January 22, 2008

PROTONEX AWARDED CONTRACT BY US ARMY TO DELIVER A

PORTABLE POWER MANAGER SYSTEM

DATELINE: SOUTHBOROUGH, MA; Protonex Technology Corporation (LSE: AIM: PTX and PTXU), a leading provider of advanced fuel cell power systems for portable, remote and mobile applications, today announces that it will develop a tailored, soldier-borne power manager for the US Army, which will dramatically reduce the soldiers' logistics burden supply - a critical step in minimizing the numbers and different types of power sources a soldier must carry. This work will be completed under an awarded $389,325 contract with the US Army Research Office (ARO) and will draw on continuing developments by Protonex of its power and battery management technologies.

Under the terms of this 10-month contract, Protonex will rapidly evolve its current man-portable power manager system making it smaller, lighter and easier to configure for a variety of different loads. The resulting Protonex high-performance power manager is expected to address the burdensome inefficiencies of existing battery and power management technologies by matching virtually any load with any available power source (e.g. batteries, fuel cells, solar) - enabling the military to more efficiently use their available energy sources for a wide range of applications.

The new system design will combine advances in ultra-high efficiency power conversion, power management and battery charging technology into one product solution. Capabilities of the enhanced power manager system will include: soldier battery monitoring, management and charging, power delivery to soldier systems, as well as advanced power harvesting and scavenging from available energy sources.

"Working with the US Army on this program, we will speed the refinement of our advanced portable power manager product, making it a more universal, invaluable power solution for soldiers," stated Greg Cipriano, VP, Marketing and Military Development for Protonex Technology Corporation. "This new contract represents valued follow-on support by ARO, which will enable us to provide critical tools for various military applications. We also expect to leverage this advanced technology into other core products for both military and commercial customers."

ENDS -

Enquiries

Protonex Technology Corporation Tel: +1 508 490 9960

Scott Pearson, Chief Executive Officer Margaret Dorsheimer, Director of Marketing

Redleaf Communications Limited Tel: +44 (0)20 7822 0200

Press and Investor Relations Samantha Robbins Paul Dulieu

Canaccord Adams Limited Tel: +44 (0)20 7050 6500

Nominated Adviser Robert Finlay Erin Needra

Notes to Editors

About Protonex Technology Corporation

www.protonex.com

Protonex Technology Corporation develops and manufactures compact, lightweight and high- performance fuel cell systems for portable power applications in the ten to 1000-watt range. The Company's fuel cell systems are designed to meet the needs of military and original equipment manufacturer (OEM) customers for off-grid applications underserved by existing technologies by providing customizable, stand-alone portable power solutions and systems that may be hybridized with existing power technologies. The Company is based in Southborough, Massachusetts.

• PRODUCTS-PROTONEX IS DEVELOPING THREE LINES OF FUEL CELL POWER PRODUCTS TO address its three core customer groups: OEM customers, commercial end users and military end users. These products are all built upon a fundamental product architecture that utilizes patented, scalable manufacturing technology to enable low-cost production of reliable, extended-run fuel cell power systems. While products may differ in power output, fuel type and balance of plant configurations, all share technical content and development pathways and as a result, Protonex is able to leverage vendor and/or component technologies across platforms.
• PROCORETM TECHNOLOGY-PROTONEX HAS DEVELOPED A CORE FUEL CELL ARCHITECTURE, called ProCoreTM that serves as the basis for all of its product platforms. ProCoreTM is based on patented, scalable manufacturing technology that enables low-cost production of reliable, extended-run fuel cell power systems.
• PROTONEX HAS AN EXPANDING INTELLECTUAL PROPERTY PORTFOLIO THAT INCLUDES PROTON Exchange Membrane (PEM), Solid Oxide Fuel Cell (SOFC) and fuel reformer technology.

  * PEM technology: the most developed technology used for many applications,

  including portable, small stationary and transportation systems, due to its

  low temperature operation (around 80oC, or 176oF), quick start-up times and

  longer duration operation. Requires only hydrogen fuel and oxygen from the

  air to operate. Protonex' patented design and manufacturing processes

  provide many advantages compared to competing fuel cell solutions.

  * SOFC technology: less mature than PEM technology, but offers advantages such

  as fuel diversity, high efficiency and very compact size and weight.

  Protonex SOFC systems are based on a tubular architecture and use a hard,

  non-porous ceramic compound as the electrolyte, so cells do not have to be

  constructed in the stacked plate configuration typically seen with other

  fuel cell technologies. In addition, SOFC systems operate at high

  temperatures (around 800oC, 1,470oF), which reduces costs by eliminating the

  need for a precious metal catalyst and allowing SOFC systems to reform fuels

  internally.

• FUELS - PROTONEX UTILISES MULTIPLE INPUT FUELS TO CREATE POWER FROM ITS PEM and SOFC fuel cell systems. These two complementary technology platforms allow Protonex to offer power systems that operate on hydrogen, chemical hydrides, methanol, propane, gasoline, diesel, ethanol and other biofuels. Because fuel cells process fuels electrochemically rather than burning them, running fuel cell systems on carbon-based fuels still retains the environmental benefits associated with fuel cells and other alternative power sources.

  This announcement includes statements which are, or may be deemed to be, "forward-looking statements". All statements other than statements of historical facts included in this announcement, including, without limitation, those regarding Protonex' financial position, business strategy, plans and objectives of management for future operations (including development plans and objectives relating to Protonex' products and services) are forward-looking statements. By their nature, such forward-looking statements involve known and unknown risks, uncertainties and other important factors that could cause the actual results, performance or achievements of Protonex to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements. These factors include but are not limited to those described in the Admission Document issued in connection with the Company's admission to AIM.

  Forward-looking statements may and often do differ materially from actual results. Any forward-looking statements in this announcement speak only as at the date of this announcement and are subject to risks relating to future events and other risks, uncertainties and assumptions relation to Protonex' operations, results of operations, growth strategy and liquidity.

   

  END

• US Army Contract - 28/02/2007

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