                          
Cost of product sales                            33,039      29,944
Cost of service agreements and license revenues  15,867      2,915
Cost of advanced technologies contract revenues  3,654       1,683
Total cost of revenues                           52,560      34,542
                                                           
Gross profit                                     2,597       878
                                                           
Operating expenses:                                         
Administrative and selling expenses              5,147       5,874
Research and development expenses                4,402       3,422
Total operating expenses                         9,549       9,296
                                                           
Loss from operations                             (6,952)     (8,418)
                                                           
Interest expense                                 (1,755)     (555)
Loss from equity investment                      --          (91)
License fee and royalty income                   --          341
Impairment of equity investment                  --          (3,602)
Other income (expense), net                      (941)       806
                                                           
Loss before provision for income taxes           (9,648)     (11,519)
                                                           
Provision for income taxes                       (349)       --
                                                           
Net loss                                         (9,997)     (11,519)
                                                           
Net loss attributable to noncontrolling interest 297         181
                                                           
Net loss attributable to FuelCell Energy, Inc.   (9,700)     (11,338)
                                                           
Preferred stock dividends                        (800)       (800)
                                                           
Net loss to common shareholders                  $ (10,500)  $ (12,138)
                                                           
Loss per share basic and diluted                            
Basic                                            $ (0.06)    $ (0.07)
Diluted                                          $ (0.06)    $ (0.07)
                                                           
Weighted average shares outstanding                         
Basic                                            187,918,612 185,905,702
Diluted                                          187,918,612 185,905,702


FUELCELL ENERGY, INC.
Consolidated Statements of Operations
(unaudited)
(Amounts in thousands, except share and per share amounts)

                                                Twelve Months Ended
                                                October 31,
                                                2013        2012
Revenues:                                                   
Product sales                                    $ 145,071   $ 94,950
Service agreements and license revenues          28,141      18,183
Advanced technologies contract revenues          14,446      7,470
Total revenues                                   187,658     120,603
                                                           
Costs of revenues:                                          
Cost of product sales                            136,989     93,876
Cost of service agreements and license revenues  29,683      19,045
Cost of research and development contracts       13,864      7,237
Total cost of revenues                           180,536     120,158
                                                           
Gross profit                                     7,122       445
                                                           
Operating expenses:                                         
Administrative and selling expenses              21,218      18,220
Research and development expenses                15,717      14,354
Total operating expenses                         36,935      32,574
                                                           
Loss from operations                             (29,813)    (32,129)
                                                           
Interest expense                                 (3,973)     (2,304)
Income (loss) from equity investment             46          (645)
License fee and royalty income                   --          1,599
Impairment of equity investment                  --          (3,602)
Other income (expense), net                      (1,208)     1,244
                                                           
Loss before provision for income taxes           (34,948)    (35,837)
                                                           
Provision for income taxes                       (371)       (69)
                                                           
Net loss                                         (35,319)    (35,906)
                                                           
Net loss attributable to noncontrolling interest 961         411
                                                           
Net loss attributable to FuelCell Energy, Inc.   (34,358)    (35,495)
                                                           
Preferred stock dividends                        (3,200)     (3,201)
                                                           
Net loss to common shareholders                  $ (37,558)  $ (38,696)
                                                           
Net loss per share to common shareholders                   
Basic                                            $ (0.20)    $ (0.23)
Diluted                                          $ (0.20)    $ (0.23)
                                                           
Weighted average shares outstanding                         
Basic                                            186,525,001 165,471,261
Diluted                                          186,525,001 165,471,261

                                      


FUELCELL ENERGY, INC.
Reconciliation of GAAP to Non-GAAP Consolidated Statements of Operations
(Unaudited)
(Amounts in thousands, except share and per share amounts)

            Three Months Ended October 31,
            2013                                 2012
             GAAP     Non-GAAP        Non-GAAP    GAAP     Non-GAAP           Non-GAAP
            As       Adjustments    As Adjusted As       Adjustments       As Adjusted
             Reported                             Reported
Cost of
product      $ 33,039 $ --           $ 33,039    $ 29,944 $ (462)     (3)    $ 29,482
sales
Gross profit $ 2,597  $ --           $ 2,597     $ 878    $ 462             $ 1,340
Loss from    $        $ --           $ (6,952)   $        $ 462             $ (7,956)
operations   (6,952)                              (8,418)
Loss before
provision    $        $ 1,091     (1) $ (8,557)   $        $ 4,064     (2)(3) $ (7,455)
for income   (9,648)                              (11,519)
taxes
Net loss     $        $ 1,091        $ (8,906)   $        $ 4,064           $ (7,455)
             (9,997)                              (11,519)
Net loss to  $                                    $
common       (10,500) $ 1,091        $ (9,409)   (12,138) $ 4,064           $ (8,074)
shareholders
                                                                      
Net loss per
share to                                                               
common
shareholders
Basic        $ (0.06) $ 0.01         $ (0.05)    $ (0.07) $ 0.02            $ (0.05)    
Diluted      $ (0.06) $ 0.01         $ (0.05)    $ (0.07) $ 0.02            $ (0.05)    
                                                                                        
                                                                                        
            Twelve Months Ended October 31,                                              
            2013                                 2012                                    
             GAAP     Non-GAAP        Non-GAAP    GAAP     Non-GAAP           Non-GAAP
            As       Adjustments    AsAdjusted As       Adjustments       AsAdjusted 
             Reported                             Reported
Cost of      $
product      136,989  $ --           $ 136,989   $ 93,876 $ (462)     (3)    $ 93,414    
sales
Gross profit $ 7,122  $ --           $ 7,122     $ 445    $ 462             $ 907       
Loss from    $        $ --           $ (29,813)  $        $ 462             $ (31,667)  
operations   (29,813)                             (32,129)
Loss before
provision    $        $ 1,383     (1) $ (33,565)  $        $ 4,064     (2)(3) $ (31,773)  
for income   (34,948)                             (35,837)
taxes
Net loss     $        $ 1,383        $ (33,936)  $        $ 4,064           $ (31,842)  
             (35,319)                             (35,906)
Net loss to  $                                    $
common       (37,558) $ 1,383        $ (36,175)  (38,696) $ 4,064           $ (34,632)  
shareholders
                                                                                 
Net loss per
share to                                                                          
common
shareholders
Basic        $ (0.20) $ 0.01         $ (0.19)    $ (0.23) $ 0.02            $ (0.21)  
Diluted      $ (0.20) $ 0.01         $ (0.19)    $ (0.23) $ 0.02            $ (0.21)  

    Notes to Reconciliation of GAAP to Non-GAAP Consolidated Statements of
                                  Operations
       For the Three and Twelve Months Ended October 31, 2013 and 2012

Results of Operations are presented in accordance with accounting principles
generally accepted in the United States ("GAAP"). Management also uses
non-GAAP measures which exclude non-recurring items in order to measure
operating periodic performance.We have added this information because we
believe it helps in understanding the results of our operations on a
comparative basis. This adjusted information supplements and is not intended
to replace performance measures required by U.S. GAAP disclosure.

Notes to the reconciliation of GAAP to non-GAAP Consolidated Statements of
Operations information are as follows:

(1)Adjustment for the three and twelve months ended October 31, 2013 for the
impact from the fair value adjustment required on the embedded derivatives in
the Senior Unsecured Convertible notes in accordance with Accounting Standards
Codification (ASC) 815 – Derivatives and Hedging.

(2)Adjustment for the three and twelve months ended October 31, 2012
represents a non-recurring impairment of the equity investment in Versa Power
Systems.

(3) In the second quarter of 2011, the Company committed to a repair and
upgrade program to fix a performance shortfall for a select group of 1.2 MW
fuel cell modules produced between 2007 and early 2009.The estimate for the
repair and upgrade program was revised in the fourth quarter of 2012 to adjust
for the cost of modules which were expected to be deployed as field
replacements when needed.This resulted in a charge to cost of goods sold in
the fourth quarter of 2012 of $0.5 million.

CONTACT: FuelCell Energy, Inc.
         Kurt Goddard, Vice President Investor Relations
         203-830-7494
         ir@fce.com

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