Fuel Cell Developer Neah Power Secures $12m in Venture Funding

Neah Power Systems, Inc., an emerging leader in micro fuel cell technology, today announced that it has raised approximately $12 million in equity funding from Castile Ventures, WestAM, and other investors, including current investors Frazier Technology Ventures, Alta Partners, and Intel Capital. The new funding will be used to support Neah Power's development and commercialisation programs.

The company is developing a silicon-based direct methanol fuel cell (DMFC) aimed at providing longer-lasting power solutions for mobile electronic devices, such as notebook PCs, camcorders, and advanced communications products. By leveraging the scalability of its silicon-based design architecture, Neah Power fuel cells have the potential to achieve higher power and smaller size than competing micro fuel cell technologies. Most recently the company was selected as "Start Up Company of the Year" by the Alliance of Angels (AoA), a non-profit organization that connects promising early-stage technology companies with seed capital in the Pacific Northwest.

"We took a long, hard look at the entire DMFC category and concluded that traditional technology approaches seemed unlikely to succeed," said Roger Walton, partner at Castile Ventures. "Neah Power's patented silicon-based design, in comparison, has the potential to scale and set the standard for the category. We look forward to sharing our expertise and helping Neah Power become a break-out, commercially successful company."

"We have been following developments in the fuel cell industry for several years and believe that Neah Power's strong management team, coupled with their technology solution for the micro portable device segment, positions them to be a market leader," said Mark Worley, a partner at the institutional private equity firm, WestAM. "We are pleased to join the team of co-investors to help the company reach its potential."

"We're thrilled to have Castile Ventures and WestAM give us this strong vote of confidence," said David Dorheim, president and CEO of Neah Power Systems. "These new investors provide a strong affirmation of Neah Power's accomplishments, direction, and market potential."

For more information on fuel cells, click here.

August 23rd, 2004

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