Millennium Cell Awarded Phase II Funding for Common Core Power Production Program With DoD

Business Wire, August 29, 2005

EATONTOWN, N.J. -- Millennium Cell Inc. (NASDAQ: MCEL), a leading developer of hydrogen battery technology, announced today the award of Phase II funding to continue its program with the U.S. Air Force's Advanced Power Technology Office (APTO) and the Department of Defense (DoD) Fuel Cell Test and Evaluation Center (FCTec) operated by Concurrent Technologies Corporation (CTC). In the second year of the program, Millennium Cell will develop an advanced solid borohydride fuel module for the 5kW system that was successfully demonstrated at FCTec during the program's first phase. Millennium Cell will deliver the design and critical components of the module that will be constructed and tested by CTC personnel at FCTec.

The DoD contracted with CTC to develop Common Core Power Production (C2P2) technology for the APTO by utilizing fuel cell systems as interchangeable power sources for military equipment. The solid fuel systems developed by Millennium Cell under this program will support the broad C2P2 initiatives of fielding affordable, integrated, reliable, zero-emissions, zero-grid military and civil aircraft service event capability for the U.S. military.

"This follow on award is evidence of our ability to deliver against C2P2 program objectives and further demonstrates the scalability of our hydrogen storage technology for use in a variety military and industrial applications," commented Adam Briggs, Millennium Cell President. "We are pleased to be working with Concurrent Technologies and FCTec to deliver this technology to the U.S. military."

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 Air Force APTO

The Mission of the APTO is to integrate Advanced and Alternative Power Technologies into Aerospace Ground-Support Equipment (AGE), vehicles, Munitions Material Handling Equipment (MMHE), and Basic Expeditionary Airfield Resource (BEAR) equipment in an effort to support the entire spectrum of global military engagements. The APTO collaborates with other branches of the military, private industries and universities for the research and development and acceleration of advanced power capabilities.

About Concurrent Technologies Corporation

Concurrent Technologies Corporation (CTC) is an independent, nonprofit, applied research and development professional services organization providing management and technology-based solutions to a wide array of clients representing state and federal government as well as the private sector. Established in 1988, CTC operates from more than 35 locations with a staff of over 1,300 employees. For more information about CTC, please visit www.ctc.com.

About FCTec

The Fuel Cell Test and Evaluation Center (FCTec) is operated by Concurrent Technologies Corporation (CTC) for the U.S. Army Corp of Engineers' Engineer Research and Development Center/Construction and Engineering Research Laboratory (ERDC/CERL). The FCTec is a national resource facility for the independent, unbiased testing and validation of fuel cell systems for both military and commercial applications. The FCTec's primary goal is to significantly accelerate the development and commercialization of fuel cell systems, fuel infrastructure and fuel processor systems through comprehensive research, development, test and evaluation, integration, and optimization services. For more information about the FCTec, please visit www.fctec.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. These 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 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) our ability to secure government funding of our research and development and technology demonstration projects; (v) our ability to enter into agreements with collaborators and strategic partners and the failure of our collaborators and strategic partners to perform under their agreements with us; (vi) our 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 our hydrogen fuel storage and delivery system, (vii) our ability to protect our intellectual property, (viii) our ability to achieve budgeted revenue and expense amounts and (ix) other factors detailed from time to time in Millennium Cell's filings with the Securities and Exchange Commission.