PRESS RELEASES

LEADING FUEL CELL MEMBRANE PROVIDER POLYFUEL RECEIVES ISO 9001 CERTIFICATION
Milestone for PolyFuel; Bellwether for Fuel Cells

MOUNTAIN VIEW, CA – July 10, 2006 – PolyFuel announced today that it recently received the ISO-9001:2000 certification for the design and manufacture of its advanced fuel cell membranes. The ISO-9001 certification, issued by the Underwriters Laboratories, makes PolyFuel one of the earliest suppliers in the nascent fuel cell industry to achieve the standard of quality for the product design and manufacturing processes that will be required for mass commercialization. According to experts, the commercial market for portable fuel cells – designed to power laptop computers, PDAs and cell phones – will gain momentum in early 2007 (see: Commercial Fuel Cells To Take Off In 2007 With “Always On” Lifestyle Setting Demand For “Portable Power.”, PolyFuel, May 20, 2006).

Fuel cell membranes – extremely sophisticated sheets of cellophane-like plastic – enable the creation of small power sources to augment batteries in a variety of everyday devices. But unlike batteries, which must be replaced when exhausted, fuel cells will run indefinitely, as long as they are provided with a supply of fuel. In the case of micro-power fuel cells, the type being developed by many of the world’s largest electronics manufacturers for inclusion in mobile devices, the fuel of choice will be methanol – a readily-available, low cost alcohol that will be marketed in battery-sized cartridges available in convenience stores and elsewhere. When powered with fuel cells, energy-demanding devices such as cell phones equipped to receive digital television broadcasts will finally have enough available power to make their use more than a novelty.

The ISO-9001 Standard, developed by the International Organization for Standards, represents the benchmark by which modern, quality products are designed and manufactured. Thousands of leading manufacturers around the world have attained ISO certification, and the majority of PolyFuel’s customers – primarily consumer electronics “giants” – are not only certified, but expect it of their vendors. In addition, the International Civil Aviation Organization (ICAO) recently approved the carriage and use of micro-power fuel cells – as well as replacement fuel cartridges – in the cabins of commercial aircraft, beginning January 1, 2007 – an application with a clear expectation of high quality.

The certification, received on May 4th, was the culmination of close to two years of effort by PolyFuel to attain a milestone not only for itself, but for the fuel cell industry.

About PolyFuel

PolyFuel (www.polyfuel.com) is the world leader in engineered membranes that provide significantly improved performance in direct methanol fuel cells (DMFC) and hydrogen fuel cells, particularly for portable electronic and automotive applications. The state of the art of fuel cells is essentially that of the membrane, and PolyFuel’s best in class, hydrocarbon-based membranes enable a new generation of fuel cells that for the first time can deliver on the long-awaited promise of clean, long-running, and cost-effective portable power.

PolyFuel has an unmatched capability to rapidly translate the system-level requirements of fuel cell designers and manufacturers into engineered polymer nano-architectures. Such capability – based on PolyFuel’s over 150 combined years of fuel cell experience, world-class polymer nano-architects, and a fundamental patent position covering more than 23 different inventions – also makes PolyFuel an essential development partner and supplier to any company seeking to advance the state of the art in fuel cells. Polymer electrolyte fuel cells built with PolyFuel membranes can be smaller, lighter, longer-running, more efficient, less expensive and more robust than those made with other membrane materials.

PolyFuel is working with most of the world’s leading portable fuel cell system developers, the majority of whom are household brand name consumer electronics manufacturers. To-date, every company that has completed their evaluation testing of PolyFuel’s membrane has gone on to purchase PolyFuel’s membrane products. Several of the largest Japanese and Korean consumer electronics companies rank PolyFuel’s membrane as the best portable fuel cell membrane available in the world today. To date, NEC and Sanyo have disclosed they are using PolyFuel membranes.

PolyFuel was spun out of SRI International (formerly Stanford Research Institute) in 1999, after 14 years of applied membrane research. The company is based in Mountain View, California, and is publicly listed on the AIM stock exchange in London.

Editors, note: All trademarks and registered trademarks are those of their respective companies.

Additional background information is available at www.roeder-johnson.com.

This news release may contain forward-looking statements, including with respect to the development of the fuel cell market. Readers are cautioned that such forward-looking statements involve risks and uncertainties, including, without limitation, risks inherent in the development and commercialization of potential products. Actual results may differ materially from the results anticipated in these forward-looking statements.

PolyFuel securities have not been registered under the United States Securities Act of 1933, as amended (the “Securities Act”), and may not be offered or sold in the United States or to U.S. persons (within the meaning of Regulation S under the Securities Act) unless the securities are registered under the Securities Act or an exemption from the registration requirements of the Securities Act is available. Hedging transaction involving any such securities may not be conducted unless in compliance with the Securities Act.