New Prototype Cartridge Demonstrates over 500 Wh/kg with Protonex Fuel Cell Military Testing Continues with Delivery of Additional P2 Soldier Power Systems
EATONTOWN, N.J.--(BUSINESS WIRE)--Millennium Cell Inc. (NASDAQ: MCEL - News), a leading developer of hydrogen battery technology, today announced that the Company has developed and demonstrated for its U.S. military market partners and potential customers the next generation hydrogen fuel cartridge technology. The prototype cartridge was coupled to a fuel cell system provided by the Protonex Technology Corporation (AIM:PTX.L). This demonstration showcased a fuel cartridge operating the Protonex P2 unit at 33% higher power and greater than 35% more energy per unit weight than previously achieved and exceeded the 500 Wh/kg system energy density targets established by the military. The program plan is to exceed 550 Wh/kg before final release of the new cartridge technology which is scheduled to be used in the Company's licensees' products in 2007.

Adam Briggs, Millennium Cell President stated, "The Millennium Cell and Protonex collaboration over the past two years has resulted in a robust, light weight, energy dense Hydrogen on Demand® fuel cartridge that is simple to use. After the initial P2 units were delivered earlier this year, our respective teams re-focused on increasing the performance metrics of the P2 product to extend our advantage over conventional batteries. Due to the high energy density of our sodium borohydride fuel, we now can provide more than three times the energy density of standard military batteries currently in use."

The P2 unit was developed by the two companies under multiple contracts with the Air Force Research Lab and the U.S. Army Research Lab. This battery is the portable energy supply for the Battlefield Air Operation kit that has been developed by Protonex and Northrop Grumman under the Air Force's BRITES Spiral 2 program. Earlier this year, Millennium Cell was awarded a $4.0 million delivery order from the Air Force to develop the next generation of sodium borohydride based fuel cartridge technology to address higher energy density targets for future power sources. Successful demonstration of 500 Wh/kg is consistent with the objectives of that program.

A delivery of twenty P2 units and sixty fuel cartridges to the Concurrent Technology Corporation's ("CTC") Fuel Cell Test Center began earlier this month. This delivery is expected to be completed in January and CTC will begin a test plan at that time that will evaluate the P2 in military standard conditions. This body of test results from this study will provide third party validation of the performance of the P2 system and is expected to be used by military agencies to make purchase decisions regarding this system.

About Millennium Cell
Millennium Cell develops hydrogen battery technology through a patented chemical process that safely stores and delivers hydrogen energy to power portable devices. The borohydride-based technology can be scaled to fit any application requiring high energy density for a long run time in a compact space. The Company is working with market partners to meet demand for its patented process in four areas: military, medical, industrial and consumer electronics. For more information, visit http://millenniumcell.com

Cautionary Note Regarding Forward-looking Statements:
This press release may include statements that are not historical facts and are considered ``forward-looking" within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect Millennium Cell's current views about future events and financial performance and are subject to risks. Forward-looking statements are identified by their use of terms and phrases such as "believe," "expect," "plan," "anticipate," "on target" and similar expressions identifying forward-looking statements. Investors should not rely on forward-looking statements because they are subject to a variety of risks, uncertainties and other factors, many of which are outside of our control, that could cause actual results to differ materially from Millennium Cell's expectations, and Millennium Cell expressly does not undertake any duty to update forward-looking statements. These factors include, but are not limited to, the following: (i) the cost and timing of development and market acceptance of Millennium Cell's hydrogen fuel storage and delivery system; (ii) the cost and commercial availability of the quantities of raw materials required by the hydrogen fuel storage and delivery systems; (iii) competition from current, improving and alternative power technologies; (iv) Millennium Cell's ability to raise capital at the times, in the amounts and at the costs and terms that are acceptable to fund the development and commercialization of its hydrogen fuel storage and delivery system and its business plan; (v) Millennium Cell's ability to protect its intellectual property; (vi) Millennium Cell's ability to achieve budgeted revenue and expense amounts; (vii) Millennium Cell's ability to generate revenues from the sale or license of, or provision of services related to, its technology; (viii) Millennium Cell's ability to form strategic alliances or partnerships to help promote our technology and achieve market acceptance; (ix) Millennium Cell's ability to generate design, engineering or management services revenue opportunities in the hydrogen generation or fuel cell markets; (x) Millennium Cell's ability to secure government funding of its research and development and technology demonstration projects; and (xi) other factors discussed under the caption "Investment Considerations" in Millennium Cell's Annual Report on Form 10-K for the year ended December 31, 2005.

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