MISSISSAUGA, Ontario, May 2, 2005 (PRIMEZONE) -- Astris Energi Inc. (OTCBB:ASRNF), the world's leading alkaline fuel cell (AFC) technology company, today reported its audited financial results for the twelve months ended December 31, 2004. All amounts are in Canadian dollars unless otherwise indicated.
12-Month Financial Review
Revenue for the year ended December 31, 2004 was $88,798, compared with $67,870 for the previous year. The main source of revenue in 2004 was from the sale of fuel cells and an E8 Portable AFC Generator. The E8 was sold to Alternate Energy Corporation under a value added reseller agreement signed in May 2004.
Expenses for the 2004 fiscal year totalled $3,551,055 compared with $2,274,839 for the same period in 2003. The main expense increases were in General and Administrative expenses, reflecting stock option expensing, additions to management, higher consulting expenses for additional fund raising, and the hiring of new technical and administrative staff to support the fast growth of the company. In addition, there was an increase in Research and Development expenses from $1,229,184 in 2003 to $1,343,695 in 2004 due to an increase in research and development work on the company's POWERSTACK(tm) MC250 power module, the second-generation Model E7-powered Freedom II Golf Car, the 2.4kW Model E8 Portable Power Generator, and equipment purchase and assembly of Astris' pilot production line.
Astris reported a net loss for the year ended December 31, 2004 of $3,462,257 compared with a loss of $2,206,969 in 2003. On a per share basis, the loss was $0.16 (basic and diluted) compared with a loss of $0.12 (basic and diluted) in 2003.
During the year ended December 31, 2004, Astris raised $2,076,041 through the private placements of shares and warrants compared with $1,193,165 in 2003.
Recent Operational Highlights
-- Phase I of the pilot production line was completed at Astris
s.r.o in the Czech Republic. The semi-automatic line provides a
ten-fold increase in production capacity for the manufacture of
anodes and cathodes for the POWERSTACK(tm) MC250 fuel cell module.
As a result, Astris s.r.o. is on target to ramp up to 200kW
worth of capacity using one shift.
-- Astris signed a Cooperation Agreement with Italy's Electronic
machining s.r.l. (El.Ma.) under which Astris will license its AFC
technology and market its products and consulting services to
El.Ma. In turn El.Ma. will apply its research and manufacturing
expertise to the further commercialization and production
development of Astris' AFC technology. Together Astris and
El.Ma. will develop a sales and marketing plan aimed at the
Italian market with El.Ma. also serving as a key representative
for Astris in Europe.
-- Freedom II, Astris' second-generation Golf Car was completed. It
is powered by the new 1.8kW, Model E7 AFC Generator, giving it
double the power and double the acceleration of the original
model which was the world's first AFC-powered golf car using
hydrogen fuel.
-- Astris sold its first Model E8 generator to Alternate Energy
Corporation (OTCBB:ARGY). The purchase order for the sale also
included five additional E8s to be delivered in stages later in
2005, subject to certain performance conditions being met.
-- Astris Energi Inc. acquired the remaining 70% of the outstanding
shares of its affiliate Astris s.r.o. The total cost of
$2,209,000 was paid through the issuance of common shares and
warrants.
-- Astris signed a Teaming Agreement with Plasma Environmental
Technologies Inc. (TSX-V:PE) of Burlington, Ontario for the
development of a real-world installation utilizing PET's
hydrogen-producing waste processing system and Astris' AFC
technology.
-- Astris hired the Toronto investment firm Fraser Mackenzie Limited
as its exclusive investment banker. To date, Fraser Mackenzie
has arranged a bridge financing of $420,000 (net proceeds of
$378,000) through a 6% convertible debenture due December 10,
2005. A second financing, through the sale of corporate
securities, will be sought. The goal of the proposed financing
is to raise between $2,500,000 and $3,500,000 for operational
expenses, marketing and the initiation of Phase II of Astris'
pilot production line.
"Astris has had a very successful year," said Jiri Nor, Astris' President and CEO. "The completion of the pilot production line, our first E8 sale, the launch of the new Freedom II Golf Car, and the various agreements with Alternate Energy, El.Ma., and Plasma Environmental Technologies are all indicators of the progress we are making towards the commercialization of our product line. Astris looks forward to an exciting year focused on the business development of our world leading alkaline fuel cell technology."
About Astris Energi Inc.
Astris is a late-stage development company committed to becoming the leading provider of affordable fuel cells and fuel cell generators internationally. Astris is commencing pilot production of its POWERSTACK(tm) MC250 technology in 2005. Astris is the only publicly traded company in North America focused exclusively on the alkaline fuel cell. Additional information is also available at the company's website at www.astris.ca.
Forward-Looking Statements
Any statements in this release that are not statements of fact may be considered "forward looking statements" as that term is defined under securities laws in the United States and Canada. Forward-looking statements are only predictions and may differ materially from actual events or results.