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Starwood's First Energy Fuel Cell System Completes Installation at Sheraton Edison Hotel; Fuel Cells Provide Reliable Source of Energy Reducing Hotel Energy Costs

Starwood's First Energy Fuel Cell System Completes Installation at Sheraton Edison Hotel; Fuel Cells Provide Reliable Source of Energy Reducing Hotel Energy Costs

Published 08-05-03

Submitted by Starwood Hotels and Resorts

WHITE PLAINS, NY - Starwood Hotels & Resorts Worldwide, Inc. (NYSE: HOT) announced today the completed installation of its first clean, reliable fuel cell energy system at its Sheraton Edison Hotel Raritan Center, in Edison, New Jersey.

Recently named as ENERGY STAR(R) Partner of the Year Award for the last two years, Starwood Hotels & Resorts signed an agreement a year ago with Allentown, PA.-based PPL Corporation (NYSE: PPL) to install, own and operate individual 250-kilowatt fuel cell systems at both the Sheraton Edison and the Sheraton Parsippany (NJ) hotels. The two Sheraton projects are part of a master agreement Starwood and PPL signed that would offer PPL the possibility of installing fuel cells at Starwood locations throughout the United States. The Sheraton Parsippany Hotel's fuel cell project is scheduled for completion this September. Groundbreaking for both fuel cell units began this spring.

The fuel cell system is being dedicated today at a ceremony at the Sheraton Edison Hotel. PPL's distributed generation and energy services subsidiary developed the Sheraton Edison fuel cell project, which provides about 25% of the hotel's electricity and hot water. H.T. Lyons, another PPL subsidiary based in Allentown, PA, was responsible for its installation. PPL will own, operate and maintain the fuel cell system.

PPL has a distribution agreement with Danbury, Ct.-based FuelCell Energy, Inc., (FCE), and PPL has agreed to install, own, operate and maintain fuel cell units at both of the above-referenced properties. Starwood will become the first hotel company to install an FCE power plant.

FuelCell Energy of Danbury, Connecticut (Nasdaq NM: FCEL) manufactured the hotel's fuel cell power plant, which uses natural gas that will be supplied by NUI - Elizabethtown Gas of Bedminster, New Jersey, for fuel. PPL has an equity investment in FuelCell Energy and is a distributor of its fuel cells in the United States.

The New Jersey Clean Energy Program provided $860,000 in funding to PPL as part of its incentive program to encourage the use of clean and efficient energy technology.

"We are thrilled that our first hotel application of fuel cell system technology has been completed and are pleased to be working in conjunction with PPL on this important initiative," said John Lembo, Director of Energy for Starwood. "Having been the recipient of the ENERGY STAR Partner(R) of the Year Award for the last two years, Starwood Hotels & Resorts will continue to adopt and implement environmentally safe and friendly practices that save energy and protect the environment. We feel that energy fuel cell technology will play an important role in reducing harmful emissions and reduce the hotels' overall energy costs."

"PPL is very proud to be working with Starwood Hotels and Resorts to provide clean, reliable and efficient on-site energy systems," said Michael E. Kroboth, President PPL Energy Services Holdings. "Fuel cells are now part of a growing range of environmentally friendly energy solutions PPL is providing to our customers."

"We are delighted to be working with Starwood as it continues its vision and commitment to environmental leadership with the first of two installations of DFC power plants at its hotel properties this year," said FuelCell Energy Chairman and CEO Jerry D. Leitman. "This unit represents PPL's fourth successful installation, demonstrating its role as a premier provider of ultra clean energy using our highly efficient DFC power plants."

By utilizing fuel cell energy, each hotel will reduce its overall energy costs, improve efficiency and help conserve natural resources. Fuel cells are also an environmentally-friendly source of energy technology.

FuelCell Energy Inc. (www.fuelcellenergy.com) is a world-recognized leader for the development and commercialization of high-efficiency fuel cells for electric power generation. The company is developing Direct FuelCell(R) technology for stationary power plants with the U.S. Department of Energy through the National Energy Technology Laboratory, whose advanced fuel cell research program is focused on developing a new generation of high-performance fuel cells that can generate clean electricity at power stations or in distributed locations near the customer, including hospitals, schools, universities and other commercial and industrial applications.

PPL Corporation, headquartered in Allentown, Pa., controls about 11,500 megawatts of generating capacity in the United States, sells energy in key U.S. markets, and delivers electricity to customers in Pennsylvania, the United Kingdom and Latin America.

Starwood Hotels & Resorts Worldwide, Inc. is one of the leading hotel and leisure companies in the world with more than 740 properties in more than 80 countries and 105,000 employees at its owned and managed properties. With internationally renowned brands, Starwood is a fully integrated owner, operator and franchisor of hotels and resorts including: St. Regis, The Luxury Collection, Sheraton, Westin, Four Points by Sheraton, W brands, as well as Starwood Vacation Ownership, Inc., one of the premier developers and operators of high quality vacation interval ownership resorts.

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