NEWS release that explains Manhattan scientifics future on fuel cells
Los Alamos, NM, January 21, 1998 - Manhattan Scientifics, Inc. (OTC BB: 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/100 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
Cell technology on a timely basis, sufficient capital to complete e 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.
###Micro-Fuel Cells###
Manhattan Scientifics, Inc. 2 Penn Plaza, Suite 640 - New York, NY 10121
Tel: (212)971-3000 Fax: (212)971-6016 - manhattsci.com |
