This integrated power system will be the first deliverable under a previously announced U.S. Air Force Research Laboratory, Dual Use Science and Technology ("DUST") contract awarded to Protonex. Under this program, Protonex and Millennium Cell are integrating Millennium Cell's hydrogen energy system with Protonex's PEM fuel cell system to provide an integrated fuel cell power source to provide critical soldier power for extended field missions. The prototype system is scheduled to be delivered to the Air Force in February of 2005.

This first deliverable under the Air Force program represents a substantial improvement in energy density and cost over the batteries used today by the U.S. Military. Today, a soldier on a 72-hour mission needs to carry 13 batteries that weigh about 29 pounds. The current Protonex and Millennium Cell solution is comprised of a fuel cell system accompanied by 3-5 snap-in fuel cartridges that weigh less than 15 pounds. Later in 2005, the companies expect to deliver a next generation system to the Air Force that will weigh less than 10 pounds. This mission-ready version of this system will be less than 1/2 the cost of the incumbent battery technology making it a significant value add for a number of military portable power applications.

About Millennium Cell

Millennium Cell Inc. is engaged in the development of next generation hydrogen energy systems for use primarily in portable electronic devices for the consumer, medical, military and industrial markets. These energy systems offer runtime, weight, safety and cost advantages in an attractive form factor versus existing solutions. Millennium Cell is developing this technology in partnership with corporate and government entities. For more information, visit http://millenniumcell.com.

About Protonex Technology Corporation

Established in 2000, Protonex manufactures long duration, portable and remote power sources. Protonex provides complete power solutions to OEM customers for portable and remote off-grid applications under served by existing battery, generator, solar and other power technologies. The company's innovative fuel cell products complement existing power technologies and are utilized in hybrid designs for customer applications in the 10 to 500 Watt power range. For more information, visit http://www.protonex.com.