Los Alamos, New Mexico, May 8, 2000 - Manhattan Scientifics, Inc (MHTX) announced today that it has received a contract from the U.S. Army to design and build a fuel cell power source to be used in an Army test program. The program is to evaluate the feasibility of battery replacement in certain types of portable communication equipment now in use by the Army. The fuel cell will be based on Manhattan Scientifics' unique proprietary mid range power technology (2 watts to 3 kilowatts) developed by the company's NovArs unit in Passau, Germany. If the Army elects to order production quantities of the new fuel cell, the company will decide to either supply the new power source itself through contract manufacturing or to license to a manufacturing partner.

The fuel cell's unique design uses advanced composite materials and sealing technology to minimize size and weight. This cell is potentially ideal as a power source for portable electronic equipment. The system is a hydrogen/air system using hydrogen as fuel. It will supply 15 watts of power with up to 30 watts under peak load conditions at ambient pressure with minimum ancillary equipment. The work will be carried out at the NovArs facility in Bavaria with delivery in three months. The company has applied for world patent protection of its technology.

Dr. Arthur Koschany, founder of NovArs, said, "We are pleased that the U.S. Army has chosen our technology for evaluation. It utilizes hydrogen and air as fuel and combines them in the cell to obtain electric power and water vapor. It is a completely pollution free process. With our unique material and sealing techniques, we feel we are leading our industry in power generation for a given weight. From a technical point of view this is a very exciting project that will challenge our abilities in widespread subjects from electrochemistry to electronics. But, because of the work we have already completed, we are convinced we will deliver a prototype having performance data even beyond the Army's requirements."

When completed, the test program will demonstrate Manhattan Scientifics' ability to produce an efficient new power source for commercial applications requiring compact and light weight features. These include: motorized bicycles, scooters, wheelchairs, and golf carts; portable appliances such as cordless power tools and kitchen utensils; and lightweight portable power packs for remote use. Because of these emerging opportunities, the company has entered into discussions and technical reviews with several large corporations regarding possible use of our new energy device in their applications. The company plans to demonstrate a fuel cell powered bicycle, utilizing a 650-watt version of this technology, later this month.

The company is also exploring alternative fuels that would enable its fuel cells to power portable electronics such as laptop computers, PDA's, cellular phones, toys and games and similar devices.

NovArs GmbH is a two-year-old German company founded to develop advanced fuel cells, materials, and concepts. It was started in 1998 by Dr. Koschany, a scientist specializing in the development of large fuel cell systems for automotive applications.

Jack Harrod, chief operating officer of Manhattan Scientifics, said, "We would like to thank the U.S. Army for this first opportunity to demonstrate our technology in a customer evaluation program. We are excited about the potential value inherent in our high power, lightweight, compact design. We believe it can significantly reduce the physical burden on the soldier and the supporting logistics system. This is achieved by replacing the weight and bulk of huge numbers of batteries and charger equipment with compact fuel cells. NovArs' efforts are complementary with work on our MicroFuel Cell ä (microwatts to two watts) activity underway in our Los Alamos laboratory. This technology utilizes methanol as a fuel source. We think it is possible to apply some of the methanol fuel cell features to the NovArs design opening up additional commercial applications, particularly in portable electronics."

Marvin Maslow, CEO, said, "This is the initial validation of our technology-incubator strategy and a significant event for our shareholders. Our NovArs team in Germany has taken this particular concept from idea to commercial reality in less than one year. We are very proud of them."

Manhattan Scientifics, Inc. is developing and commercializing proprietary technologies in the advancement of consumer and commercial electronics including MicroFuel Cell technology and holographic media for data storage and Internet-based image management. The Company is also developing nanoporous polymer filtering technologies. Manhattan Scientifics' research headquarters are located in Los Alamos, NM. Executive offices are in New York City. Copies of Manhattan Scientifics press releases, current quotes, stock charts and other information for investors may be found on the websites www.mhtx.com and http://www.hawkassociates.com. For further information contact Manhattan Scientifics CEO Marvin Maslow (212) 752-0505 or Investor Relations; Frank Hawkins (305)852-2383. Manhattan Scientifics' business address is 641 Fifth Avenue, New York, N.Y. 10022.

The foregoing press release contains forward-looking statements, including statements regarding the company's expectation of its future business. These forward-looking statements are based largely on the company's expectations and are subject to a number of risks and uncertainties, certain of which are beyond the company's control. Actual results could differ materially from these forward-looking statements as a result of a variety of factors. These include but are not limited to, successfully completing the research and development with respect to the MicroFuel Cells and other technologies, successfully commercializing the fuel cells and holographic storage devices for mass production, successfully protecting the company's patents, and effective significant industry competition from various entities whose capabilities far exceeds the company's. In light of these risks and uncertainties there can be no assurances that the forward-looking statements in this press release will in fact transpire or prove to be accurate.