Millennium Cell Awarded U.S. Army Phase II SBIR Contract to Develop Modular Power System with ReliOn

July 6, 2006

EATONTOWN, N.J.–(BUSINESS WIRE)–July 6, 2006–Millennium Cell Inc. (NASDAQ: MCEL), a leading developer of hydrogen battery technology, today announced that it has been awarded a $730,000 Phase II Small Business Innovation Research Program (“SBIR”) contract by the U.S. Army Tank-automotive and Armaments Command (“TACOM”). Under this two year program, the Company and its subcontractor ReliOn, a Spokane, WA based fuel cell manufacturer, will develop a fully modular 500 watt power system with the ability to use available field water with a variety of impurities.

The power system will combine Millennium Cell’s Hydrogen on Demand® technology and ReliOn’s Proton Exchange Membrane (PEM) fuel cell to create a 500 watt hydrogen battery. The completed system will be evaluated by Selfridge Air National Guard Base and have the capability to support a number of military uses including silent watch power, Improvised Explosive Device (IED) countermeasure systems, battery charging, and critical backup power for telecom as well as communications equipment for air traffic control. The Company will explore potential commercial applications for the modular hydrogen storage system as well.The standardized 500 watt hydrogen storage modules will be designed to run in parallel or in series with a modular fuel cell to reach power ranges of up to 5kW and can provide for extended run times for applications as needed at lower power ranges. ReliOn, the leader in the development and marketing of modular, cartridge-based, PEM fuel cells for stationary and backup power applications, will provide the fuel cells and integration support for the program. Concurrent Technologies Corporation of Johnstown, PA will test the system.

“This contract will fund the development of a flexible, fully modular, efficient and lightweight power source that can provide the military with an inherently safe, state-of-the-art solution for a variety of applications,” commented H. David Ramm, Millennium Cell Chief Executive Officer. “In addition, this project is our first with ReliOn, a leading PEM fuel cell developer focused on distinct markets from our existing fuel cell partners. We look forward to the opportunity to work with ReliOn on this program and to explore other ways we can work together in the future.”

“ReliOn is very excited to participate in this important program with Millennium Cell”, stated ReliOn President and CEO, Gary Flood. “With more than 850kW of commercial product sold, our modular, redundant approach to fuel cells is field-proven. In combination with Millennium Cell’s modular fuel solution, this project will provide a highly reliable power solution for the U.S. Army.”

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 www.millenniumcell.com.

About ReliOn

ReliOn is a leader in the development and marketing of modular Proton Exchange Membrane (PEM) fuel cell products. The company markets commercially available fuel cell products using its patented Modular Cartridge Technology®. ReliOn products are available domestically and internationally for commercial and industrial backup applications in the 600-Watt to 12-kilowatt range. ReliOn fuel cells are certified to multiple safety and performance standards. For more information, visit www.relion-inc.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.

Contact:
Brod Group, LLC
Betsy Brod, 212-750-5800


Source: Millennium Cell Inc.Source: Yahoo

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