Medis Issues Industry-Wide Invitation to Fuel Cell Comparisons   

Medis Technologies Ltd. (NASDAQ:MDTL) announced today that it has successfully demonstrated its refuelable military Power Pack operating an advanced PDA and its disposable Power Pack products charging and operating cell phones and digital cameras at three conferences and meetings in the last two weeks.

On June 14-17, 2004, at the "4 Power Sources" conference held in Philadelphia, sponsored by elements of the United States military, the Medis refuelable Power Pack operated as the primary power source for an advanced ruggedized PDA developed by C4 systems of General Dynamics Corporation and the Medis disposable Power Pack operated to charge the batteries of a cell phone and digital camera.

On June 22, 2004 in Palo Alto, CA and June 24, 2004 in New York City, Medis again demonstrated the refuelable and disposable Power Pack products providing power to these devices. In the last two meetings, in addition to Medis, presentations were made by executives of Flextronics International and Eastman Kodak Global Manufacturing Services, who are working closely with Medis on production of Medis fuel cell products; by executives of General Dynamics, Medis marketing partner for its fuel cell products for portable devices for the US Department of Defense and Homeland Security; and by Kensington Technology Group, who will be distributing Medis Power Pack products in a number of markets world-wide.

"This was a highly gratifying series of conferences and meetings. Our products met all of our expectations and the presentations by our strategic allies were very supportive and informative," said Robert K. Lifton, Chairman and CEO of Medis Technologies. "The Power Pack that charged the cell phone and digital camera batteries is 2 3/4 inches by 2 inches by 1.5 inches. It operated with no discernable heat, and was capable of operating in any orientation and repeatedly fully charged the batteries in little more than the time it would take to charge these devices through a wall socket."

In Mr. Lifton's presentations, he reported that the energy capacity of Medis fuel cell (the amount of power it delivers over a period of time related to its weight) has already reached 350 watt/hours per kilogram operating at room temperature, which is substantially higher than the energy capacity of lithium ion batteries presently used in cell phones and other portable devices. Based on its rate of progress, Medis expects that the energy capacity of the product it delivers to the market will be even greater than that.

He then added that, "Medis' scientists believe, based upon their knowledge of fuel cells being developed by others, that the level of energy capacity achieved by our fuel cells while operating at or near room temperature is greater than that of any other micro fuel cell developed in the world. But the only way to know the comparative facts about different micro fuel cell capabilities, is to actually run them side by side, where those of us in the micro fuel cell field compare performances of our fuel cells. We, at Medis, invite other fuel cell developers to join us in comparing the energy capacity of our respective micro fuel cells, operating at or near room temperature. This should be done in a public forum where the various micro fuel cells are tested by an independent source by measuring the discharge characteristics of the micro fuel cell operating at room temperatures over a period of time until its power has expired. The results of this should be very illuminating for all the parties interested in fuel cells as a power source for portable devices, whether in the government or the private sector."

Medis Technologies is involved in the development of highly advanced proprietary technology products primarily related to sources of clean energy for the 21st Century. Medis' primary focus is on direct liquid fuel cell technology. Its business strategy is to license or sell its technologies to, or enter into joint ventures with, large international corporations or sell its products to end users through retail outlets and service providers. In addition to its fuel cell technology, Medis' product pipeline, in varying stages of development, includes inherently conductive polymers, the toroidal engine and compressor and stirling cycle system. Medis has also developed the CellScan with many potential applications relating to disease diagnostics and chemo sensitivity.

This press release may contain forward-looking statements, which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve risk and uncertainties, including, but not limited to, the successful completion of product development, the success of product tests, commercialization risks, availability of financing and results of financing efforts. Further information regarding these and other risks is described from time to time in the Company's filings with the SEC.