HONG KONG, July 3 /PRNewswire/ --

- Strategic alliance will develop and mass-produce eco-friendly, fuel
cell powered toys and energy storage devices

Wah Shing Toys Co., Ltd. (Wah Shing), one of the world's largest toy
manufacturers and Horizon Fuel Cell Technologies (Horizon), the leading
producer of consumer-oriented fuel cell technologies, today announced a
strategic alliance and exclusive manufacturing agreement to pioneer the
design and mass-production of environmentally friendly, fuel cell-powered
toys and reusable energy storage devices.

Under the agreement, Wah Shing will scale up manufacturing of Horizon's
existing line of tech-toy products, with the aim of developing new fuel
cell-powered products for major international toy companies. The
agreement will leverage Wah Shing's global operations and track record of
industry leadership and innovation to bring fuel cell-powered consumer
products to millions of individuals around the world.

This new initiative follows the successful launch of Horizon's "H-racer"
fuel cell-powered toy car, a Time Magazine "Best Invention" in 2006, and one
of the "coolest new products on the planet" according to a recent issue of
Business 2.0 magazine. The H-Racer is an innovative toy-scale "zero emission
vehicle" that uses a fuel cell to combine hydrogen with oxygen from water to
generate a DC current that powers the car's electric motor. The only
by-products of the fuel cell are electricity, and pure water -- with no
combustion and no disposal.

Richard Ellert, Managing Director of Wah Shing, commented, "As a leading
toy manufacturer, Wah Shing is very excited to be at the forefront of "green
toy" technology. The H-racer not only educates children and adults about
alternative energy, it is also an important 'proof of concept' for
demonstrating the practical application of this visionary technology. It's
now time to take this concept to the next level. Building on our
complementary expertise, this partnership will increase the performance of
small fuel cell-powered consumer items and deliver them at a highly 
competitive cost, taking fuel cells out of the laboratory and bringing them 
into the home."

As part of this effort, Wah Shing is spearheading the promotion of
Horizon's more environmentally responsible alternative to disposable
batteries. Today's more popular toys can use in excess of 500 million
disposable alkaline batteries per year. Horizon is looking to introduce a new
generation of re-usable energy storage devices for use in toys and other 
consumer products.

Building on its fuel cell technology, Horizon is developing a new
generation of non-toxic energy storage devices that would feed small fuel
cell power systems designed into next-generation toys and that could be
re-used hundreds of times. Horizon has already introduced a hydrogen fuel
cell conversion kit concept for radio control car hobbyists. Instead of using
a 7.2V Nickel Cadmium (NiCad) battery, the kit uses three re-useable
hydride storage prototypes that feed a 7.2V fuel cell which is able to
run the car four to five times longer than a NiCad battery.

Taras Wankewycz, Vice President of Horizon, added, "How better to promote
a future based on clean, efficient energy solutions than by reaching out to
the young generation today. Even as Horizon also develops industrial-size
power products, the toys and hobby-products we are developing with Wah Shing
are a starting point for mainstream commercial introduction of numerous fuel
cell powered applications."

About Wah Shing:

Wah Shing Toys Co., Ltd. (Wah Shing), established in 1976, is one of the
world's largest toy manufacturers. Headquartered in Hong Kong and with
operations in Hong Kong as well as in China's Guangdong and Guangxi
Provinces, Wah Shing is a member of South China Industries Limited, which is
listed on the Hong Kong Stock Exchange.

Richard Ellert, Managing Director of Wah Shing, is the chairman of the
Asia Technical Advisory Board of the International Council of Toy Industries
(ICTI) and a member of the Toy Manufacturers' Association of Hong Kong.

About Horizon:

Thinking big, yet starting small, Horizon pioneered the sales of
next-generation fuel cell power products in small consumer products,
while developing larger-scale clean power solutions for larger-size
applications such as portable power, transportation and aerospace. With
comprehensive technological developments focused on enabling fuel cell
commercialization, Horizon is the first company to bring advanced fuel cell
technology out of the laboratories and into the marketplace today. Formed in
Singapore in 2003, the company is led by an international team based in
Shanghai.