BOTHELL, Wash., March 4, 2010 (GLOBE NEWSWIRE) -- Neah Power Systems (OTCBB:NPWZ) CEO Chris D'Couto issued the following letter to shareholders today.
Dear Shareholder:
As you may know, I am about to depart for Bangkok, Thailand, to present our unique fuel cell-based products and services to Government and Business Leaders from around the world, especially in Asia, at "Save Our Planet 1", on March 12, the first in a series of conferences being organized by ABBC, the ASEAN Affairs Business Council. I will also be announcing an aggressive new India, China and ASEAN expansion strategy that we believe could generate revenues as soon as Q3 2010. This region's energy consumption, as well as its need for portable energy, is rising sharply and we believe Neah Power's updated business plan positions the company for great growth and opportunity within the ASEAN Bloc.
Neah Power offers unique solutions for ASEAN's energy needs, from motor vehicles to power stations and portable fuel cells and chargers. We announced recently that our fuel cell passed 2,000 hours of run time. A "Power Gap" exists in Asia, defined as the difference in power generation and power storage vs. power needs, which affects every facet of life dependent on portable power, a critical shortfall in the event of natural disasters where the lack of power can range from being inconvenient to becoming life threatening, and the Power Gap becomes more pronounced by the under-utilization of our planet's renewable energy sources. Neah Power Systems has proprietary porous silicon (Si)-electrode-based fuel cells that can provide renewable power generation for consumers, industrial and military applications, as well as storage opportunities for renewable energy.
In Thailand, Neah Power is creating a sales, administration and manufacturing base responsible for executing Solar Plant engineering and construction contracts in addition to continuing evaluation, research and development on the Hybrid Automotive Engine incorporating Neah's proprietary fuel cell technology. We believe our Thailand expansion effort, led by Neah Board member Professor Somyos Durongkadej could also generate revenue in the next two to three quarters from contract construction, Eco-Start distribution and technology licensing. Neah Power Remote Area Power Supplies (RAPS) would be available to manufacturers and wholesalers countrywide.
Following our formal presentation at "Save Our Planet 1", company representatives will showcase our business model and technology to banks, governments and industry, including delegates from The Nobel Foundation, Asian Development Bank, Bayer, Emerson, McKinnon & Clarke, and the German and Thai Governments,
In China, Neah Power operations would begin in the power plant sector, encompassing small remote units up to large-scale power plants. China has demonstrated an enormous appetite for sustainable energy and has embraced solar and other renewable energy deployments, and we believe will be our primary 2010 revenue driver. Neah's subsidiary, Solcool One, LLC, is a direct current (DC) air conditioning systems provider, which can run with solar, wind, battery or electrical grid power. Solcool has an established manufacturing partner in China, along with a recognized distribution and support network, with a backlog of orders.
Hybrid technology and fuel cells for vehicle manufacturers show great promise for Neah Power in China and we will be expanding and marketing to capitalize on these opportunities. We will also deepen our OEM relationships with electronic goods manufacturers for consumer and industrial applications. Under the China-ASEAN Free Trade Agreement we will be able to ship easily to China from Thailand without taxes or duty.
In India, Fuel Cells for EKO Vehicles and the Remote Power stations will drive our revenue efforts, expanding on our existing agreements with Indian manufacturers and OEMs with revenue projections occurring over the next 2 quarters. We believe that this partnership will enable us to deploy clean, green transportation in India, and other Southeast Asian countries. Additionally, we continue to explore possibilities of doing business with other vehicle manufacturers as well as new Neah technology opportunities within both the governmental and private sectors
Neah will also be represented at the 7th ASEAN Leadership Forum in Kuala Lumpur, jointly organized by Alsi & ASEANAffairs. A Global Summit on East Asia (Asean + 6: China, Japan, S Korea, India, Australia and N Zealand) organized by ASEANAffairs and partners. In June, Neah plans to attend the Global India Business Meeting, in Madrid, Spain, organized by Horasis, of Switzerland.
As shareholders, you know that Neah completed development of a prototype under its second contract with the Office of Naval Research (ONR) in September 2009, and has customer agreements with Hobie Cat (sail boat and catamaran company) to develop fuel cells for its products. Those activities continue.
ASEAN has a program to invest as much as US$100 million in venture capital funds to raise US$1 billion and is investing US$100 million in five private equity funds, which plan to finish raising US$1 billion by next year, said M. Shin Kim, an investment specialist with ADB. ADB plans to "channel" around US$700 million from two new investment funds to its member countries as part of a global initiative to help developing countries meet the cost of combating climate change, it said on December 3. www.aseanaffairs.com/event/aabc/march10">http://www.aseanaffairs.com/event/aabc/march10
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/">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, 2009 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.