| Protonex Technology
Corporation, a leading provider of advanced fuel cell power systems for
sub-kilowatt portable, remote and mobile applications, has been awarded
a $3.5 million contract with the US Army Research Office to develop a 250-watt
portable fuel cell power source that is significantly smaller, lighter,
quieter and more efficient than alternative battery or generator systems.
The system will include a methanol reformer and will initially target military
applications such as field battery charging and auxiliary power. This contract
is the largest Protonex has received to date, and brings the total program
value of the Company's secured government development or joint development
contracts to more than $11 million.
Under the terms of the contract,
Protonex will rapidly evolve its current 250-watt fuel cell system and
methanol reformer prototypes into an integrated, mission-specific and ruggedized
fuel cell power source for use by the US Army, Special Operations Command
and Marines. The $3.5 million award will cover a comprehensive 12-month
program of continued development, low-volume production and initial product
delivery for customer field testing. Protonex will also use the funds to
lay the groundwork for utilizing other fuels, including propane, military
diesel and biodiesel, in future fuel cell power systems.
"This contract represents major customer
support for our previously announced line of reformer-based fuel cell products.
We are very pleased to have the opportunity to provide US soldiers with
significantly enhanced power and mission capabilities," stated Scott Pearson,
CEO, Protonex. "We also expect to leverage this funding and other advanced
product development work into our core products for both military and commercial
customers."

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