This importance of this patent grant in China is highlighted by CMR's goal of
supplying the portable electronics market with long running, low cost fuel cell
stacks. China is a leading manufacturer, consumer and developer of portable
electronics products as well as having one of the most active fuel cell
development programs in the world. All of these factors are relevant to this
patent grant as each strengthens CMR's commercial proposition;

  * CMR's products can be manufactured and sold in China with less risk of
    intellectual property infringement and therefore maintain higher value
   
  * Infringing products are less likely to be made in China, again protecting
    value
   
  * Strengthened negotiating position with indigenous and 3rd party OEMs who
    manufacture and develop in China
   
  * CMR's intellectual property is secured early in a region where intense
    research and development is being carried out in the fuel cell field
   
Far eastern markets are expected to lead mass adoption of fuel cell technology,
where consumers demand more features and functions from portable devices and
conventional batteries do not have enough power capacity when these features
are used. CMR is developing commercial relationships with a number of major
electronics OEM's in the region and expects the grant of this core patent to
strengthen its position in possible future collaborative projects.

It is the expectation of the management that in the longer term the Chinese
market will represent a substantial commercial opportunity for the company's
technology and that by building an initial commercial presence in the region,
coupled by strong patent protection, CMR will be strongly positioned to enter
into various application markets in the region as they emerge.

John Halfpenny, CEO, comments:

'Having a core patent granted in China is a very powerful strengthening of our
intellectual property position, and I expect that this will strongly support
our commercialisation programme in the region. China is a complex and
challenging jurisdiction in which to operate and in which to gain intellectual
property protection. Our success here gives me great confidence of further
patent grants in other regions'