Los Alamos, NM, October 15, 2002 -Manhattan Scientifics, Inc. (MHTX) said today it has sold the intellectual property of its holographic data storage subsidiary to a company actively engaged in developing the ultra high-density data storage technology.

The patents and equipment assets of Tamarack Storage Devices Inc., a wholly owned subsidiary of Manhattan Scientifics, were sold for an undisclosed amount of cash and securities. The company said it would provide additional details in the near future.

Jack Harrod, chief operating officer of Manhattan Scientifics, said, "We believe the portfolio of 21 patents has the potential to play an important role in the future development of holographic memory. We have taken this step in order to focus our efforts on our fuel cell and e-Touch Software activities."

Manhattan Scientifics CEO Marvin Maslow said, "This transaction provides us with useful funding that will help see us through these difficult markets. We continue to make what we believe is useful progress in finding appropriate partnerships and alliances to commercialize our portfolio of disruptive technologies."

Manhattan Scientifics, Inc. is a company specializing in identification of and early stage investment in disruptive technologies, with the goal of commercialization and profit-creation for its shareholders. Copies of Manhattan Scientifics' press releases, current quotes, stock charts and other information for investors may be found on the websites www.mhtx.com, www.hawkassociates.com.

Manhattan Scientifics, Inc. is a technology development company working in the fields of alternative energy, and computer touch technology. The company's development laboratories are located in Los Alamos and Albuquerque, New Mexico and Passau, Germany. Its executive facility is located in NewYork City. Copies of Manhattan Scientifics' press releases, current quotes, stock charts and other information for investors may be found on the websites http://www.mhtx.com/ and http://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 fuel cells and other technologies, successfully commercializing the fuel cells 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.

Executive Contact:
Marvin Maslow, CEO
Manhattan Scientifics, Inc.
(212) 752-0505; (Mobile) (917) 923-3300
E-mail: maslow@ix.netcom.com

Jack Harrod, COO
Manhattan Scientifics, Inc.
(214) 675-8033
E-mail:harrod@airmail.com

Investor Relations Contact:
Frank Hawkins
Hawk Associates
(305) 852-2383
E-mail: info@hawkassociates.com