"In addition to these financial accomplishments, we have recently announced that the U.S. Army is funding the development of a portable 30 watt soldier power product (the "P2") that our licensee, Protonex Technology Corporation is on track to publicly demonstrate in the fourth quarter," commented H. David Ramm, Millennium Cell Chief Executive Officer. "We expect the Air Force to begin field testing early next year and Protonex to begin low volume shipments to support this effort in early 2006.

Mr. Ramm continued, "While the military has clearly emerged as our lead market in the near term, we view the P2 as an attractive replacement for batteries in selected applications in the medical and industrial markets. With regard to consumer electronics markets, we continue to interact with the Intel-sponsored Extended Battery Life Working Group and through focus groups are evaluating the value proposition provided by our technology in notebook PCs. Initial feedback is encouraging. Finally, as part of our effort to increase the number of licensees, we are actively pursuing additional collaborative opportunities with other potential OEM and fuel cell partners and look forward to updating you on our progress."

The Company will host a conference call on October 27th, 2005 at 10:00 a.m., EDT to discuss its third quarter results. Interested parties may listen to the live teleconference by dialing 1-866-356-4281 and entering passcode 30454295. A telephonic replay of the conference call will also be available through November 4, 2005, by calling 1-888-286-8010 and entering passcode 79268796.

To listen to a live broadcast of the call over the Internet or to review the archived call, please visit: www.millenniumcell.com under the "Investor Relations" section.

About Millennium Cell

Millennium Cell develops hydrogen battery technology through a patented chemical process that safely stores and delivers hydrogen energy to power portable devices. The borohydride-based technology can be scaled to fit any application requiring high energy density for a long run time in a compact space. The Company is working with market partners to meet demand for its patented process in four areas: military, medical, industrial and consumer electronics. For more information, visit www.millenniumcell.com. 
 

Millennium Cell Inc.
(a development stage enterprise)
(dollars in millions, except per share amounts)

                               Three Months Ended   Nine Months Ended
Statement of Operations        Sept.,05  Sept.,04  Sept.,05  Sept.,04
                               --------- --------- --------- ---------
Revenue                        $    0.1  $    0.1  $    0.3  $    0.1
Cost of revenue                     0.1       0.1       0.2       0.1
                               ---------------------------------------
Gross margin                          -         -       0.1         -
                               ---------------------------------------

Product development and
 marketing                          0.9       0.9       2.7       2.7
General and administrative          1.4       0.8       4.2       3.0
Non-cash charges                    0.1       0.1       3.1       0.7
Depreciation and amortization       0.1       0.1       0.2       0.4
Research and development            0.1       0.1       0.5       0.2
                               ---------------------------------------
Total operating expenses            2.6       2.0      10.7       7.0
                               ---------------------------------------

Loss from operations               (2.6)     (2.0)    (10.6)     (7.0)
Interest expense                    0.8       0.3       1.5       1.6
                               ---------------------------------------
Net loss                       $   (3.4) $   (2.3) $  (12.1) $   (8.6)
                               ---------------------------------------

Net loss per share             $  (0.08) $  (0.06) $  (0.29) $  (0.24)
                                 44.373                  40
Weighted-average number of
 shares outstanding                44.4      37.7      42.4      36.7





Millennium Cell Inc.
(a development stage enterprise)
(dollars in millions)

Condensed Balance Sheet                          Sept., 05   Dec., 04
                                                 ---------- ----------
Unrestricted cash (1)                            $    11.0  $     8.2
Restricted cash (2)                                    4.1        3.0
Fixed assets, net                                      0.5        0.7
Patents and licenses, net                              0.6        0.5
Other assets                                           0.8        0.9
                                                  ---------  ---------
Total assets                                     $    17.0  $    13.3
                                                  ---------  ---------

Accounts payable and accrued expenses            $     1.2  $     1.2
Secured debentures, net of discount                    2.4        2.4
Unsecured debentures, net of discount                    -        5.1
Preferred Stock - Series C, net of discount            5.3          -
Other liabilities                                      0.5        0.4
Stockholders' equity                                   7.6        4.2
                                                  ---------  ---------
Total liabilities and stockholders' equity       $    17.0  $    13.3
                                                  ---------  ---------

(1) Increase in cash from $8.2 (Dec.,04) to $11.0 (Sept.,05) was $2.8
    million: $9.6 cash received from private placement + ($7.5)
    consumed in operations + $0.6 working capital + ($0.1) fixed asset
    additions + $1.2 cash provided by warrant and option exercises +
    ($1.0) restricted stock

(2) Cash restricted is collateral for secured debentures ($2.5),
    Series C Preferred Stock ($1.0) and facility lease ($0.6).