Millennium Cell Launches Funded Hydrogen Research Project with U.S. Department of Energy; $1.0 Million Anticipated in 2004 Within a $3.5 Million Three-Year Contract.

Business Editors

EATONTOWN, N.J.--(BUSINESS WIRE)--Feb. 19, 2004

Millennium Cell Inc. (NASDAQ: MCEL), a leading technology development company that has created a proprietary process to safely store, generate and deliver pure hydrogen, has signed an agreement with the U.S. Department of Energy (DOE) for the funding of research in hydrogen technology. Announced in June 2003, funding in calendar year 2004 is anticipated at $1.0 million, with total potential funding of $3.5 million through 2006. The company has additional government funding proposals pending and in preparation with DOE and the U.S. Department of Defense.

When announcing the grant in June 2003, the DOE notification letter with reviewers' comments called Millennium Cell a leader in sodium borohydride technologies, and also said, "Borohydride is a potentially attractive chemical hydrogen storage option due to capacity, ease of delivery and safety." Delays in authorizing the Federal budget resulted in postponement in beginning the funded contract.

"We are eagerly anticipating this important work on the regeneration of sodium borohydride," said Dr. Stephen S. Tang, Millennium Cell President and CEO. "Our expectation is that it will confirm our earlier studies that there is a more viable, efficient, and less costly process than the current commercial manufacturing technology to make sodium borohydride. This will have a positive effect on the development of our system for the near term markets in consumer electronics, standby power and military portable power on which Millennium Cell is focused."

Scientists from Air Products & Chemicals Inc., the largest global supplier of hydrogen and a leading industrial gas and performance chemical company, will participate in this cost share project which addresses the DOE focus of onboard hydrogen storage and compact, low-cost storage systems for transportation.

About Millennium Cell

Founded in 1998, Millennium Cell is based in Eatontown, NJ and has developed a multi-faceted patent portfolio, which the company is pursuing in the United States and internationally surrounding a proprietary process called Hydrogen on Demand(TM). The Hydrogen on Demand(TM) system safely generates pure hydrogen from environmentally friendly raw materials. In the process, the energy potential of hydrogen is carried in the chemical bonds of sodium borohydride, which in the presence of a catalyst releases hydrogen. The primary input components of the reaction are water and sodium borohydride, a derivative of borax. Borax is found in substantial natural reserves globally. Hydrogen from this system can be used to power fuel cells or fed directly to internal combustion engines. Millennium Cell also has a patented design for boron-based longer-life batteries. For more information, visit www.millenniumcell.com or call 866-532-2783.

Cautionary Note Regarding Forward-looking Statements:

This press release may include statements that are not historical facts and are considered ``forward-looking'' within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect Millennium Cell's current views about future events and financial performance. These forward-looking statements are identified by their use of terms and phrases such as ``believe,'' ``expect,'' ``plan,'' ``anticipate'', "on target" and similar expressions identifying forward-looking statements. Investors should not rely on forward-looking statements because they are subject to a variety of risks, uncertainties and other factors that could cause actual results to differ materially from Millennium Cell's expectations, and Millennium Cell expressly does not undertake any duty to update forward-looking statements. These factors include, but are not limited to, the following: (i) the cost and timing of development and market acceptance of Millennium Cell's hydrogen fuel storage and delivery system, (ii) the cost and commercial availability of the quantities of raw materials required by the hydrogen fuel storage and delivery systems, (iii) competition from current, improving and alternative power technologies, (iv) our ability to raise capital at the times, in the amounts and at the costs and terms that are acceptable to fund the development and commercialization of our hydrogen fuel storage and delivery system, (v) our ability to protect our intellectual property, (vi) our ability to achieve budgeted revenue and expense amounts and (vii) other factors detailed from time to time in Millennium Cell's filings with the Securities and Exchange Commission.