Contact Information: CONTACT: Medis Technologies Ltd. Robert K. Lifton Chairman & CEO (212) 935-8484 -OR- INVESTOR RELATIONS COUNSEL: The Equity Group Inc. Adam Prior (212) 836-9606 Devin Sullivan (212) 836-9608
Medis Technologies Announces Successful Completion of Power Pack Engineering Test Program by Underwriter Laboratories
| Source: Medis Technologies Ltd.
NEW YORK, NY -- (MARKET WIRE) -- December 20, 2006 -- Medis Technologies Ltd. (NASDAQ : MDTL )
announced today that it has been formally advised by Underwriter
Laboratories (UL) that Medis' 24/7 Power Pack fuel cell product has
successfully completed the engineering test program required for UL
listing. Now that the product engineering tests have been completed, UL
will shortly perform its required Initial Production Inspection (IPI) at
Medis' production facility in Israel so that product can be shipped with
the UL mark. The engineering testing was carried out on Power Packs chosen
at random from Medis' semi-automated line located in Israel. Testing took
place over a period of a number of months in laboratories located in Spain
and in Israel. The tests involved rigorous testing of the Power Pack for a
broad range of criteria relating to product safety. The intense testing
regimen included subjecting the Power Packs to wide temperature ranges,
drop tests, crush test, vibration tests, material tests, storage tests and
other testing. The UL testing program was performed as specified in UL
2265C, which is a publicly available document which can be accessed on the
internet at
http://ulstandardsinfonet.ul.com/outscope/outscope.asp?fn=2265c.html.
"This is a major milestone in bringing our 24/7 Power Pack product to the
market," said Robert K. Lifton, Chairman & CEO of Medis Technologies.
"Successfully completing the demanding engineering tests established by UL,
respected as a world leader in product safety certification, is a testament
to the safety and commercial integrity of our Power Pack. The bar that this
UL testing program has set is very high and will assure the consumer that
any fuel cell product that meets these criteria is safe for use.
"Our customers and potential customers have been awaiting the results of
these tests demonstrating that our Power Packs meet the high level of UL
standards and consequently, with the UL Listing, we anticipate an even
greater pace of orders for Power Packs. Initially, we expect to produce
Power Packs on our semi-automated line and then deliver much larger
quantities from our fully automated line. Construction of that automated
line is on target; the line is in the process of validation in Ismeca's
facilities in Switzerland. As soon as validation is completed, the line
will be dismantled and sent to Celestica's facilities in Ireland where it
is planned to be re-assembled, tested and placed in production.
"Once our production team is satisfied with the operations of the first
fully automated line, we anticipate ordering one or more additional lines
from Ismeca, depending on the level of order flow. We are told that each
new line will require about ten months to build and make operational. The
recent private sale of our Series A 7.25% Convertible Perpetual Preferred
shares by Citigroup Global Markets, Inc., including the exercise of its
over-allotment option, has provided us with gross proceeds of $57,500,000.
We believe that these proceeds, together with other available corporate
funds, leaves us sufficiently capitalized -- with no long term debt -- to
carry out our planned program for additional lines.
"We will have the opportunity at The Consumer Electronic Show (CES) in Las
Vegas, Nevada, that runs from January 8th to 11th, to meet with many
customers and potential customers. We will have a booth in the Innovations
Center demonstrating our Power Pack and other capabilities of our
technology. We look forward to these meetings with considerable
anticipation."
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.