AlumiFuel Power Reports Progress in Back-Up Power and Undersea Vehicle Power Applications Initiatives

   Early production stage hydrogen generation company AlumiFuel Power Corporation (OTCBB: AFPW) (the "Company") through its subsidiaries, announced today that discussions with key industry players in two separate applications areas have progressed to the point where Non-Disclosure Agreements have been signed and a detailed assessment of requirements is underway. In both cases, the industry players are interested in the Company's technology since it provides viable new sources and methods of generating hydrogen.

AlumiFuel and a major back-up power company are addressing a specific requirement for a 5kW stationary power system providing back-up for telecommunications and medical facilities. AFPW's technology is particularly attractive to the industry player because: (1) the 99.99% purity of its hydrogen is ideal for feeding fuel cells as compared with other sources of hydrogen that contain contaminants which must otherwise be removed; and (2) the hydrogen generation system is reliable in locations with hot or cold weather extremes. An initial design concept has 6 large AlumiFuel cartridges providing 19 hours of back-up power for a 5kW power cabinet.

A major aerospace and marine systems company recently completed a survey of "hydrogen on demand" technologies, and concluded that the AlumiFuel system has a lot of potential for commercial undersea vehicle applications. They believe this especially true in harsh maritime environments such as the Arctic Ocean area, where oil and natural gas firms are conducting ocean floor surveys for drilling, and battery powered systems are ineffective in such extremely cold climates. AlumiFuel and its undersea vehicle power partner, Ingenium Technologies, are actively exploring this application with its previously developed technology solutions for undersea power.

The Company's Chief Technology Officer, Mr. John Boyle, said: "These two new opportunities represent an extension of our lift gas hydrogen generation technology and products to other addressable applications which we believe will be major markets for AFPW going forward."

About AlumiFuel Power Corporation AlumiFuel Power Corporation, operating through its subsidiaries, is an early production stage alternative energy company that generates hydrogen gas and steam/heat through the chemical reaction of aluminum, water, and proprietary additives. This technology is ideally suited for multiple applications requiring on-site, on-demand fuel sources, serving National Security and commercial customers. The Company's hydrogen feeds fuel cells for portable and back-up power; fills inflatable devices such as weather balloons; can replace costly, hard-to-handle and high pressure K-Cylinders; and provides fuel for flameless heater applications. Its hydrogen/heat output is also being designed and developed to drive fuel cell-based and turbine-based undersea propulsion systems and auxiliary power systems. The Company has significant differentiators in performance, adaptability, safety and cost-effectiveness in its target market applications, with no external power required and no toxic chemicals or by-products.

Safe Harbor for Forward-looking Statements This news release may contain forward-looking statements that are made pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. While these statements are made to convey to the public the company's progress, business opportunities and growth prospects, they are based on management's current beliefs and assumptions as to future events. However, since the company's operations and business prospects are always subject to risk and uncertainties, the forward-looking events and circumstances discussed in this news release might not occur, and actual results could differ materially from those described, anticipated or implied. For a more complete discussion of such risks and uncertainties, please refer to the company's filings with the Securities and Exchange Commission.

CONTACTS: Investor Relations: AlumiFuel Power Corporation Thomas B. Olson Corporate Secretary 303-796-8940 Technical Information & Marketing: Email Contact 610-660-7775