Millennium Cell Awarded Program to Develop Enhanced Fuel Cartridge Design for U.S. Air Force

Business Wire, May 3, 2007

Lightweight Cartridge to Provide Unlimited Shelf Life and Increased Energy Density for Military Applications

EATONTOWN, N.J. -- Millennium Cell Inc. (NASDAQ: MCEL), a leading developer of hydrogen battery technology, today announced that it has been awarded a contract with the U.S. Air Force Research Laboratory ("AFRL") to extend the capabilities and performance of its Hydrogen on Demand[R] based fuel cartridges for current and future soldier power systems. The primary focus of this effort is to enable the flexibility for field-hydration of cartridges so that the warfighter can activate the fuel by adding field-quality water at the point-of-use on missions. The new dry cartridge design is projected to enable effective energy densities of over 850 Wh/kg for the fuel cell system, five times better than the BA-5590 battery in use today.

The cartridge will contain a straightforward user interface and companion water filling device for mixing the on-board dry fuel blend with water in the field. The cartridge will also be designed to accommodate even small quantities of water and remain operational.

This program will leverage work done for AFRL under a Small Business Innovation Research (SBIR) award in 2006 which was focused on studying the operational characteristics of Millennium Cell's Hydrogen on Demand[R] technology utilizing field waters of varying qualities. The results of this work show that it is possible to run Hydrogen on Demand[R] cartridges with little or no filtration in battlefield scenarios.

Michael Rottmayer, AFRL Program Manager stated, "The Air Force is pleased to continue our work with Millennium Cell's technology to enable multiple mode-of-use fuel cartridge flexibility. This technology shows great promise by offering multiple options for fuel cell field operability while reducing the weight burden for the warfighter in the field."

The prototype fuel cartridge is expected to be complete in early 2008. The system will be delivered at that time to AFRL with a Protonex Technology Corporation (LSE: PTX) ProCore 50[TM] fuel cell system (formerly known as the "P2"). This cartridge technology will also be available for integration into small Unmanned Aerial Vehicles or other military applications where unlimited shelf life, high energy density, and flexibility of use are critical.

"We are pleased to be given this opportunity by the AFRL to develop a new easy-to-use cartridge design that will result in infinite shelf life and lower carrying weight for the Protonex ProCore 50 fuel cell system," commented Adam P. Briggs, Millennium Cell's President. "We are encouraged by the military's continued investment in future generations of products using our Hydrogen on Demand technology."

About Millennium Cell

Millennium Cell is a leader in the development of hydrogen battery technology used to power portable applications. Through its proprietary Hydrogen on Demand([R]) fuel cartridges and PowerSkin[TM] fuel cell modules, the Company provides increased energy density resulting in longer runtime and lighter weight in a compact space. The Company is working with market partners to meet the demand for a better battery in the military, medical, industrial and consumer electronics markets. For more information, visit www.millenniumcell.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 and are subject to risks. 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, many of which are outside of our control, 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) Millennium Cell's 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 its hydrogen fuel storage and delivery system and its business plan; (v) Millennium Cell's ability to protect its intellectual property; (vi) Millennium Cell's ability to achieve budgeted revenue and expense amounts; (vii) Millennium Cell's ability to generate revenues from the sale or license of, or provision of services related to, its technology; (viii) Millennium Cell's ability to form strategic alliances or partnerships to help promote our technology and achieve market acceptance; (ix) Millennium Cell's ability to generate design, engineering or management services revenue opportunities in the hydrogen generation or fuel cell markets; (x) Millennium Cell's ability to secure government funding of its research and development and technology demonstration projects; and (xi) other factors discussed under the caption "Risk Factors" in Millennium Cell's Annual Report on Form 10-K for the year ended December 31, 2006.