The shares that Medis has loaned to the affiliate of Citigroup Global Markets Inc. are expected to be reflected as issued and outstanding in stockholders' equity and such affiliate's obligation to return these shares is expected to be reflected as a reduction of outstanding shares. Medis does not expect that such shares will be considered outstanding for the purpose of computing earnings per share.

This announcement is neither an offer to sell nor an offer to buy any of these securities and shall not constitute an offer, solicitation or sale in any jurisdiction in which such offer, solicitation or sale is unlawful.

You can request a copy of the prospectus and related prospectus supplement for the offering to which this communication relates by contacting Citigroup Corporate and Investment Banking, Brooklyn Army Terminal, 140 58th Street, 8th Floor, Brooklyn, NY 11220 (tel: 718-765-6732; fax: 718-765-6734).

Medis Technologies' primary focus is on direct liquid fuel cell technology. Its business strategy is to sell its products to end users through retail outlets, service providers and to the military and other markets. Medis has also developed the CellScan with many potential applications relating to disease diagnostics and chemo sensitivity. Additionally, Medis' product pipeline includes other technologies, in varying stages of development.