I'm almost afraid to post this...
Other Portable Electronics:
Manhattan Scientifics, Inc. Commits $1 Million Funding
LOS ALAMOS, N.M., Jan. 21 /PRNewswire/ -- Manhattan Scientifics, Inc.
(OTC Bulletin Board: MHTX) is providing financial backing for Los Alamos
scientist and entrepreneur Robert Hockaday who believes that cellular phone
batteries will soon be a thing of the past. In fact, Hockaday thinks it won't
be long before batteries for many small, portable electronics, such as lap-top
computers will be a thing of the past. That's because Hockaday has developed
a new power source with the potential to obsolete conventional batteries: a
miniature fuel cell that is environmentally safe and will allow cellular
phones to remain powered up on stand-by for over 40 days instead of 1 day with
a talk time of 100 hours compared to 2 hours for conventional batteries.
Instead of recharging, a tiny squirt of methanol restores power instantly.
In a ceremony today in Los Alamos attended by U.S. Sen. Jeff Bingaman,
D-N.M., Hockaday's company, Energy Related Devices Inc., received $500,000 of
the $1 million in research development funding that Manhattan Scientifics,
Inc. committed to complete the miniature fuel cell technology that Hockaday
began developing in his basement 10 years ago. A former Los Alamos National
Laboratory physicist, Hockaday began experimenting with ways to miniaturize
conventional fuel cells, a normally bulky device that produces electricity by
combining hydrogen and oxygen electrochemically.
Hockaday came up with the idea of micro-engineering fuel cells and
employing the same type of miniaturization and materials technology that
transformed computers from huge boxes to silicon chips. He is designing a
method in which the fuel cells can be manufactured inexpensively using a
printing process similar to the manufacture of computer chips. Convinced that
his patented technology could have a major impact on the multi-billion dollar
U.S. cellular phone market, Hockaday created his own company, Energy Related
Devices, dubbed his invention the Micro-Fuel Cell and took entrepreneurial
leave-of-absence from Los Alamos in 1994 to work on the technology full-time.
Leaving his job as a diagnostic physicist was a difficult decision, but
essential to his success.
"To go out and risk your family's income and your whole identity as a
working scientist is really tough, but I want others to know it can be done,"
Hockaday remarked, adding, "Now, with the backing of Manhattan Scientifics my
plan is that I will be able to deliver a working prototype of the Micro-Fuel
Cell by year-end and gear up for commercial production in '99."
While Hockaday's basement workshop is packed with scavenged and cleverly
engineered homemade equipment, he estimates it cost him about $25,000 per year
to bring his invention to its present state. A Cooperative Research and
Development Agreement (CRADA) provided technical assistance from Los Alamos
National Laboratory to improve performance of the fuel cells, but capital to
advance the invention to final prototype stage and commercialization loomed as
a major obstacle. Then, in August of 1997, the Laboratory's Civilian and
Industrial Technologies Program office introduced Hockaday to Marvin Maslow,
president of Manhattan Scientifics, Inc.
"I didn't understand all the details of the fuel cell technology, but Bob
really impressed me with his determination and entrepreneurial spirit. And
that's what I invest in, people," Maslow said. "People are what makes
technology happen."
By the beginning of 1998 Maslow's Manhattan Scientifics raised
$1.0 million of new capital and committed to fund Hockaday's fuel cell
invention to build finished, pre-manufacturable prototypes. Today's Los
Alamos ceremony marks the formal acceptance of the first of Manhattan
Scientifics' delivery of the first $500,000 to Energy Related Devices, as well
as a substantial equity interest of Manhattan Scientifics' equity to Hockaday,
in exchange for the intellectual property relating to the micro fuel cell
technology.
Commenting on the almost unprecedented speed in which the financing took
place, Maslow remarked, "The entire process from start to finish took a little
more than four months. Conventional financing for technology start-ups
typically takes three or four years before the company is taken public. I
practice a financing approach that I call 'guerrilla financing' to bring
capital to a project quickly so the momentum of research is not impeded by
tedious analysis and negotiations." Maslow added that Manhattan Scientifics,
Inc. plans other partnerships based on the technology and talent of Los Alamos
National Laboratory.
The plan now is to move Hockaday out of his basement into a larger
laboratory where he will develop the Micro-Fuel Cell from working principle to
prototype stage. Manhattan Scientifics will contract with Energy Related
Devices to provide development capital and marketing resources. Maslow then
plans to work with Hockaday to develop strategic alliances with Fortune/l00
companies that have the clout to bring the product to market quickly. It is
the goal of both Maslow and Hockaday that the Micro-Fuel Cell components be
manufactured in Northern New Mexico. Executive offices of Manhattan
Scientifics, Inc. will be located in New York City adjacent to those of its
majority shareholder Projectavision, Inc. (Nasdaq: PJTV). However, the
laboratory and engineering facilities of Manhattan Scientifics, Inc. will
remain in Los Alamos.
Hockaday echoed Maslow's concern for creating jobs from technology and
brain power in the national laboratories. "The most valuable thing the
Laboratory has are the people, the brains, the training in experimental
science, but it's a very safe and comfortable environment. People have to
leave the Laboratory to translate their ideas into products that people will
buy and to create industry here in Northern New Mexico," he emphasized.
The foregoing press release contains forward-looking statements, including
statements regarding, among other things, completing the research and
development of a marketable product, commercializing such product, and
expectations of Manhattan Scientifics, Inc.'s future business. These forward-
looking statements are based largely on the Company's expectations and are
subject to a number of risks and uncertainties, some of which are beyond the
Company's control. Actual results could differ materially from these forward-
looking statements as a result of a variety of factors including, among
others, identifying and commercializing as yet unidentified technologies,
completing the research necessary for Energy Related Devices Inc., to
commercialize Micro-Fuel Call technology on a timely basis, sufficient capital
to complete the research and development, and intense competition in the
portable electronic energy source industry. In light of these risks and
uncertainties there can be no assurance that the forward-looking statements
contained in this press release will in fact transpire or prove to be
accurate.
SOURCE Manhattan Scientifics, Inc.
-0- 01/21/98
/CONTACT: Marvin Maslow, CEO of Manhattan Scientifics, 212-971-3000, or
505-989-4080; or Media Contact - George Sopko, or Alex Stanton, both of
Stanton-Crenshaw, 212-780-1900, or george@stanton-crenshaw.com, for Manhttan
Scientifics; Institutional Investor Relations - Frank Hawkins of Hawk
Associates, 305-852-2383, or Fhawk@hawkassociates.com, for Manhattan
Scientifics; or Technical Contact - Robert Hockaday of Energy Related Devices,
505-662-4807, or Robert9610@aol.com; or Jim Danneskiold of Los Alamos National
Lab, 505-667-1640, or slinger@lanl.gov/
/Web site: manhattsci com/
(MHTX PJTV)
CO: Manhattan Scientifics, Inc.; Energy Related Devices Inc.; Los Alamos
National Laboratroy; Projectavision, Inc.
ST: New York, New Mexico
IN:
SU: PDT |
