Arnold's Hydrogen Hummer

[PARAGON]

<Table>



<TABLE width=175 align=left>
<TBODY>
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<SPAN class=artsectiontitle>Vehicle of
the Week</SPAN>
<SPAN class=mainarttitle><SPAN class=mainarttitle>Arnold's
Hydrogen Hummer</SPAN>
</SPAN><SPAN class=mainartauthor><SPAN
class=mainartauthor>Dan Lienert </SPAN><SPAN
class=mainartsrc></SPAN>

</SPAN>



<SPAN class=mainarttxt>In what the company has called a "bold experiment,"
Hummer has prepared a hydrogen-powered version of its H2 SUT
(sport utility truck), the H2H. The vehicle is not intended for
production, and a Hummer spokesperson said yesterday in a phone interview that
the company will not divulge the prototype's development cost.
</SPAN>

<SPAN class=mainarttxt></SPAN>
<TABLE cellSpacing=0 cellPadding=0 width=225 align=right border=0>
<TBODY>
<TR>
<TD width=10 rowSpan=2></TD>
<TD></A></TD></TR>
<TR>
</TR></TBODY></TABLE><SPAN class=mainarttxt>Hummer's parent,
General Motors (nyse: GM - news - <A
href="http://www.forbes.com/peopletracker/results.jhtml?startRow=0&name=&ticker=GM">people
</A>), owns the H2H and shares it with the office of the governor of California,
Arnold Schwarzenegger. In a recent statement, Schwarzenegger said that
the purpose of the prototype is to "demonstrate the economic and technical
viability of hydrogen." He had said during his gubernatorial campaign that he
was interested in alternative fuels and one day would go so far as to own a
hydrogen-powered Hummer. </SPAN>

<SPAN class=mainarttxt>California is
making a pioneering effort with its Hydrogen Highway Network, an initiative that
combines the efforts of industry and government to develop the state's
infrastructure, research and market for hydrogen cars. Hummer, a maker of the
some of the most fuel-inefficient and wasteful automobiles in the world,
presumably wanted a part in this venture because Schwarzenegger already likes
the brand's cars, and because the company is trying to change its image.
</SPAN>

<SPAN class=mainarttxt>The H2H puts lipstick on the pig by
turning a vehicle whose urban fuel economy is about 10 miles per gallon (filling
the tank routinely costs over $50) into a futuristic, alternatively-fueled car
whose main tailpipe emission is water vapor. Hummer has engineered the H2H to
use a supercharged version of the regular truck's 6.0-liter V-8 engine.
</SPAN>

<SPAN class=mainarttxt>According to Hummer, the H2H was created
by a team of GM engineers from the U.S., Canada and Germany, in collaboration
with Quantum Technologies (nasdaq: QTWW -
news - <A
href="http://www.forbes.com/peopletracker/results.jhtml?startRow=0&name=&ticker=QTWW">people
</A>), a California-based supplier of hydrogen fuel systems. The car is a
one-of-a-kind deal, although the partners might build one or two more H2Hs.
</SPAN>

<SPAN class=mainarttxt>The H2H uses a conventional internal
combustion engine powered by compressed hydrogen, even though GM's plans for its
future model range involve hydrogen cars powered by energy sources called
"fuel-cell stacks." Supposing for the sake of argument that Schwarzenegger
wanted to drive the H2H around California ("I don't think that's a common
occurrence," said the Hummer spokesperson), he could refuel the car at several
stations. </SPAN>

<SPAN class=mainarttxt>The majority of California's 12
to 15 hydrogen refueling stations are in the southern part of the state,
although Schwarzenegger could--for example--refuel the H2H at the University
of California, Davis' station if he didn't stray too far from Sacramento.
Hydrogen currently costs $4 to $10 per kilogram, the unit in which it is
measured, and the H2H's fuel tank holds five to six kg of hydrogen. GM believes
that if hydrogen is to be commercially viable it must cost $2 to $2.25 per
kg--that is, it must be competitive with gasoline prices. </SPAN>

<SPAN
class=mainarttxt>GM does not allow Schwarzenegger to use the "Self-Serve" lane
at the hydrogen station. The company fills the tank itself, keeps the vehicle in
Lake Forest, Calif. (near its engineering facilities and Quantum's offices) and
requires that a GM engineer ride in the car at all times. </SPAN>


<H4>Forbes Fact </H4><SPAN class=mainarttxt>Is Hummer's tentative embrace of
green technology sparked by conscience or sales? Noting that Hummer's North
American sales in the first 11 months of 2004 declined 19% compared to the same
period in 2003, the refashioning of Hummer starts to make sense--even if selling
Hummers on their fuel economy still sounds like a desperate move. This spring,
Hummer will introduce the H3 sport utility vehicle, the company's
smallest and most fuel-efficient car yet.</SPAN></Table>

[PARAGON]

<Table>



<TABLE width=175 align=left>
<TBODY>
<TR>
<TD width=168></TD>
<TD>[img]images/spacer.gif[/img]</TD></TR></TBODY></TABLE>
<SPAN class=artsectiontitle>Vehicle of
the Week</SPAN>
<SPAN class=mainarttitle><SPAN class=mainarttitle>Arnold's
Hydrogen Hummer</SPAN>
</SPAN><SPAN class=mainartauthor><SPAN
class=mainartauthor>Dan Lienert </SPAN><SPAN
class=mainartsrc></SPAN>

</SPAN>



<SPAN class=mainarttxt>In what the company has called a "bold experiment,"
Hummer has prepared a hydrogen-powered version of its H2 SUT
(sport utility truck), the H2H. The vehicle is not intended for
production, and a Hummer spokesperson said yesterday in a phone interview that
the company will not divulge the prototype's development cost.
</SPAN>

<SPAN class=mainarttxt></SPAN>
<TABLE cellSpacing=0 cellPadding=0 width=225 align=right border=0>
<TBODY>
<TR>
<TD width=10 rowSpan=2></TD>
<TD></A></TD></TR>
<TR>
</TR></TBODY></TABLE><SPAN class=mainarttxt>Hummer's parent,
General Motors (nyse: GM - news - <A
href="http://www.forbes.com/peopletracker/results.jhtml?startRow=0&name=&ticker=GM">people
</A>), owns the H2H and shares it with the office of the governor of California,
Arnold Schwarzenegger. In a recent statement, Schwarzenegger said that
the purpose of the prototype is to "demonstrate the economic and technical
viability of hydrogen." He had said during his gubernatorial campaign that he
was interested in alternative fuels and one day would go so far as to own a
hydrogen-powered Hummer. </SPAN>

<SPAN class=mainarttxt>California is
making a pioneering effort with its Hydrogen Highway Network, an initiative that
combines the efforts of industry and government to develop the state's
infrastructure, research and market for hydrogen cars. Hummer, a maker of the
some of the most fuel-inefficient and wasteful automobiles in the world,
presumably wanted a part in this venture because Schwarzenegger already likes
the brand's cars, and because the company is trying to change its image.
</SPAN>

<SPAN class=mainarttxt>The H2H puts lipstick on the pig by
turning a vehicle whose urban fuel economy is about 10 miles per gallon (filling
the tank routinely costs over $50) into a futuristic, alternatively-fueled car
whose main tailpipe emission is water vapor. Hummer has engineered the H2H to
use a supercharged version of the regular truck's 6.0-liter V-8 engine.
</SPAN>

<SPAN class=mainarttxt>According to Hummer, the H2H was created
by a team of GM engineers from the U.S., Canada and Germany, in collaboration
with Quantum Technologies (nasdaq: QTWW -
news - <A
href="http://www.forbes.com/peopletracker/results.jhtml?startRow=0&name=&ticker=QTWW">people
</A>), a California-based supplier of hydrogen fuel systems. The car is a
one-of-a-kind deal, although the partners might build one or two more H2Hs.
</SPAN>

<SPAN class=mainarttxt>The H2H uses a conventional internal
combustion engine powered by compressed hydrogen, even though GM's plans for its
future model range involve hydrogen cars powered by energy sources called
"fuel-cell stacks." Supposing for the sake of argument that Schwarzenegger
wanted to drive the H2H around California ("I don't think that's a common
occurrence," said the Hummer spokesperson), he could refuel the car at several
stations. </SPAN>

<SPAN class=mainarttxt>The majority of California's 12
to 15 hydrogen refueling stations are in the southern part of the state,
although Schwarzenegger could--for example--refuel the H2H at the University
of California, Davis' station if he didn't stray too far from Sacramento.
Hydrogen currently costs $4 to $10 per kilogram, the unit in which it is
measured, and the H2H's fuel tank holds five to six kg of hydrogen. GM believes
that if hydrogen is to be commercially viable it must cost $2 to $2.25 per
kg--that is, it must be competitive with gasoline prices. </SPAN>

<SPAN
class=mainarttxt>GM does not allow Schwarzenegger to use the "Self-Serve" lane
at the hydrogen station. The company fills the tank itself, keeps the vehicle in
Lake Forest, Calif. (near its engineering facilities and Quantum's offices) and
requires that a GM engineer ride in the car at all times. </SPAN>


<H4>Forbes Fact </H4><SPAN class=mainarttxt>Is Hummer's tentative embrace of
green technology sparked by conscience or sales? Noting that Hummer's North
American sales in the first 11 months of 2004 declined 19% compared to the same
period in 2003, the refashioning of Hummer starts to make sense--even if selling
Hummers on their fuel economy still sounds like a desperate move. This spring,
Hummer will introduce the H3 sport utility vehicle, the company's
smallest and most fuel-efficient car yet.</SPAN></Table>

[PARAGON]

<Table>



<TABLE width=175 align=left>
<TBODY>
<TR>
<TD width=168></TD>
<TD>[img]images/spacer.gif[/img]</TD></TR></TBODY></TABLE>
<SPAN class=artsectiontitle>Vehicle of
the Week</SPAN>
<SPAN class=mainarttitle><SPAN class=mainarttitle>Arnold's
Hydrogen Hummer</SPAN>
</SPAN><SPAN class=mainartauthor><SPAN
class=mainartauthor>Dan Lienert </SPAN><SPAN
class=mainartsrc></SPAN>

</SPAN>



<SPAN class=mainarttxt>In what the company has called a "bold experiment,"
Hummer has prepared a hydrogen-powered version of its H2 SUT
(sport utility truck), the H2H. The vehicle is not intended for
production, and a Hummer spokesperson said yesterday in a phone interview that
the company will not divulge the prototype's development cost.
</SPAN>

<SPAN class=mainarttxt></SPAN>
<TABLE cellSpacing=0 cellPadding=0 width=225 align=right border=0>
<TBODY>
<TR>
<TD width=10 rowSpan=2></TD>
<TD></A></TD></TR>
<TR>
</TR></TBODY></TABLE><SPAN class=mainarttxt>Hummer's parent,
General Motors (nyse: GM - news - <A
href="http://www.forbes.com/peopletracker/results.jhtml?startRow=0&amp;name=&amp;ticker=GM"> people
</A>), owns the H2H and shares it with the office of the governor of California,
Arnold Schwarzenegger. In a recent statement, Schwarzenegger said that
the purpose of the prototype is to "demonstrate the economic and technical
viability of hydrogen." He had said during his gubernatorial campaign that he
was interested in alternative fuels and one day would go so far as to own a
hydrogen-powered Hummer. </SPAN>

<SPAN class=mainarttxt>California is
making a pioneering effort with its Hydrogen Highway Network, an initiative that
combines the efforts of industry and government to develop the state's
infrastructure, research and market for hydrogen cars. Hummer, a maker of the
some of the most fuel-inefficient and wasteful automobiles in the world,
presumably wanted a part in this venture because Schwarzenegger already likes
the brand's cars, and because the company is trying to change its image.
</SPAN>

<SPAN class=mainarttxt>The H2H puts lipstick on the pig by
turning a vehicle whose urban fuel economy is about 10 miles per gallon (filling
the tank routinely costs over $50) into a futuristic, alternatively-fueled car
whose main tailpipe emission is water vapor. Hummer has engineered the H2H to
use a supercharged version of the regular truck's 6.0-liter V-8 engine.
</SPAN>

<SPAN class=mainarttxt>According to Hummer, the H2H was created
by a team of GM engineers from the U.S., Canada and Germany, in collaboration
with Quantum Technologies (nasdaq: QTWW -
news - <A
href="http://www.forbes.com/peopletracker/results.jhtml?startRow=0&amp;name=&amp;ticker=QTWW ">people
</A>), a California-based supplier of hydrogen fuel systems. The car is a
one-of-a-kind deal, although the partners might build one or two more H2Hs.
</SPAN>

<SPAN class=mainarttxt>The H2H uses a conventional internal
combustion engine powered by compressed hydrogen, even though GM's plans for its
future model range involve hydrogen cars powered by energy sources called
"fuel-cell stacks." Supposing for the sake of argument that Schwarzenegger
wanted to drive the H2H around California ("I don't think that's a common
occurrence," said the Hummer spokesperson), he could refuel the car at several
stations. </SPAN>

<SPAN class=mainarttxt>The majority of California's 12
to 15 hydrogen refueling stations are in the southern part of the state,
although Schwarzenegger could--for example--refuel the H2H at the University
of California, Davis' station if he didn't stray too far from Sacramento.
Hydrogen currently costs $4 to $10 per kilogram, the unit in which it is
measured, and the H2H's fuel tank holds five to six kg of hydrogen. GM believes
that if hydrogen is to be commercially viable it must cost $2 to $2.25 per
kg--that is, it must be competitive with gasoline prices. </SPAN>

<SPAN
class=mainarttxt>GM does not allow Schwarzenegger to use the "Self-Serve" lane
at the hydrogen station. The company fills the tank itself, keeps the vehicle in
Lake Forest, Calif. (near its engineering facilities and Quantum's offices) and
requires that a GM engineer ride in the car at all times. </SPAN>


<H4>Forbes Fact </H4><SPAN class=mainarttxt>Is Hummer's tentative embrace of
green technology sparked by conscience or sales? Noting that Hummer's North
American sales in the first 11 months of 2004 declined 19% compared to the same
period in 2003, the refashioning of Hummer starts to make sense--even if selling
Hummers on their fuel economy still sounds like a desperate move. This spring,
Hummer will introduce the H3 sport utility vehicle, the company's
smallest and most fuel-efficient car yet.</SPAN></Table>