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UltraCell Receives Funding from U.S. Army CERDEC for XX25 Methanol Micro Fuel Cell System for...

LIVERMORE, Calif. -- UltraCell Corporation, a leading manufacturer of high performance micro fuel cells for portable power, announced today that it has received a contract award from the U.S. Army Communications-Electronics Research, Development, and Engineering Center's (CERDEC) Army Power

Division to accelerate development of the XX25(TM), a 25-watt reformed methanol fuel cell, for use as a soldier power device.

The contract will drive advanced system design for the UltraCell unit to operate in extreme operating temperature and withstand severe shock and vibration and other Mil-Spec required environments. In addition, the XX25 has up to a 75% weight advantage over currently available military rechargeable batteries, based on a 72-hour mission at 20 watts. (Longer missions at higher power levels will show greater improvements.) The XX25 also reduces operational costs through the reduction of throwaway primary batteries and the logistic burden of recharging batteries.

"This award reflects the continued advancement of the technology readiness level of the XX25," noted Beth Bostic, CERDEC Fuel Cell Team Leader, "and the continued commitment of CERDEC in the development of Soldier power fuel cell units for military adaptation and transition."

In addition to the military's field testing of the XX25, UltraCell is now accepting lead beta site customers in critical markets for testing a commercial version, the UC25(TM).

"We are encouraged by the continued interest of CERDEC and the U.S. military in the XX25," said James Kaschmitter, CEO of UltraCell, "It supports our current efforts to bring the unit to full production later this year, and the UC25 commercial version, early next year."

UltraCell's methanol micro fuel cell systems provide "Totally wireless - portable power anytime, anywhere"(TM). Both the XX25 and UC25, for example, will be able to run a ruggedized laptop computer for up to three working days on a single fuel cell cartridge. It will run other portable electronic devices for emergency responders, operating off of simple and inexpensive methanol cartridges. The XX25 and UC25 can also be configured with large volumes of fuel for weeks of runtime in stationary applications such as remote video monitoring

UltraCell's patented reformed methanol fuel cell (RMFC) system internally generates fuel-cell-ready hydrogen from a highly concentrated methanol solution. The new portable power system thus has the power density of a hydrogen fuel cell but uses readily available, low cost methanol fuel in a convenient, compact cartridge.

About UltraCell

Founded in 2002, UltraCell develops and manufactures complete micro fuel cell systems for portable devices. The company has developed new technologies and intellectual property in the field of methanol-based fuel cells. The company has an exclusive license with Lawrence Livermore National Laboratories for micro fuel cell technology. For more information, please contact: UltraCell Corporation, 399 Lindbergh Ave, Livermore, CA. 94551; Tel.: (925) 455-9400 ; Fax: (925) 455-7750; Email: sales@ultracellpower.com; or visit: www.ultracellpower.com .

About UltraCell Investors

Financial investors in UltraCell include Sevin Rosen Funds (www.srfunds.com), a top-tier venture capital firm funding successful companies since 1981; OnPoint Technologies (www.onpoint.us), a not for profit organization established with funding from the U.S. Army and supporting innovative mobile power initiatives for commercial and military applications; Star Ventures (www.star-ventures.com), an international venture capital group that invests in early-stage, high-tech companies; BankInvest Group (www.biventure.com), a leading Danish investor in new energy technologies; and ES Tech Ventures (www.esfg.pt), a venture capital area of Espirito Santo Financial Group in Portugal.

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