"This is a major milestone in bringing our 24/7 Power Pack product to the market," said Robert K. Lifton, Chairman & CEO of Medis Technologies. "Successfully completing the demanding engineering tests established by UL, respected as a world leader in product safety certification, is a testament to the safety and commercial integrity of our Power Pack. The bar that this UL testing program has set is very high and will assure the consumer that any fuel cell product that meets these criteria is safe for use.

"Our customers and potential customers have been awaiting the results of these tests demonstrating that our Power Packs meet the high level of UL standards and consequently, with the UL Listing, we anticipate an even greater pace of orders for Power Packs. Initially, we expect to produce Power Packs on our semi-automated line and then deliver much larger quantities from our fully automated line. Construction of that automated line is on target; the line is in the process of validation in Ismeca's facilities in Switzerland. As soon as validation is completed, the line will be dismantled and sent to Celestica's facilities in Ireland where it is planned to be re-assembled, tested and placed in production.

"Once our production team is satisfied with the operations of the first fully automated line, we anticipate ordering one or more additional lines from Ismeca, depending on the level of order flow. We are told that each new line will require about ten months to build and make operational. The recent private sale of our Series A 7.25% Convertible Perpetual Preferred shares by Citigroup Global Markets, Inc., including the exercise of its over-allotment option, has provided us with gross proceeds of $57,500,000. We believe that these proceeds, together with other available corporate funds, leaves us sufficiently capitalized -- with no long term debt -- to carry out our planned program for additional lines.

"We will have the opportunity at The Consumer Electronic Show (CES) in Las Vegas, Nevada, that runs from January 8th to 11th, to meet with many customers and potential customers. We will have a booth in the Innovations Center demonstrating our Power Pack and other capabilities of our technology. We look forward to these meetings with considerable anticipation."

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.