Chemical Hydride Based PEM Fuel Cells for for Portable Power Applications Joint Services Power Expo May 2-5, 2005 Shailesh A. Shah Marketing Director, Military Millennium Cell, Inc. One Industrial Way West, Eatontown, NJ 07724 shah@millenniumcell.com 732-544-5739

Millennium Cell (MCEL) – company overview Outline Millennium Cell (MCEL) – company overview Hydrogen storage/generation via sodium borohydride Hydrogen on Demand® Technology Gravimetric Energy Density Comparison Prototype Development P1 Cartridge Test Results

Millennium Cell Company Overview We are developers of hydrogen energy systems for use primarily in portable electronics devices for consumer, military, medical, and industrial markets. 25 patents issued to date Over 40 patent applications submitted and still pending Public offering in August 2000 (Nasdaq: MCEL), currently 40 people working in Eatontown, NJ and Washington DC. 23 in technical organization; 9 Ph.D.s company wide Announced relationships: _____________________________________________ From: Roxanne Spencer Sent: Thursday, January 13, 2005 10:57 AM To: Gregory M. Smith Subject: RE: Current Patent & Application Count? Patents: 12 US, 13 non-US Applications: 18 US, 30 non-US

NaBH4 (aq) + 2 H2O  4 H2 + NaBO2 (aq) + heat Hydrogen Generation from Sodium Borohydride (SBH) Hydrogen on Demand® Reaction NaBH4 (aq) + 2 H2O  4 H2 + NaBO2 (aq) + heat cat An energy-dense water-based chemical hydride fuel Proprietary catalyst induces rapid H2 production High purity humidified H2 Borate can be recycled into NaBH4 or can be disposed of Exothermic reaction requires no heat input Hydrogen is generated in a controllable, heat-releasing reaction Fuel is an ambient pressure, room-temperature, non-flammable liquid Hydrogen generated via this process is of high purity (no carbon monoxide or sulfur) and is humidified (heat generates some water vapor) U.S. Patent 6,534,033: “System for Hydrogen Generation”

Coolant Loop (optional) Hydrogen Generation from Sodium Borohydride (NaBH4) Schematic of Hydrogen on Demand® Technology 1. Borohydride Fuel is pumped or moved from a tank through a chamber containing MCEL’s proprietary catalyst. 2. The fuel is converted into pure hydrogen, water vapor, and borate (NaBO2). Gas/Liquid Separator Fuel Pump Catalyst Reactor Fuel tank: NaBH4 solution Hydrogen + Water Vapor H2 Discharged fuel area: NaBO2 Borate (NaBO2) borate Water from Fuel Cell H2O Hydrogen + Water Vapor Coolant Loop (optional) Fuel Cell Pure Humidified H2 Heat Exchanger Oxygen from Air Electric Power 3. The temperature and humidity of the hydrogen stream are adjustable. Humidified hydrogen is sent to the fuel cell. 4. The fuel cell creates power and water. This water can be recycled within the system. Allows for higher fuel concentrations.

Gravimetric Energy Density Comparison Zn/Air, today 300 Wh/kg Li/SO2, today 170 Wh/kg Li-Ion, today 110 Wh/kg DMFC fuel only, today (15%) 900 Wh/kg fuel only, projected (25%) 1500 Wh/kg RMFC (0.7 V fuel cell, 75% conversion) fuel only (64%), projected 1440 Wh/kg HOD/PEM (0.7 V fuel cell, 95% conversion) Practical dry fuel for shipping, today 3900 Wh/kg Practical fuel only (20%) energy density today 760 Wh/kg Practical fuel only (35%) energy density projected 1330 Wh/kg

Comparison of HOD + PEM to Methanol-based Systems HOD(NaBH4)/PEM DMFC Reformed MeOH/PEM Heat Dissipation 1.5 Watts heat per Watt of net electrical output 3 to 5 Watts heat per Watt of net electrical output 1 Watt heat per Watt of net electrical output Thermal Signature HOD reaction temperature < 100 °C High due to high heat dissipation needs Reformer temperatures of > 250°C Design Characteristics Simple generator design, high efficiency over wide operating range Cross-over fluctuation affects turndown, complex concentration control and water recovery scheme Multiple Reactors and CO clean up Stack Power Density ~0.3 - 0.5 W/cc < 0.1 W/cc PEM power density limited due to CO Demonstrated Operating Life PEM > 4000 hours Low 100s of hours PEM limited by CO poisoning Capital Cost Low catalyst loadings in HOD system and simple design translate into low capital cost High due to catalyst loading Reformer cost high due to catalyst needs and CO clean-up step Fuel Safety Non-flammable in solution Flammable Address start-up time dmfc and reformed methanol loose out on start-up time

M2 Consumer Electronics Demonstrator Prototype Demonstrated at Intel Developers’ Forum, Mar 2005 ~135 Wh/L and ~130 Wh/kg fuel system Demonstration prototype – fuel volume non-optimized NBPC scale power (20 W), 3 hr runtime @ 11 W nom 33 Wh scale system, 245 cc

Protonex P1 Full System Cartridge attachment Demonstrated: > 350 Wh/L and > 350 Wh/kg complete system 30 W Net Power, >15 Hour Runtime per cartridge 465 Wh net single cartridge only  1.1 L, 1.25 kg

Energy Cartridge: Interface detail 7.9 cm 8.8 cm Fuel/borate area Electrical Interface Air Filter Catalyst Reactor 16.8 cm Hydrogen Interface Pressure Relief Valve Fill Port Fuel Pump Interface

Cartridge Testing Fuel Cell Simulator Over 250 hours of test Mimics FC interface Adjusts H2 demand Monitors cartridge metrics Over 250 hours of test

Cartridge Testing – Typical Data

Cartridge Testing – Start Up Fuel Cell Simulator Start up ~60 s Fuel Cell System Start up ~20 s

Cold Temperature Cartridge Operation Operation at 20 °C and 5 °C No change in conversion No change in fuel utilization Startup time increased to ~ 120 s

Protonex P1 Status and P2 Technology Improvements Achieved! P1 energy density goal for 72 h/30 W mission: 350 - 380 Wh/kg P2 energy density goal for 72 h/30 W mission: 425 - 500 Wh/kg Packaging efficiency Water recovery Custom components Dry SBH fuel cartridges can be mixed on-site as needed Indefinite storage life Ability to use field water to be studied Substantial energy density increase when shipping dry cartridges

Fuel Cell Portable Power Systems for Military Applications Joint Services Power Expo May 2-5, 2005 Greg Cipriano VP Marketing & Military Development Let’s get started. Introduce Protonex guys Thank you for the opportunity to tell you more about Protonex.

Protonex Facts MISSION Focus on apps where fuel cells make sense Where batteries & IC engines do not work well Design for performance, manufacturability and cost TARGET MARKET Portable and remote applications High-performance power, 10 – 500 Watts RESULT “Best-in-class” power systems vs. alternatives Leading metrics and fieldable costs Functional prototypes exist today Complete power solution including fuel packaging/cartridge

Power Range Focus Fuel cells do well here Battery Curve Protonex Fuel Cell Curve Cell Phone Fuel cells do well here PDA Cost/Watt-hr IC Engine Curve Laptop We like to start conceptually and at a high level. This graph is useful There are two main incumbents for off-grid power – batty’s and ICE generators. This chart shows the approximate cost of the power (Y axis) across a range of power levels (X axis). The blue curve is the cost of batteries and the red is the cost of ICE. The green is Protonex fuel cells. The point here is that below 10W batteries are the least expensive way to provide power and above 1000W the ICE Engines are the lowest cost. Show the examples. In the 10 to 1000W range we see fuel cells having an overall cost advantage vs.batteries and IC engines – a sweet spot where fuel cells provide unique value and a cost advantage in many app’s. Soldier Power Small Generator UPS Residential Auto 10 Watt 1000 Watt 10,000 Watt

VALUE POINTS for Protonex fuel cell based power solutions Fuel Cell Benefits Reduced weight Extended runtimes Reduced size Lower life cycle cost Greater fuel efficiency Reduced emissions Lower noise level Lower heat signature VALUE POINTS for Protonex fuel cell based power solutions

Potential Military Applications NGen™ Portable Power Family 10-100W 100-300W 300-500W Soldier Power Battery Charger Silent Watch Remote Monitoring Small APU Electronic Warfare Mobile Robots UAV Fwd Area Charger External PowerPack Shelter Power

Protonex Military Activity Army Research Office Development program for next generation sub-kW stacks, 18 months Army Research Lab Development program for advanced DMFC fuel cell stacks, 2 yrs Air Force Research Lab Dual Use Science & Technology, 18 months BAO kit power system using chemical hydride fuel Naval Research Lab Feasibility demonstrated on UAV power system, ongoing work TARDEC Prototype development for mobile robots SOCOM Silent Auxiliary Power Unit just awarded Military Primes Multiple joint development programs starting and in discussion

Protonex Stack Breakthrough 20 W ~ 1992 20 W ~ 2003

Protonex Stacks = Best-in-Class H2 PEM technology Compact Lightweight Low Cost Robust Reliable Injection Moldable Patents Pending Protonex started with Stacks which are the power plants of fuel cells Actual products from 10 to 500W No tradeoffs – we get low cost, lightweight AND high performance, reliability. Punch injection molding Drive patents pending 3000 Series Family 50-200 Watts Protonex Stacks are Highly Durable

Stack Life Test 4000 hrs Man portable target system lifetime = 2000 hrs operation, Phase I Degradation corresponds to loss of ~1.5% efficiency at 2000 hours

NGen™ Systems Fuel Cell Power Systems Protonex Systems are Fuel Cell Stack Balance of Plant Air, Cooling, Controls Fuel System (HW and fuel) Chemical Hydrides Methanol Reformers H2 or Metal Hydrides Protonex Systems are Small & lightweight Efficient & durable Manufacturable Easy to embed in app’s 30 Watt System Prototype Stack superiority and simplicity enable the use of available balance of plant components. Strong systems knowledge and capabilities allow selection, integration and commercialization of best-in-class fuel technologies to deliver complete power systems to applications.

System Examples: 30-500W

Systems tested -10 to 50°C and 1000 hrs to date System Testing Systems tested -10 to 50°C and 1000 hrs to date

Industry First 30W System FIRST integrated chemical hydride fuel cell system TODAY: 350-380 Whr/kg and TRL5 Q4 2005: 425-500 Whr/kg and TRL6-7 72 hour mission @ 30Watts continuous

Protonex Value Proposition NEED: 30 watts continuous for 72hr mission BA5590 Batteries (today) Units required: 13 Total weight: 29.3 lbs Total volume: 11.2 liters Cost/mission: $1,040 Protonex Fuel Cell System Systems required: 1 Cartridges required: 6 Total weight: 7.9 lbs Total volume: 4.3 liters Cost/mission: $433 Savings: 60% on cost 62% on size 73% on weight Impact: Significantly Decreased Logistics Burden

Life Cycle Cost Details Lower life cycle cost vs. batteries Practical capital costs <$1500 @ 5K units Low cost COTS and FC components Design for manufacture focus Highly durable, low maintenance Tested 4,000 hrs (10,000 hrs possible) Low cost fuel cartridges Chemical hydride is safe, non-flammable Recycle cartridges for training Discard cartridges for battle

Strategic Partners Parker Hannifin – volume mfg of Protonex systems and key components (60 mfg. plants worldwide) Millennium Cell – co-develop fuel cartridge w/Protonex Dow – volume mfg of Protonex fuel cartridges

Recent Milestones System prototypes built from 10 to 500W Over 600 stacks built Life testing over 4,000 hours Demonstrated integrated fueling system Multiple joint development projects Several high profile military program awards Military evaluations in progress New 12,000 sq.ft. facility 9 patents pending

Summary - Our Strengths “Best in Class” fuel cell power systems for OEM’s Leading product metrics Low system cost points enabling adoption Strong customer focus Product oriented, not just R&D NGen™ patent pending technology Comprehensive suite of strategic partners Strong military activity & support Strong private venture funding (matching $) History of delivering to commitments

Contact Information Greg Cipriano VP Marketing & Military Development greg.cipriano@protonex.com 508.490.9960 x208 Protonex Technology Corporation 153 Northboro Road Southborough, MA 01772 www.protonex.com