Millennium Cell Updates Stakeholders


EATONTOWN, N.J., May 1, 2008 (PRIME NEWSWIRE) -- Millennium Cell Inc. (Nasdaq:MCEL), a leading developer of hydrogen battery technology, announced today that it has not yet raised cash that is necessary to continue its business operations. As previously reported by the Company in its Form 10-K for the year ended December 31, 2007 and during its fourth quarter earnings call, the Company had sufficient cash resources to fund operations into April but not beyond. As a result, the Company has furloughed all employees at this time.

The Board of Directors and senior management are in discussions with third parties that have expressed interest in entering into a potential transaction with the Company, which would provide short term liquidity pending completion and would create value for the Company and its stakeholders for the future. The Company cannot provide any assurances that it will be able to complete any of these potential transactions or, if such a transaction were not completed on reasonable terms, avoid a Bankruptcy proceeding.

Lastly, the Company's request for a hearing to reconsider the de-listing of its common stock on NASDAQ has been granted, and the hearing is scheduled for June 12, 2008. Accordingly, the Company's securities will continue to trade on NASDAQ at least until that time. The Company's ability to present an acceptable plan of compliance to the NASDAQ depends upon its ability to complete one of the potential transactions it is pursuing and NASDAQ's acceptance of its compliance plan.

About Millennium Cell

Millennium Cell is a leader in the development of hydrogen battery technology used to power portable applications. Through its proprietary Hydrogen on Demand(r) fuel cartridges and PowerSkin(tm) fuel cell modules, the Company provides increased energy density resulting in longer runtime and lighter weight in a compact space. The Company is working with market partners to meet the demand for a better battery in the military, medical, industrial and consumer electronics markets. For more information, visit www.millenniumcell.com.

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 and are subject to risks. 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, many of which are outside of our control, 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) Millennium Cell's ability to satisfy our immediate need for capital, in the amounts and at costs and upon terms that are acceptable to fund the development and commercialization of our hydrogen battery technology and hydrogen delivery system and Millennium Cell's business plan, (v) Millennium Cell's ability to protect our intellectual property; (vi) Millennium Cell's ability to achieve budgeted revenue and expense amounts, (vii) Millennium Cell's ability to generate revenues from the sale or license of, or provision of services related to, our technology, (viii) Millennium Cell's ability to enter into agreements with collaborators and strategic partners and the potential failure of our collaborators and strategic partners to perform under their agreements with us, (ix) Millennium Cell's ability to generate design, engineering or management services revenue opportunities in the hydrogen generation or fuel cell markets; (x) Millennium Cell's ability to secure government funding of its research and development and technology demonstration projects; and (xi) other factors discussed under the caption "Risk Factors" in Millennium Cell's Annual Report on Form 10-K for the year ended December 31, 2007.



            

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