Neah Power Systems, Inc., a Nevada corporation (Pink Sheets:NPWS), today announced it has renewed and extended the Collaboration Agreement with Novellus Systems, Inc. (NASDAQ:NVLS).

Neah is in the business of developing silicon-based fuel cell technology. Novellus is a provider of advanced deposition and surface preparation systems for the semiconductor industry. Neah and Novellus will collaborate to develop technology related to the application of catalyst and conductive films to porous silicon structures to be used as fuel cell electrodes.

Neah's patented porous silicon direct methanol fuel cell, which Neah is still in the process of developing for commercial production, utilizes porous silicon, a substance that its engineers believe will sidestep many challenges associated with Methanol Fuel Cells that are based upon Proton Exchange Membrane (PEM) technology. Neah uses its 3 dimensional patented porous silicon to obtain greater power densities (40x's), greater reliability, scalability, and manufacturability.

Pursuant to the agreement with Novellus, Dr. Wilbert Van der Hoek, CEO and President of Novellus Development Company and former Chief Technology Officer for Novellus, will serve as Chairman of the Neah Power Systems Technology Advisory Board. In addition, Dr. John Drewery, Director of Technology at Novellus will continue to serve as Executive Vice President for Neah and an additional Novellus project scientist will be assigned on a full time basis to Neah.

John Drewery, Executive Vice President of Engineering at Neah Power Systems, works for Neah under the Collaboration Agreement with Novellus Systems Inc. (Nasdaq:NVLS), a leading manufacturer of semiconductor capital equipment and an investor in Neah. He is a Director of Technology at Novellus. Dr. Drewery specializes in leading rapid development of groundbreaking technologies and has 25 years of experience in the fields of solid-state physics, metals deposition technology, and semiconductor processing. Before coming on board at Neah Power, Dr. Drewery was in charge of advanced metals processing development at Novellus. Before joining Novellus, he invented and developed ground-breaking metal deposition technologies at Tokyo Electron, Ltd. and at Varian Associates. From 1989 to 1995, Dr. Drewery was a Staff Scientist at Lawrence Berkeley National Laboratory. Dr. Drewery received his Ph.D. in solid state physics from the University of Cambridge (Cavendish Physics Laboratory) in 1986.

"We are excited about the progress Neah continues to make. Given the incredible market size in Military/Consumer portable energy devices and the policy and environmental benefits that will flow from converting readily transportable Methanol into electrical energy, we are thrilled to stand side-to-side with Neah as we introduce this new technology. We believe Neah's unique porous silicon fuel cell has the potential to be a true 'Disruptive Technology'. We look forward to sharing in their success, and to developing the tools necessary to support the manufacturing of the porous silicon for the Neah fuel cell," said Dr. John Drewery.

"Novellus brings a wealth of knowledge and expertise that has and will enable Neah to accelerate the path of its progress. I am pleased with the excellent execution by the Novellus Systems engineering team during the past two years, and I am delighted that we will be able to build upon our past successes to meet our goal of completing the development of our porous silicon fuel cell prototype this year and the production to follow shortly thereafter," said Paul Abramowitz, CEO of Neah Power Systems.

Please review the Company's 10SB filed on May 1, 2006 for further information concerning the renewal of the Novellus Collaboration Agreement and its specific financial terms, and conditions.