Pre-close Trading Update

RNS Number:8034A
PolyFuel Inc.
25 July 2007


25 July 2007

                                  PolyFuel Inc
                         ("PolyFuel" or the "Company")

                        Pre-close period trading update

PolyFuel Inc (AIM: PYF), a world leader in the development of engineered
membranes for portable fuel cells, today provides a trading update in advance of
entering into the close period prior to the announcement of its interim results
for the six months ended 30 June 2007.

The Company continues to anticipate that the leading portable fuel cell system
developers will commence early commercialisation activities in various portable
electronic applications from 2008/2009, following on from test market activities
in 2007/2008.

During the six months to the end of June, PolyFuel has continued to make
progress in working with customers to advance fuel cells from development to
market introduction:

   *PolyFuel is pleased to announce that it has achieved a significant
    milestone in its relationship with Johnson Matthey Fuel Cells (JMFC) as the
    Company recently passed a rigorous vendor qualification audit. This audit is
    a key step in the process of positioning PolyFuel to supply commercial
    quantities of its hydrocarbon membranes for incorporation into JMFC's
    value-added fuel cell products.

   *PolyFuel has secured three new prototype design wins in the year to date
    from leading portable fuel cell system developers.

   *The strong momentum in membrane shipments experienced in the first months
    of the year has continued with shipments so far in 2007 now at over twice
    the level for the whole of 2006.

PolyFuel has in place a full suite of competitive membrane products and in
response to end user demand PolyFuel's channel partner, Johnson Matthey Fuel
Cells, is close to making commercial sales of products based on PolyFuel's
membranes.

During the period, it became clear that certain portable fuel cell system
developers require additional engineering support to optimise the design and
performance of their portable fuel cell systems and components. To address this,
PolyFuel will refocus resources away from generic research and development of
catalyst coated membrane products into engineering support activities to assist
system developers with their fuel cell component and system engineering
challenges.

Re-prioritising activities in this way will reduce overall expenditure levels
and will help the Company to significantly lower its projected cash burn rate.
As a result of these measures, PolyFuel is now well-positioned to finance the
business into the second half of 2009.

PolyFuel expects to announce its interim results for the six months ended 30
June 2007 on Tuesday, 25 September.

There will be a conference call for analysts today at 8.00 am British Summer
Time. Please contact Julie Cordice at Hogarth on [phone] for
details.

                                     -Ends-

For further information please contact:

PolyFuel, Inc                                     Tel: [phone]
Jim Balcom, Chief Executive Officer
Mark Campion, Chief Financial Officer

Hogarth Partnership Limited                       Tel: [phone]
Nick Denton / Sarah MacLeod / Ian Payne

Collins Stewart Europe Limited                    Tel: [phone]
Mark Connelly



About PolyFuel

PolyFuel (www.polyfuel.com) is a world leader in engineered membranes that
provide significantly improved performance in direct methanol fuel cells (DMFC)
and hydrogen fuel cells, particularly for portable electronic and automotive
applications. The state of the art of fuel cells is essentially that of the
membrane, and PolyFuel believes that its advanced, hydrocarbon-based membranes
will enable a new generation of fuel cells that for the first time can deliver
on the long-awaited promise of clean, long-running, and cost-effective portable
power.

PolyFuel has a world class capability to rapidly translate the system-level
requirements of fuel cell designers and manufacturers into engineered polymer
nano-architectures. Such capability - based on PolyFuel's over 150 combined
years of fuel cell experience, world-class polymer nano-architects, and a
fundamental patent position covering more than 23 different inventions - also
makes PolyFuel a key development partner and supplier to any company seeking to
advance the state of the art in fuel cells. Polymer electrolyte fuel cells built
with PolyFuel membranes can be smaller, lighter, longer-running, more efficient,
less expensive and more robust than those made with other membrane materials.

PolyFuel is working with most of the world's leading portable fuel cell system
developers, the majority of whom are household brand name consumer electronics
manufacturers. Several of the largest Japanese and Korean consumer electronics
companies rank PolyFuel's membrane as the best portable fuel cell membrane
available in the world today.

PolyFuel was spun out of SRI International (formerly the Stanford Research
Institute) in 1999, after 14 years of applied membrane research. The company is
based in Mountain View, California, and is publicly listed on the AIM stock
exchange in London.

This news release may contain forward-looking statements, including with respect
to the development of the fuel cell market. Readers are cautioned that such
forward-looking statements involve risks and uncertainties, including, without
limitation, risks inherent in the development and commercialization of potential
products. Actual results may differ materially from the results anticipated in
these forward-looking statements.



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            The company news service from the London Stock Exchange

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