Astris Energi Wins Research Grant.

Business Editors/Energy Writers

MISSISSAUGA, Ontario--(BUSINESS WIRE)--May 9, 2002

Astris Energi Inc. (OTC BB:ASRNF), pioneering developers and marketers of alkaline fuel cells, Thursday announced that its European subsidiary, ASTRIS s.r.o. based in Benesov, the Czech Republic, has been awarded a 5 million Kc (Czech crown) grant from the government of the Czech Republic.

Award of this grant will fund a cooperative effort launched last November between ASTRIS s.r.o. and the renowned Academy of Science in the Czech Republic to enhance the advantages already evident in alkaline fuel cell technology. Astris also will contribute to the program.

The ASTRIS s.r.o. project especially targets development of a portable alkaline fuel cell with 2.4 kW power rating. According to Jiri K. Nor, president of Astris Energi, it was selected in a public competition for R&D funding under the "PROGRESS" program of the Ministry of Industry and Trade.

In the 18-month project, the government contribution will be 2.925 million Kc in the calendar year 2002, with the remainder of the 5 million funded in calendar 2003. Together with the contribution of Astris Energi, the total equals $310,000 (US).

However, Nor points out, because of the substantially lower operating costs there, the actual R&D work provided for will be more like that of a $1.5 million program in the United States.

"We are very pleased that our project won in this tough competition," said Radek Kotoucek, manager of the Astris facility in the Czech Republic. "It is nice to see that the Ministry recognized the importance of our technology for both industry and the environment," he added.

ASTRIS will work closely with the Academy's Institute of Macromolecular Chemistry which is recognized worldwide for its work in polymers and related areas, Nor said. The Institute was founded by Dr. Otto Wichterle, one of whose inventions, soft contact lenses, is now used universally.

The focus of the new development will be the third generation Astris alkaline fuel cell stack MC250 which will become a key building block in fuel cell systems up to 10kW size, Nor said. Companies in six different nations already have shown avid interest in such systems.

Note: Any statements contained in this release that are not statements of fact may be considered "forward-looking statements" as that term is defined under U.S. Federal security laws. Forward-looking statements are only predictions and may differ materially from actual events or results.