Protonex Acquires Solid Oxide Fuel Cell and Fuel Reforming Leader Mesoscopic Devices

Business Wire, March 26, 2007

Under the terms of the transaction, Protonex will pay a consideration of cash and stock for the entire issued capital of Mesoscopic Devices. The cash component of the consideration is $3.2 million payable at closing but subject to a working capital adjustment. The total stock component is comprised of 5,102,983 common shares in Protonex, 4,082,385 of which are subject to various lock-up restrictions between six and 30 months in duration and 1,020,598 of which are tied to meeting unit sales milestones in future years.

Notes to Editors

About Protonex Technology Corporation

www.protonex.com

Protonex Technology Corporation develops and manufactures compact, lightweight and high- performance fuel cell systems for portable power applications in the ten to 1,000-watt range. The Company's fuel cell systems are designed to meet the needs of military and original equipment manufacturer (OEM) customers for off-grid applications underserved by existing technologies by providing customizable, stand-alone portable power solutions and systems that may be hybridized with existing power technologies. The Company is based in Southborough, Massachusetts.

About Mesoscopic Devices, LLC.

www.mesoscopic.com

Mesoscopic Devices, LLC., is a privately held Colorado company with business offices in Broomfield, CO. Mesoscopic Devices has developed industry-leading solid oxide fuel cell (SOFC) technology, direct methanol fuel cell (DMFC), fuel reforming, and desulfurization systems. Mesoscopic Devices designs, fabricates and manufactures portable fuel cell generators for industrial, commercial and military applications. The company's current focus is on developing 10 to 1,000-watt portable power solutions with industry-leading power density and efficiency.

This announcement includes statements which are, or may be deemed to be, "forward-looking statements". All statements other than statements of historical facts included in this announcement, including, without limitation, those regarding Protonex' financial position, business strategy, plans and objectives of management for future operations (including development plans and objectives relating to Protonex' products and services) are forward-looking statements. By their nature, such forward-looking statements involve known and unknown risks, uncertainties and other important factors that could cause the actual results, performance or achievements of Protonex to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements. These factors include but are not limited to those described in the Admission Document issued in connection with the Placing.

Forward-looking statements may and often do differ materially from actual results. Any forward-looking statements in this announcement speak only as at the date of this announcement and are subject to risks relating to future events and other risks, uncertainties and assumptions relation to Protonex' operations, results of operations, growth strategy and liquidity.