Astris Seeks to Arbitrate Joint Venture Pact with CareAction Inc.

MISSISSAUGA, Ontario, Canada--Oct. 1, 20037, 2003--Astris Energi Inc. (OTC BB:ASRNF), leading developers of alkaline fuel cell technology, reported today that it has notified CareAutomotive Inc., formerly CareAction Inc. (Care) of Montreal, Quebec, that it intends to proceed to arbitration on the three agreements that comprise the joint venture pact signed by the two companies last February.

"We have waited six months for Care's management to secure the funds required to fulfill their financial obligations to Astris," said Jiri K. Nor, president and CEO of Astris Energi. "Regretfully, they have been unable to uphold their side of the agreements. If they cannot provide the funding now, we will seek to withdraw from this proposed venture and focus our attention and resources on new and greater opportunities which have recently presented themselves."

"All the agreements were subject to Care receiving its financing. We have waited to this day for that financing to take place and receive the funding contracted to us," commented Lynnwood Farr, president of Care.

The arbitration provision is contained in the investment agreement and the license agreement covering exclusive access to Astris' world-leading alkaline fuel cell technology for all modes of transportation. The agreements state that a decision by an arbitrator shall be final and binding upon both parties.

Further action, Nor said, must now await the arbitrator's decision on Astris' right of termination under existing circumstances.

The joint venture provided for establishment of Astris Transportation Systems Inc. (ATSI), which would manufacture and market fuel cell energy systems, primarily for vehicular use. If termination is effected, Astris will quickly pursue this market with another partner, Nor asserted.

Any statement in this release that is not a statement of fact may be considered a "forward-looking statement," as that term is defined under federal security laws. Forward-looking statements are only predictions and may differ materially from actual events or results.

NOTE: Parties interested in receiving Astris news releases or corporate documents may e-mail such a request to anthony@astrisfuelcell.com. They can also review the company's Web site at www.astrisfuelcell.com or its public documents at www.sedar.com or www.sec.gov.