Manhattan Scientifics Begins Plan to Manufacture Fuel Cells

14 June 2001

Manhattan Scientifics has completed a one-year productization effort and is seeking to build a pilot production line leading to volume manufacturing of its proprietary NovArs fuel cells. The company is in discussions with several potential joint venture partners in the USA, Asia and Europe for this purpose. The NovArs fuel cell is a medium power fuel cell capable of providing power for personal transportation, portable electronics, power tools, emergency home generators, home and outdoor maintenance appliances, portable defense electronics and portable power systems for home and recreation.

The anticipated pilot production line would use new processes, materials, machines and tools created during the last year to validate and fine-tune the company's final volume production line design. This would provide the capability to build and test certify the fuel cell product. Its modular design could be replicated anywhere in the world, facilitating mass production.

Marvin Maslow, CEO of Manhattan Scientifics, said, ""We have begun the process of identifying potential partners and/or contract-manufacturers and we are already in serious discussions with several of them. We are also exploring the opportunity to invest our own capital in the pilot alongside other participants. We intend that the line's initial output will be sufficient to support the early fuel cell needs of our current customers, which include Electrolux, the U.S. Army and Aprilia in addition to a list of other possible volume customers.""

Jack Harrod, COO of Manhattan Scientifics, said, ""NovArs technology is optimized for portability. We believe it is an industry benchmark for small and lightweight fuel cells. Typical power output ranges from two watts to as high as three kilowatts. The fuel cell's unique design uses advanced composite materials and sealing technology to minimize size and weight. The system is a hydrogen/air system using hydrogen as fuel. It can supply our customers' power needs at normal pressures with a minimum of ancillary equipment.""

NovArs GmbH is a ""unit"" of Manhattan Scientifics. NovArs was founded in Germany in 1998 to develop advanced fuel cells, materials and concepts. It was founded by Dr. Arthur Koschany, a scientist with six years' experience in the development of large fuel cell systems for automotive applications. Manhattan Scientifics acquired both current and future global intellectual property rights to NovArs' unique technology in 1999. Manhattan Scientifics is providing R&D funding to NovArs to further develop its technologies.

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