Manhattan Scientifics unveils portable 3kW fuel cell for scooters and back-up power

New York City, July 26, 2001 - Manhattan Scientifics, Inc. (MHTX) announced today that its German-based NovArs unit has successfully developed and tested a small, ultra-light 3kW fuel cell system. Because of its light weight and compact size, the proprietary fuel cell system is highly portable. This makes it ideal for small vehicles such as electric scooters, golf carts as well as emergency home generators, RVs and other recreational use such as camping. The new hydrogen-fueled 3kW is based on the basic design and concept of the previously announced NovArs fuel cell system currently being tested by Electrolux (US), Aprilia, S.p.A. and the U.S. Army. The new, higher-powered unit is capable of providing emergency power for essential elements in a typical American home. The earlier announced NovArs fuel cell currently being tested on bicycles and vacuum cleaners was 670W. The new unit is also capable of powering fast electric motor scooters. The fuel cell uses advanced composite materials and unique technologies to minimize size and weight. The total system including fans, valves, electronics, cables and tubes weighs 5.9 kilograms (13 pounds). The unit with all peripherals, not including the hydrogen source, measures 340 mm x 246 mm x 158 mm (13.4 in x 9.7 in x 6.2 in). Versions of this configuration can be scaled down from 3 to 1kW to fit a wide range of market needs. Chief Operating Officer Jack Harrod said, "The successful tests of this unit prove our ability to scale up the patented NovArs design. The market opportunities for NovArs have now broadened significantly. The largest market for fuel cells in this power range are small two-wheeled vehicles such as scooters. Worldwide more than 10 million such vehicles are estimated to be produced each year. The market entry of fuel cells for these vehicles could significantly reduce air pollution caused by the currently used two-stroke engines, particularly in Asian cities. We are currently in advanced discussions with several potential business partners including large industrial manufacturers as well as customers to evaluate various business models for rolling out and commercializing this important new technology." NovArs GmbH is a unit of Manhattan Scientifics. NovArs was founded in Germany in 1998 to develop advanced fuel cells, materials and concepts. 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 achieve maturity of the technology and take the first steps towards commercialization. Manhattan Scientifics, Inc. is a technology development company working in the fields of alternative energy, holographic data storage and computer touch technology. The company's development laboratories are located in Los Alamos and Albuquerque, New Mexico and Passau, Germany. Its executive facility is located in New York City. The foregoing press release contains forward-looking statements, including statements regarding the company's expectation of its future business. These forward-looking statements are based largely on the company's expectations and are subject to a number of risks and uncertainties, certain of which are beyond the company's control. Actual results could differ materially from these forward-looking statements as a result of a variety of factors. These include but are not limited to, successfully completing the research and development with respect to the fuel cells and other technologies, successfully commercializing the fuel cells and holographic storage devices for mass production, successfully protecting the company's patents, and effective significant industry competition from various entities whose capabilities far exceeds the company's. NovArs GmbH, ERDI and Novint Technologies, Inc. are independent contractors to Manhattan Scientifics, Inc., which acquired and owns certain intellectual property of these companies. In light of these risks and uncertainties there can be no assurances that the forward-looking statements in this press release will in fact transpire or prove to be accurate.