Contact Information: CONTACT: Medis Technologies Ltd. Robert K. Lifton Chairman & CEO (212) 935-8484 INVESTOR RELATIONS COUNSEL: The Equity Group Inc. Adam Prior, (212) 836-9606 Devin Sullivan, (212) 836-9608
Medis Technologies Announces Agreement With Israel Aircraft Industries to Develop Fuel Cells to Power UAV Systems
| Source: Medis Technologies Ltd.
NEW YORK, NY -- (MARKET WIRE) -- October 24, 2006 -- Medis Technologies Ltd. (NASDAQ : MDTL ) today
announced that it has entered into an agreement with Israel Aircraft
Industries Ltd. ("IAI"), to develop an 800 watt fuel cell to electrically
power Unmanned Air Vehicle systems (UAVs). IAI is Israel's largest
aerospace company and a world leader in developing and selling UAV Systems.
The contract provides for two phases of activity. The first phase, which
covers a six-month period, provides for Medis to develop a demonstration
system which would pass functionality tests and which can be demonstrated
to be redesignable to achieve the weight (6 kilograms) goals of the final
system. The first phase is funded by IAI paying Medis $400,000. Upon the
successful completion of the first phase, the second phase would require
IAI to pay Medis approximately $1,500,000 to complete the development and
would have an 18-month schedule. During the first phase of the contract and
conditioned on minimum purchase requirements thereafter, IAI will be
granted exclusivity with respect to large fuel cells for unmanned vehicles.
The contract with IAI will be carried out by Medis as the prime contractor
together with its strategic partner, Oy Hydrocell of Finland, as the main
subcontractor.
"We are particularly pleased with this purchase contract from IAI," said
Robert K. Lifton, Chairman & CEO of Medis Technologies. "IAI is a world
leader in UAV Systems, having sold many and various such systems to the
Israel Defense Forces and to many other defense forces around the world.
Once development is completed, we expect that IAI will begin ordering the
new fuel cells from Medis for future UAV systems. We see this also as a
vote of confidence from a major shareholder of Medis. This is an important
milestone in our strategic goal to develop larger fuel cells for military
applications and emergency stand-by use for homes and offices, as we
recently announced. Now that we are starting the commercialization of our
24/7 Power Pack product, Medis' substantial research and development
resources and infrastructure can be applied to our next generation products
and to the new larger fuel cell systems which we envision developing."
Medis Technologies' primary focus is on direct liquid fuel cell technology.
Its business strategy is to sell its products to end users through retail
outlets, service providers and to the military and other markets. Medis has
also developed the CellScan with many potential applications relating to
disease diagnostics and chemo sensitivity. Additionally, Medis' product
pipeline includes other technologies, in varying stages of development.
This press release may contain forward-looking statements, which are made
pursuant to the safe harbor provisions of the Private Securities Litigation
Reform Act of 1995. In some cases you can identify those so-called
"forward-looking statements" by words such as "may," "will," "should,"
"expects," "plans," "targets," "believes," "anticipates," "estimates,"
"predicts," "potential," or "continue" or the negative of those words and
other comparable words. These forward-looking statements are subject to
risks and uncertainties, product tests, commercialization risks,
availability of financing and results of financing efforts that could cause
actual results to differ materially from historical results or those
anticipated. Further information regarding these and other risks is
described from time to time in the Company's filings with the SEC. We
assume no obligation to update or alter our forward-looking statements made
in this release or in any periodic report filed by us under the Securities
Exchange Act of 1934 or any other document, whether as a result of new
information, future events or otherwise, except as otherwise required by
applicable federal securities laws.
This press release is available on Medis' web site at
www.medistechnologies.com.