Astris Energi Inc.

Astris Energi Inc.

March 28, 2005 09:15 ET

Astris Energi Closes Convertible Debenture Financing


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: ASTRIS ENERGI INC.

OTC Bulletin Board SYMBOL: ASRNF

MARCH 28, 2005 - 09:15 ET

Astris Energi Closes Convertible Debenture Financing

MISSISSAUGA, ONTARIO--(CCNMatthews - March 28, 2005) - Astris Energi
Inc. (OTCBB:ASRNF), the world's leading alkaline fuel cell (AFC)
technology company, announced today that it has closed a convertible
debenture financing for gross proceeds of CDN$420,000. The debenture was
available for subscription to "Canadian accredited investors" only and
included a coupon for 6%, payable in common shares upon conversion or
maturity.

The financing was arranged by Toronto investment house Fraser Mackenzie
Limited. Each debenture is convertible into Common Shares at a
conversion rate that in no case shall be less than USD$0.20 or more than
USD$0.70. The debentures mature on December 10, 2005, 270 days from the
date of issuance. Astris intends to file a registration statement. Total
net proceeds were CDN$378,000. Fraser Mackenzie Limited, for
facilitating the funding, also received 156,000 broker warrants at
CDN$0.27 exercisable for a period of two years from the closing date of
this transaction. Proceeds from this financing will be used for
operations, with a focus on the marketing and demonstration of Astris'
line of AFC generators to prospective large strategic partners.

"The debenture provides us with bridge financing that will be used until
the previously announced second, larger financing is completed," said
Anthony Durkacz, Vice President of Finance. "It will enable us to
aggressively pursue channel partners for the commercialization of our
line of AFC generators and use the resulting sales orders to drive our
production."

About Astris Energi Inc.

Astris is a late-stage development company committed to becoming the
leading provider of affordable fuel cells and fuel cell generators
internationally. Over the past 21 years, more than $17 million has been
spent to develop Astris' alkaline fuel cell for commercial applications.
Astris is commencing pilot production of its POWERSTACK™ MC250
technology in 2005. Astris is the only publicly traded company in North
America focused exclusively on the alkaline fuel cell. Additional
information is also available at the company's website at www.astris.ca.

Forward-Looking Statements

Any statements in this release that are not statements of fact may be
considered "forward looking statements" as that term is defined under
securities laws in the United States and Canada. Forward-looking
statements are only predictions and may differ materially from actual
events or results.

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