Publication date:29-September-2003 

On an 8-K filed with the Securities and Exchange Commission on January 14, 2003, UltraGuard acquired by share exchange all the issued and outstanding shares of Innovative Fuel Cell Technology Inc., the holder of an option to acquire the world rights to a Magnesium-Air Fuel Cell developed by MagPower Systems Inc.

On January 14, 2003, UltraGuard and MagPower performed testing of the Magnesium-Air Fuel Cell using a prototype Fuel Cell to power UltraGuard's Point of Use water purification unit. On January 22, 2003, in a news release issued by MagPower, its President, Bruce Downing, stated, and we quote, "This was the first direct use of our fuel cell on a specific application and we are extremely pleased with the results."

On March 14, 2003, UltraGuard completed an agreement with MagPower to purchase the worldwide rights to manufacture and market the Magnesium-Air Fuel Cell.

UltraGuard's interest in this technology stems from its desire to reach new and virtually untouched marketplaces. With a desperate need of clean drinking water in many parts of the world where electrical power is not available, the marriage of these two products will permit UltraGuard to enter a market where few if any competitors can enter. With the affordable fuel cell used to pump the water and to power UltraGuard's UV unit, thousands of liters of clean and safe drinking water are available to even the most remote village or residence. Additionally, the fuel cell is available to power basic lighting needs, radios and televisions. To replenish the battery's power, a simple and inexpensive exchange of magnesium plates, hydrogen inhibitor and the addition of salt water have the fuel cell up to full power instantly.

With product available in early 2004, UltraGuard will actively pursue international interest in representation and sublicensing of these products

Forward-Looking Statements: Certain of the foregoing information are forward-looking statements regarding future events or the future financial performance of the company and are subject to a number of risks and other factors, which could cause the actual results to differ materially from those contained in the forward-looking statements. Among such factors are: general business and economic conditions, customer acceptance of and demand for the Company's products, the Company's overall ability to design, test and introduce new and improved products on a timely basis, regulatory constraints, and the risk factors listed from time to time in documents filed by the company with the SEC.

SOURCE: UltraGuard Water Systems Corp.