SEATTLE - Neah Power Systems (OTCBB:NPWZ - News) Issues the following Letter to Shareholders:
July 16 2010
Recent highlights
Our team at Neah Power Systems has made significant progress in business development as well as in the advancement of our technology. In 2009, we announced the completion of the second Office of Naval Research (US Navy) grant, the development of a manufacturing supply chain strategy, and the planned adoption of our technology by EKO Vehicles and Hobie Cat. We also completed a major milestone when our fuel cell exceeded 2,000 hours of continuous operation. More recently, we have introduced our Infinity eL series of fuel cells and completed the acquisition of SolCool LLC.
What can we expect in the coming year?
We will continue to improve and enhance our fuel cell product, direct current air conditioning, and remote area power supply (RAPS) products. We continue to dialog with potential customers and supply chain partners. We expect to focus resources on building up the sales and business development function in the company with the expectation of providing the most cost effective, value-added products to our customers.
What is the status of SolCool, the air-conditioning company?
We completed the acquisition of SolCool in January 2010. We continue to be excited about the opportunities with this product line. As the company is appropriately capitalized, we expect to ship products and drive further adoption. Neah is currently taking orders for the air conditioning systems ranging in size from 5000 BTU to 18,000 BTU.
What is the status of the Amex listing and are you looking at other exchanges?
We are currently focused on the goal of meeting the requirements for listing with the Amex. We will continue to evaluate other exchange listing options as well.
How revolutionary are the Neah fuel cell developments?
The Neah Power fuel cell is a compelling, patent–protected, and differentiated product. Previous investors in the company include Intel Capital, Novellus Systems, Frazier Technology Ventures, Castile Ventures, etc. In addition, we have won multiple awards, including MIT Magazine of Innovation, Red Herring, Venture All Stars, NIST/ATP, for our ground-breaking technology.
What is the status of the discussions with the lenders to the company?
We continue to negotiate open issues with our lenders. We have made stock payments towards some debt, as was reporting in our most recent Form 10-Q filing with the Securities and Exchange Commission. We thank them for their continued support and long term involvement.
How is the Neah product different from other fuel cells?
Most current fuel cells are based on a decades old technology called a “Proton Exchange Membrane” or “PEM.” Although performance of PEM based fuel cells has improved since their introduction in the 1960s, they are expensive and continue to have significant technical and commercial limitations. PEMs require access to air to produce needed chemical reactions. Environmental factors, including water and pollution, can reduce their effectiveness, reliability and duration of the power supply. Neah Power has developed an innovative porous silicon technology that eliminates the primary drawbacks to PEM based fuel cells. This design allows our fuel cell to operate in non-air (“anaerobic”) environments and can be used naval, aerospace and military applications. The silicon based fuel sell can produce more power for its size and can be manufactured using existing semiconductor production facilities. This makes the Neah Power fuel cell a cost effective solution.
What do these unique anaerobic capabilities offer for transportation applications?
With its unique ability to operate in anaerobic environments, our fuel cell can be an attractive solution for transportation vehicle applications currently requiring conventional battery power, such as electric forklifts, cars, and scooters. Our fuel cell effectively offers a hybrid solution where power supply from batteries can be continually recharged.
We continue to be excited about opportunities we see for the Neah Power product lines and, again, thank you for your support.
Sincerely,
Dr. Chris D’Couto
Chief Executive Officer & President
About NEAH Power
NEAH Power Systems, Inc. (NPWZ) is developing long-lasting, efficient and safe power solutions for the military and for portable electronic devices. NEAH uses a unique, patented, silicon-based design for its micro fuel cells that enable higher power densities, lower cost and compact form-factors. The company's micro fuel cell system can run in aerobic and anaerobic modes.
Further company information can be found at www.neahpower.com.
Forward-Looking Statements
Certain of the statements contained herein may be, within the meaning of the federal securities laws, "forward-looking statements," which are subject to risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. See Neah Power System's Form 10-KSB for the fiscal year ended September 30, 2008 for a discussion of such risks, uncertainties and other factors. These forward-looking statements are based on management's expectations as of the date hereof, and the company does not undertake any responsibility to update any of these statements in the future.
Contact:
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Mike Elliott
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