USD 2 Million NIST Grant

RNS Number:9381E
PolyFuel Inc.
02 October 2007




2 October 2007


  POLYFUEL AWARDED $2m IN FUNDING FROM US NATIONAL INSTITUTE OF STANDARDS AND
               TECHNOLOGY TO DEVELOP ULTRA-LOW CROSSOVER MEMBRANE


PolyFuel Inc. (AIM:PYF), a world leader in fuel cell technology, particularly
engineered membranes that provide significantly improved performance in direct
methanol fuel cells for portable electronic applications, announces that the US
National Institute of Standards and Technology (NIST) has awarded PolyFuel $2
million over 2 years in support of the Company's work to develop a new,
ultra-low crossover membrane for portable fuel cells.


The project, which will commence in November 2007, is part of NIST's Advanced
Technology Program, which seeks to advance key technologies that are expected to
deliver significant potential benefits to US industry and the economy. The
objective of the project is to dramatically advance the state of portable fuel
cell technology by developing a fuel cell membrane that exhibits ultra-low
levels of fuel crossover, with a target reduction of 75% relative to the already
low levels achieved by PolyFuel to date.


Most of the world's leading consumer electronics manufacturers are either
testing or have already adopted PolyFuel's current generation of low crossover
membrane materials. Provided the NIST ATP project is successful, it will allow
portable fuel cell system developers to design systems that are even smaller,
lighter, cheaper and longer running than those currently possible with
PolyFuel's existing state-of-the-art materials.

This award follows the announcement in May 2007 that the US Department of Energy
had restored approximately $2 million in programme funding to PolyFuel to
develop a prototype "reference design" for an all day runtime power supply for a
laptop PC.

PolyFuel President and CEO Jim Balcom said, "I am delighted with the backing
that NIST is providing PolyFuel in support of our work to develop a new
ultra-low crossover membrane. We believe that we are on the cusp of seeing
portable fuel cells surpass Lithium-ion batteries in terms of size and weight
for all day runtime laptop PC applications, but there are plenty of
opportunities to advance the technology even further. The NIST ATP award
provides just such an opportunity. If successful, the rate of adoption of this
technology can be expected to increase, and the types of potential applications
for portable fuel cells expanded."

                                     -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]
Seema Paterson / Mark Connelly



About PolyFuel:


PolyFuel (www.polyfuel.com) is a world leader in fuel cell technology,
particularly engineered membranes, that provides significantly improved
performance in both direct methanol and hydrogen fuel cells, especially for
portable electronic and automotive applications. The state of the art in fuel
cells is closely tied to the membrane, and PolyFuel's best in class,
hydrocarbon-based membranes 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 an unmatched 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 more than 150 combined
years of fuel cell experience, world-class polymer nano-architects, and a
fundamental patent position covering more than 25 different inventions - also
makes PolyFuel an essential development partner and supplier to any company
seeking to advance the state of the art in fuel cells. Fuel cells built with
PolyFuel's hydrocarbon membranes, as the Company's own performance-leading
reference designs have demonstrated, 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 hydrocarbon membrane as the best portable fuel cell
membrane available in the world today, and its DMFC stack technology, which it
readily shares with its customers, is unsurpassed.


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 market of
the London Stock Exchange.



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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