Manhattan Scientifics, Inc. (OTC Bulletin Board: MHTX) announced today that it has completed initial development and initial testing of the "HYDROCYLE(TM)," a fuel cell powered bicycle. The prototype bicycle utilizes Manhattan Scientifics' unique and proprietary mid-range power technology developed by the company's NovArs unit in Passau, Germany.

Jack Harrod, Manhattan Scientifics' COO, said, "We are very excited about the results obtained from the HYDROCYCLE(TM). Our fuel cell powered bicycle offers a strong value proposition when compared to today's battery powered bicycles. The HYDROCYCLE(TM) is also wonderfully quiet and gives off no emissions other than a small amount of water vapor. It is a real experience to ride through a forest and only hear the sound of the tires on the dirt road. In the noisy, polluted cities of Asia and elsewhere in the world, we believe the HYDROCYCLE(TM) could make an enormous difference in the quality of life of the people in those cities. We have opened discussions with industry leaders in the powered bicycle and scooter segments about possible applications."

The NovArs mid-range technology, which ranges from several watts to several kilowatts, has potential applications for laptop computers and other portable electronics, golf carts, wheel chairs, cordless power tools, electric kitchen appliances, alarm systems and remote power stations.

The power supply unit is based on a polymer electrolyte fuel cell that uses hydrogen and air to produce electric power. It is completely pollution- free. The fuel cell's unique design is based on the use of advanced composite materials and sealing technology to minimize size and weight. This makes it potentially ideal as a power source for portable electronic equipment or lightweight, personal transportation applications. The company has applied for patent protection in the United States, Europe and other key markets around the world.

The cylindrical-shaped fuel cell stack, which powers the HYDROCYCLE(TM), weighs only 780 grams, delivers 670 watts of power to a hub motor. The hydrogen fuel is contained in a two-liter carbon fiber reinforced pressure vessel located behind the bicycle seat. This provides the cyclist with a driving range of up to 70-100 km (flat surface) at a top speed of 30 km/h. In production, the fuel tank could be integrated into the frame of the bicycle.

With the minimal ancillary equipment needed by the system, energy densities of 205 watts/kilogram and 115 watts/liter can be reached. In comparison to conventional battery systems, the complete HYDROCYCLE(TM) fuel cell system has about seven times more energy density than lead acid batteries (30 w/kg) and more than three times the energy density of NiMeH batteries (60 w/kg).

Dr. Arthur Koschany, founder and chief scientist of NovArs, said, "We decided to build the bicycle to demonstrate the key features of our technology -- the lightest weight, most compact stack for a given power (power densities of 860 w/kg and 590 w/l). Other bicycle models, for different applications, will follow using similar materials with parameters optimized for both lower and higher power output ranges."

Manhattan Scientifics' CEO Marvin Maslow said, "The Japan Cycle Press estimates there will be 1 billion electric bikes on the roads by the year 2020 -- mostly in Asia with smaller niche markets in Europe and the United States. In Asian countries such as India, massive amounts of goods are transported every day by scooters driven by heavily polluting two-cycle engines. These societies are literally choking on gas and diesel fumes. Electric powered bikes and scooters could provide significant improvements for their environments and consequently their economies. In his book Bike Cult, author David Perry notes that in China, India and Japan alone there are currently 405 million bicycles in use. He says that in Tianjin, China an estimated 77% of daily trips are made by bicycle. In Shenyang, China that number is 65% and in Beijing 48%. This clearly suggests the potential for a low cost, environmentally clean, fuel cell powered bicycle."