AlumiFuel Power, Inc. Signs Memorandum of Understanding with Major Aerospace Company.

CENTENNIAL, Colo. -- Early production stage hydrogen generation company AlumiFuel Power, Inc. ("API"), the Philadelphia, Pennsylvania-based wholly owned operating subsidiary of AlumiFuel Power Corporation (OTCBB: AFPW), (the "Company"), announced today that it has completed two fuel technology evaluation contracts for a major subsidiary of the world's second largest aerospace & defense company relating to power generation concepts for national security applications. As a result of therse successful contracts, API and this company have signed a Memorandum of Understanding (MOU) for further cooperation on fuel technology for use in future power plant systems.

The two companies, as outlined in the MOU, will continue to evaluate the use of API's unique AlumiFuel powder technology to meet the power requirements of certain "mission critical" applications. These applications include Unmanned Underwater Vehicles (UUVs), manned submersibles, torpedo propulsion systems, and marine/land-based Auxiliary Power Units (APUs). The scope of the MOU includes development of operational concepts and power delivery systems, capturing funding for further technology development, and manufacturing and distribution of operational systems that may result from the joint efforts.

Mr. David Cade, API's CEO, said, "The signing of this MOU with a subsidiary of a Fortune 50 and Dow 30 company is very important for API. Based on the successful results of the two evaluation contracts to help evaluate the potential of API's AlumiFuel technology, this company believes that our technology may well be suited for dynamic power conversion systems that would meet the needs of many UUV and other Navy submersibles' missions. This company has the capabilities required to incorporate API's steam/heat source technology into a viable power system for underwater applications, and market that system for naval consumption."

About AlumiFuel Power, Inc. (API)

API (www.alumifuelpowerinc.com) is an early production stage alternative energy company that generates hydrogen gas and superheated steam for multiple niche applications requiring on-site, on-demand fuel sources, serving National Security and commercial customers. API's hydrogen drives fuel cells for portable and back-up power, fills inflatable devices such as weather balloons, and can replace costly, hard-to-handle and high pressure K-Cylinders. Its hydrogen/steam output is also being designed and developed to drive turbine-based underwater propulsion systems and auxiliary power systems. API has significant differentiators in performance, adaptability, safety and cost-effectiveness in its target market applications, with no external power required and no toxic chemicals or by-products. For more news and information on API, please visit www.irgnews.com/coi/AFPW.

About AlumiFuel Power Corporation

AlumiFuel Power Corporation recently acquired its wholly-owned operating subsidiary AlumiFuel Power, Inc., a Philadelphia-based early production stage alternative energy company that generates hydrogen gas and steam for multiple niche applications requiring on-site, on-demand fuel sources. The Company also has been conducting biotechnology research, development and potential commercialization of technologies and products for new cancer therapeutic agents and cancer fighting drugs called targeted therapies.

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