Millennium Cell Announces Agreement to Sell Fuel Systems to PSA Peugeot Citroen -Bye Bye OPEC

    EATONTOWN, N.J.--Dec. 4, 2001--Millennium Cell Inc. , a development-stage company that has created a proprietary technology to safely generate and store hydrogen, announced today that an agreement has been signed with European automaker PSA Peugeot Citroen to provide prototype Hydrogen on Demand(TM) fuel systems for evaluation and integration into electric powered vehicles.
    The initial stage of the agreement calls for PSA Peugeot Citroen to purchase the fuel systems, taking delivery early in 2002. Following successful evaluation and integration efforts, a Joint Development Agreement is anticipated.
    PSA Peugeot Citroen is the global leader in the manufacture of electric cars, having produced more than 9,000 electric vehicles to date. The Hydrogen on Demand(TM) fuel systems will be integrated into a prototype based on PSA Peugeot Citroen's recently announced Fuel Cell Cab.
    "PSA Peugeot Citroen has taken a very practical approach to bringing the fuel cell vehicle to market using its existing battery powered taxi. We believe our Hydrogen on Demand(TM) fuel system provides important range extending technology in a very compact package that no other hydrogen storage alternative can provide," said Rex Luzader, Millennium Cell Vice President, Business Development for Transportation and Hydrogen-Fuel Infrastructure. "Millennium Cell's expertise in hydrogen fuel systems is complemented by PSA's automotive design and engineering capability to create an exciting collaboration. We are eager to begin the on-vehicle integration of our Hydrogen on Demand(TM) fuel system."
    "We believe that fuel cell technology will assume a major role in the automobile industry," said Pascal Henault, PSA Peugeot Citroen Vice President, Automotive Research and Innovation. "In order for that to happen, development of a robust hydrogen fuel system to feed the fuel cell is critical. We are eager to begin collaborating with Millennium Cell to integrate the Hydrogen on Demand(TM) technology into our electric vehicles and are at this point enthusiastic about the possibilities that the technology offers for the clean, safe on-board generation of hydrogen without sacrificing range or performance."
    "This agreement marks an important milestone for Millennium Cell, as we work to commercialize our technology across energy markets worldwide," said Stephen Tang, Millennium Cell President and CEO. "Partnerships with world leading manufacturers like PSA Peugeot Citroen are critical to the speedy implementation of our technology for a variety of energy applications and we are gratified to be working with a company of this stature."

About Millennium Cell

    Founded in 1998, Millennium Cell is based in Eatontown, NJ and is focused on developing new, clean and abundant energy sources. Millennium Cell has invented and developed a proprietary process called Hydrogen on Demand(TM) that safely generates pure hydrogen or electricity from environmentally friendly raw materials. In the process, the energy potential of hydrogen is carried in the chemical bonds of sodium borohydride, which in the presence of a particular catalyst either releases hydrogen or produces electricity. The primary input components of the reaction are water and sodium borohydride, a derivative of borax. Borax is found in substantial natural reserves globally. Millennium Cell technology can be applied in transportation and portable power, including micro-power and long-life batteries.
    The company is traded on NASDAQ under the symbol MCEL. For more information on Millennium Cell, visit www.millenniumcell.com or call 732-542-4000.

About PSA Peugeot Citroen

    PSA Peugeot Citroen is the world's sixth largest car maker with 3 million vehicles sold in 2001. The Group is the second-largest car manufacturer on the European market with a 15% market share at the end of October 2001. At this time, the Group is first in the French, Spanish, Belgian and Danish markets, and second in the U.K., Portugal, the Netherlands and Greece. Sales have grown 50% in the last four years. The Group includes 195,000 employees worldwide.

    This press release may include statements that are not historical facts and are considered "forward-looking" within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect Millennium Cell's current views about future events and financial performance. These forward-looking statements are identified by their use of terms and phrases such as "believe," "expect," "plan," "anticipate", "possibility" and similar expressions identifying forward-looking statements. Investors should not rely on forward-looking statements because they are subject to a variety of risks, uncertainties and other factors that could cause actual results to differ materially from Millennium Cell's expectations, and Millennium Cell expressly does not undertake any duty to update forward-looking statements. These factors include, but are not limited to, the following: (i) the cost and timing of development and market acceptance of Millennium Cell's hydrogen generation systems, (ii) competitive factors, such as price competition and new product introductions, (iii) the cost and availability of products, (iv) the cost of complying with current governmental regulations, (v), the accuracy of cash flow and earnings per share predictions and (vi) other factors detailed from time to time in Millennium Cell's filings with the Securities and Exchange Commission. Company management does not attempt to update forecasts unless conditions materially change.