Rather than joining other companies that are attempting to create a better "Proton Exchange Membrane" (PEM)-based direct methanol fuel cell, Neah believes an entirely new design approach is necessary to achieve the energy, power densities and reliability required by portable electronic devices.

Instead of using a PEM and air cathode, Neah has chosen to use liquid streams of fuel, oxidant, and electrolyte. The porous silicon based electrode architecture facilitates this. The durability of air cathodes in competing fuel cells can be compromised by airborne pollutants and/or internal cell complications such as methanol crossover. The Neah cathode uses a liquid oxidant which is not compromised by these phenomena. Furthermore, the absence of a PEM in Neah's design eliminates multiple well-documented failure mechanisms associated with degradation of this membrane, such as conductivity loss, methanol crossover, and humidity control in competing systems.

Tuning the fluidic characteristics of the porous silicon enables optimal electrode and stack performance. When coupled with the high performance porous silicon electrode, these differences from conventional PEM-based technology lead to a more robust design with over twice the power output per unit area of competing fuel cell designs.

About Neah Power Systems

Neah Power Systems, Inc., is a micro fuel cell development company using a patented, silicon-based design to provide long-lasting, efficient and safe power solutions for portable electronic devices, including notebook PCs and other power-hungry computer, entertainment, and communications products. As an emerging leader in fuel cell technology and design, Neah Power Systems believes that its products will allow users to extend the operating time of their devices multiple times beyond that of conventional batteries. Key investors include Alta Partners, Frazier Technology Ventures, Castile Ventures, WestAM and Intel Capital. Neah Power Systems is headquartered just outside of Seattle in Bothell, Washington. Further company information can be found at our Website www.neahpower.com and in the reports that we file with the Securities and Exchange Commission, which are accessible on its Website at http://www.sec.gov.