LIVERMORE, CA -- (MARKET WIRE) -- 04/01/08 -- UltraCell Corporation, a leading producer of reformed methanol fuel cells (RMFCs) for mobile power applications, today announced it will begin refining manufacturing of its XX25(TM) portable fuel cell by automating portions of its assembly line in Dayton, Ohio. The company will use a $1 million grant awarded by the Ohio Third Frontier Fuel Cell Program to expand robotic assembly and automated testing equipment as it moves toward high-volume production of the XX25.

"Getting this grant is a strong vote of confidence from the Ohio Department of Development. We're thrilled to have their continued support," said Frank Beafore, UltraCell's vice president of manufacturing. "The enhancements we're making to our manufacturing process will help us increase production of the XX25 to meet customer demand as well as lower assembly costs."

UltraCell's award was given by the Ohio Third Frontier Fuel Cell Program, an initiative to support growth of the fuel cell industry through collaborations that involve Ohio higher education institutions, non-profit research organizations and local companies. $8.9 million in total grants was awarded to 12 companies and research collaborations in this most recent investment in the region's fuel cell industry. The grants are expected to create more than 2,000 jobs for the state of Ohio.

Partnering with UltraCell in its Ohio operations are the University of Dayton Research Institute, Mound Technical Solutions and Invotec.

The company's 30,000-square-foot manufacturing facility in Dayton, Ohio utilizes lean manufacturing and state-of-the-art technology to produce fuel processors, fuel cell and fuel stack assemblies and completed fuel cell engine blocks. UltraCell plans to expand the plant's capacity, adding more jobs as appropriate.

Individuals and organizations whose work contributed to this milestone include:

--  The Dayton Regional Development Coalition - a greater Dayton area
    organization focused on implementing initiatives that start, recruit, grow
    and retain high-value jobs
--  The Third Frontier Project - a ten-year, $1.6 billion initiative to
    expand Ohio's high-tech research capabilities
--  The Ohio Fuel Cell Initiative - a $103 million program aimed at
    creating jobs in the sector
--  Ohio Lieutenant Governor and Director of the Ohio Department of
    Development Lee Fisher
    

About UltraCell

UltraCell is a leading producer of fuel cell systems for mobile devices. The company has an exclusive license with Lawrence Livermore National Laboratories for micro fuel cell technology and has developed new technologies and intellectual property in the field of methanol-based fuel cells. For more information, please contact: UltraCell Corporation, 399 Lindbergh Ave, Livermore, CA. 94551; Tel.: (925) 455-9400; Fax: (925) 455-7750; or visit: www.ultracellpower.com.

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