METALLIC-POWER DEMONSTRATES ZINC/AIR FUEL CELL.

Metallic Power Inc., San Diego, Calif., a developer of rapidly refuelable zinc/air fuel cells, has completed its successful first phase demonstration of a prototype zinc/air fuel cell system using a Cushman brand utility cart manufactured by the Textron Company.

The zinc/air fuel cell powered cart achieved the same ground speed as a lead-acid battery-operated cart; refueled in about ten minutes compared to lead-acid batteries' eight hours; and was able to cover 25 percent more distance than when powered with lead-acid batteries.

"The success of this demonstration means we have met a significant investor milestone and we are on-target for our 2002 product launch," said Dr. Jeff Colborn, CEO of Metallic Power. "Industry leaders such as Toro, Textron, and ABB have established relationships with Metallic Power for prototype fuel cell development and demonstration. This demonstration marks the first step in making clean power a reality for these industries."

Engineers at Metallic Power replaced the six lead-acid batteries originally installed in the utility cart with a single fuel cell. The cart was driven on a surface with level changes and speed bumps where its performance data was compared to that collected earlier from the lead-acid battery-operated cart. Multiple drive and refuel tests were performed over a several-day period at Metallic Power's facilities in Carlsbad, Calif.

Using a prototype recycling unit, the zinc/air fuel cell was both emptied of its reaction product - zinc oxide - and refueled with fresh zinc "fuel" in about ten minutes. Product improvements next year should cut the refuel time to only three to five minutes. The production version of the recycling unit will incorporate a single, easy-to-handle coaxial nozzle/hose configuration similar to today's gasoline refueling nozzles.

"We are pleased to demonstrate to the world the feasibility and capability of the zinc/air fuel cell system," said Colborn. "The decrease in refuel time means users can gain up to 200 percent more utilization out of their electric equipment depending on their recharge and cool-down cycles. This is especially good news for high-use, multi-shift operations for whom downtime means lower profits."

The Metallic Power development team continues to optimize the design of the zinc/air fuel cell system and refine its marketing strategy. The next major phase is a test of approximately 50 customer evaluation units in the fall of 2000, with beta units to follow in late 2001. Metallic Power anticipates introduction of the fuel cell for commercial use in 2002.

The zinc/air fuel cell provides power by combining zinc pellets of 1 mm diameter with oxygen from the air in the presence of an electrolyte. This reaction produces electricity and a by-product, zinc oxide, a safe material commonly found in skin creams and sunblock. In the recycling unit, the chemistry is reversed. Using electricity from the wall, the recycling unit converts the zinc oxide back into fresh zinc to be reused again as fresh `fuel.' Oxygen is released back into the air - the same oxygen used earlier by the fuel cell. It is an entirely closed-loop system - with nothing to add, nothing to discard and nothing wasted, allowing the zinc and electrolyte to be used over and over. The fuel cell is quiet, emission-free, environmentally safe and completely recyclable.

Compared to lead-acid, the zinc fuel cell has up to seven times the energy per pound and up to three times the energy per volume. Lead-acid batteries have a typical life of two years under heavy use, requiring frequent replacement, whereas the Metallic Power zinc/air fuel cell is capable of lasting five to ten years under normal conditions.

Metallic Power has patents pending or in preparation for new air cathodes, electrolyte management, sealed replaceable refueling cartridges, regeneration equipment design and zinc fueling technology. The company is currently in its second round of venture capital funding.

Metallic Power Inc., founded in 1995 and based in Carlsbad, Calif., near San Diego, is the leader in developing rapidly refuelable electric power sources that reuse zinc -- the new economical clean fuel for electric vehicles and power systems.

For more information, call 858/450-0030 ext. 121.