Millennium Cell Awarded National Science Foundation Phase I SBIR Grant

EATONTOWN, N.J.--May 25, 2006--Millennium Cell Inc. , a leading developer of hydrogen battery technology, today announced that it has been awarded a Phase I Small Business Innovation Research Program ("SBIR") Grant by the National Science Foundation ("NSF") to develop a new hydrogen storage technology based on solid fuel blends that include borohydrides. This technology, if successfully developed, would enable a new class of safe, reliable, and high energy dense hydrogen batteries for use in portable devices in our target markets.

The NSF SBIR grant was awarded following competitive merit-based reviews by a panel of experts from academia, industry and government labs. The work performed under this six-month program will build upon patent-pending technology already developed by Millennium Cell and could result in a Phase II award, which would be a two-year effort. The Company will subcontract a portion of the work to Professor Michael A. Matthews' research group at the University of South Carolina. Professor Matthews is an expert in the area of chemical kinetics for hydrogen generation reactions.

"We are delighted to collaborate with the University of South Carolina in developing this innovative technology, with funding support from the National Science Foundation. This effort fits nicely into Millennium Cell's plan to continuously increase the energy density and safety while reducing the cost of hydrogen batteries so that we can meet the needs of the military, industrial, medical and consumer electronics markets," commented Adam P. Briggs, Millennium Cell President. "This program will fund the development of the fourth generation borohydride chemistry invented by our research team. We expect that the resulting products will provide a competitive advantage to our licensees for years to come."

The Company already has disclosed plans to deliver its third generation portable hydrogen storage technology based on the hydrolysis of solid sodium borohydride to its licensees for evaluation by the end of 2006. The approach funded by the NSF SBIR could lead to a next generation hydrogen storage technology for our licensees to leverage in the future.

About Millennium Cell

Millennium Cell develops hydrogen battery technology through a patented chemical process that safely stores and delivers hydrogen energy to power portable devices. The borohydride-based technology can be scaled to fit any application requiring high energy density for a long run time in a compact space. The Company is working with market partners to meet demand for its patented process in four areas: military, medical, industrial and consumer electronics. For more information, visit http://millenniumcell.com.

Cautionary Note Regarding Forward-looking Statements:

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 and are subject to risks. Forward-looking statements are identified by their use of terms and phrases such as "believe," "expect," "plan," "anticipate," "on target" 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, many of which are outside of our control, 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 fuel storage and delivery system; (ii) the cost and commercial availability of the quantities of raw materials required by the hydrogen fuel storage and delivery systems; (iii) competition from current, improving and alternative power technologies; (iv) Millennium Cell's ability to raise capital at the times, in the amounts and at the costs and terms that are acceptable to fund the development and commercialization of its hydrogen fuel storage and delivery system and its business plan; (v) Millennium Cell's ability to protect its intellectual property; (vi) Millennium Cell's ability to achieve budgeted revenue and expense amounts; (vii) Millennium Cell's ability to generate revenues from the sale or license of, or provision of services related to, its technology; (viii) Millennium Cell's ability to form strategic alliances or partnerships to help promote our technology and achieve market acceptance; (ix) Millennium Cell's ability to generate design, engineering or management services revenue opportunities in the hydrogen generation or fuel cell markets; (x) Millennium Cell's ability to secure government funding of its research and development and technology demonstration projects; and (xi) other factors discussed under the caption "Investment Considerations" in Millennium Cell's Annual Report on Form 10-K for the year ended December 31, 2005.