FOR IMMEDIATE RELEASE
Technical Contact: Dr. Arthur Koschany, email: Novars@t-online.de

Executive Contacts: Marvin Maslow, US (212) 752-0505, (917) 923-3300 mobile, email: maslow@ix.netcom.com
Jack Harrod, (505) 662-0660, email: harrod@airmail.net

IR Contact: Frank Hawkins, Julie Marshall, Hawk Associates, Inc., (305) 852-2383, email: info@hawkassociates.com

New York City, January 24, 2001 - Manhattan Scientifics, Inc. (MHTX) announced today that it has entered into a joint agreement with Electrolux LLC and Lunar Design, Inc. to develop an evaluation prototype of a fuel cell powered vacuum cleaner for the home.

Manhattan Scientifics is to design and build the prototype fuel cell to power a unique portable vacuum cleaner. This advanced home appliance is intended to free the user from electric cords and A/C wall plugs while providing full power cleaning performance. The unit's light weight and low noise coupled with total freedom of movement throughout the home or business are potentially strong distinctive features in the market share battle for high-end vacuum cleaners.

The company announced last month that it has entered into an agreement with Aprilia, S.p.A., one of Europe's largest manufacturers of motor scooters and motorcycles, to develop a fuel cell powered concept bicycle. Aprilia unveiled the bicycle, a version of Manhattan Scientifics' Hydrocycle™ bicycle, in December at the Bologna Motor Show in Italy.

The power system for Electrolux will use Manhattan Scientifics' mid range fuel technology developed by its partner company, NovArs GmbH, located near Passau, Germany. The fuel cell's unique design uses advanced composite materials and sealing technology to minimize size and weight making it ideal as a power source for portable equipment. The system is a hydrogen/air system using hydrogen as fuel. It is anticipated that it will supply 1000 watts of power at ambient pressure with minimum ancillary equipment.

The prototype is being developed on an accelerated timetable and it is anticipated that significant weight and size reductions will be incorporated into subsequent prototypes. The power system consists of two existing fuel cell stacks providing over one kilowatt of power, a hydrogen storage vessel and an electronic control board. For demonstration, the system is anticipated to produce one - two hours of operating time depending on the size of the fuel vessel used and will weigh approximately 10 pounds. The fuel cell driven power system is scheduled to be delivered to Lunar in mid January for final integration into their vacuum cleaner prototype.

The hydrogen fuel is stored in a lightweight carbon fiber reinforced pressure vessel. This fuel supply can be refilled within seconds with a replacement tank via a quick connect/disconnect feature. Electrolux can use its worldwide in-the-home customer service network to deliver refilled hydrogen bottles to customers. Disconnect and replacement will be similar to bottled propane and butane replacement currently used for barbeque grills and heaters. The Electrolux units will be significantly smaller and lighter in weight.

Joe Urso, chairman and CEO of Electrolux, said, "This could be the beginning of a major evolution in new portable power applications for household appliances. The Manhattan Scientifics fuel cell gives us a chance to offer our customers an unprecedented degree of freedom and ease of use. It also, once again, establishes our company as a leader in useful innovation."

Marvin Maslow, CEO of Manhattan Scientifics, said, "We are proud to be working with Electrolux, an icon in homes around North America. The Manhattan Scientifics' fuel cell provides them with an opportunity to be the first to offer their customers a cord free major household electronic appliance. This is our second announcement since December of an agreement with a major company to jointly produce a fuel cell powered consumer evaluation prototype. This underscores the progress we are making toward commercializing this revolutionary new technology."

Electrolux LLC is a North American company focused on floor care products. According to Electrolux, more than 55 million Electrolux Group products have been sold in homes in North America over its illustrious history.

Lunar Design, with offices in Palo Alto and San Francisco, CA, is one of Silicon Valley's best known product design and development firms. Lunar Design has created designs for many top selling products including HP's Pavilion Home Computers, the Oral B Crossaction toothbrush and versions of Motorola's StarTac cellular telephone. The firm has also been included in UDSA/Business Week's annual top ten award winning firms for the past eight years.

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. Arthur Koschany, a scientist with six years experience in the development of large fuel cell systems for automotive applications. Manhattan Scientifics acquired both current and future global intellectual property rights to NovArs' unique technology in 1999. Manhattan Scientifics is providing R&D funding to NovArs to further develop its technologies.

Manhattan Scientifics, Inc. is a development company focused on various technologies including alternative energy, holographic data storage, water and gas filtration and computer and Internet enhancements. The company's development laboratories are located in Los Alamos and Albuquerque, NM and Passau, Germany. Its executive office is in New York City at 641 Fifth Avenue, Suite 36F, New York, 10022. 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 www.hawkassociates.com.

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 micro fuel 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. NovArs GmbH, ERDI and Novint Technologies, Inc. are independent contractors to Manhattan Scientifics, Inc., which acquired and owns certain intellectual property of these companies. 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. Electrolux LLC is not affiliated with and should be distinguished with Electrolux AB of Sweden.