SEATTLE, April 9, 2009 (GLOBE NEWSWIRE) -- NEAH Power Systems, Inc. (OTCBB:NPWS) has issued the following letter to its shareholders.
Apr 9th 2009
Nothing delights a Chief Executive Officer of a public company more than imparting good news to the Company's shareholders. And I have good news. Despite a difficult economy and general uncertainty among investors, NEAH is making significant progress. Since I became Chief Executive Officer and President of NEAH Power Systems on Feb. 1st 2008, we have finished research and beta testing of our unique methanol-based fuel cell, our primary product. We also completed our first Office of Naval Research contract and received a second contract worth $1.2 million to aid in funding its further development.
During the past year, we have reduced our burn rate by more than 40%, made significant progress on the technology, announced manufacturing partners and other strategic alliances, and have been the subject of articles in various journals that emphasize the disruptive and unique product that we have to offer. I am also pleased to say that the confidence in our Company is growing, as illustrated by Agile Opportunity Fund, LLC, and its further investment of $225,000 in your Company to complete ongoing operations.
We are currently focusing on our anaerobic (non-air breathing) fuel cell system, that is funded by the Office of Naval Research. We have made significant progress on this technology, which has very limited competition. Our initial products will leverage this unique capability for markets such as underwater unmanned and manned vehicles, sensor power supply for remote / border applications and stand-by power generators. These high value markets face a critical need that we can meet with this unique product. Beyond that, we will develop solutions for aerobic (air breathing) applications.
Furthermore, we recently announced that we had signed an agreement to acquire SolCool One, LLC, a leader in the solar air conditioning industry. SolCool specializes in supplying solar air conditioning systems, in addition to a distribution and support network in various regions throughout the world and with a manufacturing partner in China. SolCool has shipped more than 45 systems and currently has a strong pipeline commitment for hundreds of additional systems in 2009 and 2010. This is a synergistic operation and we expect it to become another income stream, once the acquisition is completed. The synergies exist around using the SolCool distribution network to sell NEAH's products, the potential integration of a fuel cell for extended operation, and the development of RAPS (Remote Area Power Supplies) using fuel cell and renewable power sources for off-the-grid power.
As shareholders, you know that NEAH is a science-based organization that has patented a novel energy-generating device that can take the place of batteries. That fact alone is revolutionary, in that it has broad applications for the military, for police, fire departments, government applications and for end users like yourselves; the notebook PC, PDA, mobile phone, camcorder, digital camera and other portable electronic device-carriers who are limited today by their battery life. Users demand a convenient and longer-lasting power source to keep up with their connected lives. NEAH delivers continuous untethered power.
The demand for long running, portable power has been growing in the past few years driven by military and first responder needs, as well as an insatiable appetite for consumer electronics. Lithium-ion and other rechargeable battery technologies have not kept up with this demand, creating a "Power Gap." Lithium-ion batteries are being pushed to their limits, and there are concerns about their safety. Fuel cells are "always on" and use methanol, a renewable resource. In the military, as an example, instead of carrying multiple batteries, soldiers would need to carry only one fuel cell and cartridges for continuous power capability -- lessening their load by 70%.
First responders need reliable and long-lasting communications, sensors, and other portable electronics devices. Police, fire, and other first responder personnel often operate where power is unavailable. Their reliance on communications and related devices is absolute and often a matter of life or death. First responders will be able to continuously run their electronic equipment without the need to wait for recharging.
Another industry NEAH will impact is logistics, an information-intensive industry using technology to increase inventory turns and deliver goods where and when they are needed. Logistics workers, warehouse personnel, drivers, rental car employees, even ski lift operators, have been able to increase productivity and speed service with mobile tracking devices connected to information networks. The batteries in these mobile tracking devices often run out before a shift is completed. Elaborate "recharging stations" are often set up to ensure that a fresh supply of batteries is readily available. Besides the inconvenience, these solutions consume time, space, and capital. Users are demanding power solutions that can work as hard as they do -- up to 12-hour shifts in many cases. This is not possible with current rechargeable battery technology, such as lithium-ion or nickel-metal hydride. NEAH's fuel cells provide power that lasts the entire shift.
Our focused and experienced management team has senior level contacts in businesses and governments worldwide, and our executives and staff have a clear understanding of the technology and how it applies to the target markets. We continue to have capital constraints, and the company is pursuing various avenues to raise capital.
Look for your company to increase its already strong marketing program as we introduce our patented technology to the public and to a large framework of industry leaders and government agencies, which will give us the opportunity to both educate and demonstrate our technology.
I want to thank you for your support during what has been an eventful, if turbulent year. Through it all, I believe that we have begun to build a foundation that will reward the confidence placed in us. We are optimistic concerning our short and long-term prospects. I welcome your joining me in looking forward to another year full of potential.
Sincerely,
Chris D'Couto
Chief Executive Office & President
About NEAH Power
NEAH Power Systems, Inc. (OTCBB:NPWS) 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
This press release contains forward looking statements and made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect numerous assumptions and involve a variety of risks and uncertainties, many of which are beyond the company's control, that may cause actual results to differ materially from stated expectations. Factors that might cause such material difference include, among others, our limited operating history, potential research and prototype delays, difficulties in developing and commercializing new technologies.