Millennium Cell and Icelandic New Energy Announce Hydrogen Fuel Project

REYKJAVIK, Iceland - July 30, 2003 -- Millennium Cell Inc., a leading technology company that has created a patented process to safely store, generate and deliver pure hydrogen, and Icelandic New Energy Ltd. today announced a project which will evaluate the potential to use sodium borohydride to export energy from Iceland. Sodium borohydride is an integral part of Millennium Cell's Hydrogen on Demand(TM) technology. Funding for this project will come from the Icelandic Research Council.

"Millennium Cell is pleased to partner with Icelandic New Energy on a project that could have far-reaching consequences," said Dr. Stephen S. Tang, Millennium Cell President and CEO. "Iceland has vast resources of natural geothermal and hydro power to produce hydrogen, which is widely recognized as the future's most promising energy carrier. Our technology, which safely stores, transport and delivers hydrogen, is well-suited for Iceland's vision to export renewable energy. The purpose of this project is to characterize the feasibility and economics of that vision."

"The mission of Icelandic New Energy is to investigate the potential for eventually replacing the use of fossil fuels in Iceland with hydrogen and create the world's first hydrogen economy," said Jon Bjorn Skulason, General Manager, Icelandic New Energy. "We are very enthusiastic about Millennium Cell's knowledge and expertise in this arena and believe together we can creatively find solutions for promoting the use of Icelandic energy."

The Millennium Cell Hydrogen on Demand(TM) system safely generates high-purity hydrogen from environmentally friendly raw materials. The produced hydrogen can be used to power a fuel cell or a hydrogen-burning engine. The "hydrogen" is stored at ambient conditions in a non-flammable liquid "fuel" solution of sodium borohydride. The process supplies pure hydrogen for energy applications without the need (and associated energy penalties) for compression or liquefaction. Hydrogen produced by this system can be used for numerous applications, addressing a wide range of power requirements from mobile phones to transportation.

About Millennium Cell

Founded in 1998, Millennium Cell is based in Eatontown, New Jersey, U.S.A., and has developed a multi-faceted patent portfolio, which the company is pursuing in the United States and internationally surrounding a proprietary process called Hydrogen on Demand(TM). In the process, the energy potential of hydrogen is carried in the chemical bonds of sodium borohydride, which in the presence of a catalyst, releases hydrogen. The primary input components of the reaction are water and sodium borohydride, a derivative of borax. Borax is found in substantial natural reserves globally. Millennium Cell also has a patented design for boron-based longer-life batteries. For more information, visit www.millenniumcell.com or call 866-532-2783.

About Icelandic New Energy Ltd.

Icelandic New Energy Ltd. is an SME which is a spin-off from research work at the University of Iceland, the Ministry of Industry in Iceland, energy companies and foreign partners. It is an innovation company with the main purpose of working on innovative projects that can/will lead the way to transform the conventional society (fossil fuel) to a hydrogen society. Its task is to lead new projects that will support using hydrogen as an alternative energy to reduce greenhouse gas emissions, increase energy efficiency and protection of depleting natural resources.