Millennium Cell, Dow achieve power systems milestone

Millennium Cell Inc., a leading developer of hydrogen battery technology, on July 26 announced that Milestone 2 of the joint development program with The Dow Chemical Company has been achieved. This milestone was accomplished through the delivery to the U.S. Air Force of Protonex Technology Corporation’s ProCore C50 and C720 fuel cell power products which utilize Millennium Cell’s Hydrogen on Demand technology. These 50-watt power systems are currently being tested at the U.S. Department of Defense Fuel Cell Test and Evaluation Center which is operated by Concurrent Technologies Corporation in Johnstown, Pa.

“An important focus of this three-year joint development program with Dow was to move Millennium Cell’s Hydrogen on Demand liquid fuel technology from the lab into commercially viable products,” said H. David Ramm, Millennium Cell’s chief executive officer. “The achievement of the second milestone marks an important step in the maturation of our hydrogen storage technology which we will continue to advance toward commercialization. Additionally, through this collaboration with Dow, we have identified a new hydrogen fuel technology that is especially well-suited for the consumer electronics market. As a result, we will focus our third and final milestone of this joint development agreement on the advancement of this new technology, Solid State HOD.”

Millennium Cell and Dow have been collaborating on an innovative hydrogen storage technology (Solid State HOD) which has unlimited shelf life, no moving parts, and can significantly extend the runtime of fuel cell powered consumer electronics devices. Based on the results to date, the companies have modified their joint development program in which the final milestone (Milestone 3) will focus exclusively on Solid State HOD for consumer electronics applications. Further details about the milestone change and other program modifications are included in Millennium Cell’s Current Report on Form 8-K which is being filed today with the Securities and Exchange Commission.

Milestone 3 calls for the development of a pre-production hydrogen storage cartridge capable of addressing energy storage needs for a portable consumer application for a large volume market such as mobile phone handsets, chargers, two-way radios and laptop computers. Simultaneous with the development of this cartridge, Millennium Cell will focus on securing a commercialization partner, such as a major consumer electronics original equipment manufacturer (OEM), capable of designing this new technology into products. Securing this commercialization partner would mark a successful end to the joint development program between the two parties.

“We are very excited about the results and pace of progress on our Solid State HOD technology since its conception approximately two years ago. Dow’s expertise in materials, chemistry, and thermodynamics has been instrumental in the development of this exciting technological advancement,” said Ramm.

“Millennium Cell’s Solid State HOD technology has the potential to exceed current and forecasted battery performance. Consumer electronics markets can benefit from a better power source and we believe that fuel cells can play a significant role in the future of portable power. Dow is pleased to continue our relationship with Millennium Cell and we look forward to delivering a proven technology to a commercialization partner at the end of the joint development program in 2008," said James H. Plonka, Dow vice president for corporate venture capital.

In April 2005, Millennium Cell and Dow entered into a three-year, milestone-driven joint development program to collaborate on the development and commercialization of portable fuel cell systems for use in consumer electronics and military applications. These hydrogen batteries are based on Millennium Cell’s patented Hydrogen on Demand technology and proton exchange membrane fuel cells to convert hydrogen and oxygen to electricity. Since the program’s inception, Dow has been providing a combination of business and technical resources to aid in the achievement of these milestones.