BOTHELL, Wash. -- Neah Power Systems, Inc., an emerging leader in micro fuel cell technology, today announced that it has raised approximately $12 million in equity funding from Castile Ventures, WestAM, and other investors, including current investors Frazier Technology Ventures, Alta Partners, and Intel Capital. The new funding will be used to support Neah Power's development and commercialization programs.

The company is developing a silicon-based direct methanol fuel cell (DMFC) aimed at providing longer-lasting power solutions for mobile electronic devices, such as notebook PCs, camcorders, and advanced communications products. By leveraging the scalability of its silicon-based design architecture, Neah Power fuel cells have the potential to achieve higher power and smaller size than competing micro fuel cell technologies. Most recently the company was selected as "Start Up Company of the Year" by the Alliance of Angels (AoA), a non-profit organization that connects promising early-stage technology companies with seed capital in the Pacific Northwest.

"We took a long, hard look at the entire DMFC category and concluded that traditional technology approaches seemed unlikely to succeed," said Roger Walton, partner at Castile Ventures. "Neah Power's patented silicon-based design, in comparison, has the potential to scale and set the standard for the category. We look forward to sharing our expertise and helping Neah Power become a break-out, commercially successful company."

"We have been following developments in the fuel cell industry for several years and believe that Neah Power's strong management team, coupled with their technology solution for the micro portable device segment, positions them to be a market leader," said Mark Worley, a partner at the institutional private equity firm, WestAM. "We are pleased to join the team of co-investors to help the company reach its potential."

"We're thrilled to have Castile Ventures and WestAM give us this strong vote of confidence," said David Dorheim, president and CEO of Neah Power Systems. "These new investors provide a strong affirmation of Neah Power's accomplishments, direction, and market potential."

About Castile Ventures

Castile Ventures is an early-stage venture capital firm investing in innovative enterprises developing future generations of communications, software and IT infrastructure. Based in Waltham, Mass., Castile is distinguished by the deep sector expertise and business-building experience of its partners. The firm's signature is a high degree of value-added support delivered through lasting partnerships with entrepreneurs. For more information, visit www.castileventures.com.

About WestAM

WestAM is the global investment management arm of WestLB AG, Germany's fourth largest bank by assets. WestAM has investment management operations in the US, Europe, Japan and Australia. As of March 31, 2004, WestAM managed a total of US$51 billion for more than 500 institutional clients around the world. The Private Equity Group of WestAM is based in Chicago with offices in New York and Los Angeles. The Group manages nearly $3 billion in institutional commitments to private equity through discretionally managed portfolios of venture and buyouts partnership, and direct investments in underlying portfolio companies. Additional information can be found at www.westam.com.

About Neah Power Systems

Neah Power Systems is a micro fuel cell development company using a patented, silicon-based design to provide long-lasting, efficient, and safe power solutions for portable electronic devices, including notebook PCs and other power-hungry computer, entertainment, and communications products. As an emerging leader in fuel cell technology and design, Neah Power Systems believes that its products will allow users to extend the operating time of their devices multiple times beyond that of conventional batteries. Key investors include Alta Partners, Frazier Technology Ventures, Castile Ventures, WestAM and Intel Capital. Neah Power Systems is headquartered just outside of Seattle in Bothell, Wash. Further company information can be found at www.neahpower.com or by calling 425-424-3324.