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Posted on  

October 8, 2001

Medis Technologies Achieves Major Milestone in Development of Its Proprietary Fuel Cell Technology

Medis Technologies Ltd. announced Thursday that it had achieved a major milestone in the development of its proprietary direct liquid ethanol (DLEF) fuel cell technology, specifically, in the use of its fuel cells as the source of power to operate a working model of its Power Pack cell phone charger. Medis plans to demonstrate its Power Pack product in New York City during next week.

Medis Power Pack is capable of directly charging a cell phone as fully as if the cell phone was connected by a charger to a wall socket. In its current stage of development, the Power Pack consists of two one-watt DLEF fuel cells with a DC to DC converter. Each fuel cell is 3.40 inches long by 1.65 inches wide by 0.70 inches deep and weighs 70 grams. The fuel cells use an internal concentration of ethanol as its fuel source. There are no external fuel feeders, water management systems or other external support systems. The Power Pack is capable of fully charging the cell phone in the regular time required by the phone for charging. It is not trickle charged in small increments. At present, the Power Pack is already capable of charging the phone twice on each fueling.

``We believe that this is a giant stride towards the commercialization of Medis' first fuel cell powered product,'' said Robert K. Lifton, Chairman and CEO of Medis. ``It is becoming increasingly evident that there is a large scale demand for an easily portable charger that can keep the cell phone charged at all times, yet is inexpensive and convenient to use. Moreover, as cell phones add additional capabilities (functionalities) such as internet access, video and color they will require more battery power and longer lasting power to satisfy the consumer. The Medis Power Pack can provide an attractive solution. We also expect that the Medis charger will find a particularly large market in countries like China where cell phone use is expected to expand at a rapid rate but where people ride more bicycles than cars and where electrical connections may be less readily available than in the United States and other countries.''

``The Power Pack product we will demonstrate is on a ''breadboard. Prior to its commercialization targeted for next year, we plan to further reduce its size and weight and expand its power and operating time,`` continued Mr. Lifton. ''Since the fuel cells are currently made by hand, we expect that engineering design and machining consistent fuel cells will sharply increase their efficiency. Also we look to improve performance by developing internally or through outsourcing arrangements a more efficient DC to DC converter than the one we are now using. Our goal is a commercial Power Pack, which is at least 25% smaller and lighter than our current model and capable of charging a cell phone up to six times with each refueling. Refueling is planned by using an inexpensive fuel cartridge, which we will look to sell for $1.00 per cartridge in the United States.``

Mr. Lifton added that ``During the period we are demonstrating the fuel cell Power Pack in New York, we will be meeting with several multinational companies to discuss potential joint efforts to further develop fuel cell products using our proprietary technology. We are interested in companies which offer capabilities in production engineering, production and marketing of our fuel cell products.''

Members of the financial community or media who are interested in viewing a demonstration of the Power Pack should contact Devin Sullivan (dsullivan@equityny.com) or Adam Prior (aprior@equityny.com) of the Equity Group or Robert K. Lifton of Medis Technologies for further information.



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