Millennium Cell Inc (fka MCELQ)

[AngelHillCorp]

MCEL News ... Goverment Allocation Funding

Millennium Cell Program to Receive $2.5 Million in 2007 Defense Bill

EATONTOWN, N.J., Oct 02, 2006 (BUSINESS WIRE) -- Millennium Cell Inc. (NASDAQ: MCEL), a leading developer of hydrogen battery technology, today announced that the Company's soldier power program has been allocated $2.5 million of funding in the fiscal year 2007 Defense Appropriations Bill. The bill was signed into law by President Bush on Friday morning.

Under the bill, the U.S. Air Force funded soldier power program will receive a second consecutive year of funding for advanced fuel cartridge development with a goal to reach aggressive energy density targets which cannot be met with traditional battery chemistries. The 2006 Defense Bill provided approximately $1.7 million in total funding, which resulted in the delivery of Protonex Technology Corporation's 30-watt portable soldier power system (the "P2") for evaluation to the U.S. Air Force in May of this year.

New technology developed under the 2007 funding will result in higher energy density fuel cartridges for products from the Company's licensees including the P2 from Protonex and the IFS24 Special Operations Command radio fuel cell system from Jadoo Power Systems.

"We are pleased to receive this allocation for development of advanced fuel cartridge technology for our licensees' products," stated Adam Briggs, President, Millennium Cell. "This represents significant and continued validation by the military of the potential of our technology to lighten the burden on the warfighter. The work to be done in 2007 will further increase our energy density advantage over batteries in use today, which should accelerate the pace of introduction of hydrogen batteries for multiple military applications."

About Millennium Cell

Millennium Cell develops hydrogen battery technology through a patented chemical process that safely stores and delivers hydrogen energy to power portable devices. The borohydride-based technology can be scaled to fit any application requiring high energy density for a long run time in a compact space. The Company is working with market partners to meet demand for its patented process in four areas: military, medical, industrial and consumer electronics. For more information, visit http://millenniumcell.com.