Los Alamos, NM, August 10, 1999 - In a move that significantly expands the scope and speed of its development efforts, Manhattan Scientifics, Inc. (OTC BB: MHTX) today announced that it has acquired the intellectual property, exclusive worldwide commercial development rights, and pending patents to the mid-power-range fuel cell technology of NovArs Gessellschaft fuer neue Technologien, GmbH, a private company based in Passau, Germany.

Terms of the agreement were not disclosed. The company will fund a research and development contract for NovArs, scheduled to begin September 5, 1999 by agreement with its principal owner, physicist Dr. Arthur Koschany. This includes construction of a next-stage-working prototype of the technology that will be efficient, easy to handle, and appropriate for mass production and worldwide distribution. Prototypes are scheduled for completion in the spring of 2000.

The NovArs technology and prototype was demonstrated at the Small Fuel Cell Conference held in Lucerne, Switzerland in June 1999. The NovArs technology is focused on producing a lighter weight, small stack fuel cell compared to conventional stack fuel cells. It is powered by hydrogen that operates under ambient conditions and produces power output ranging from 3 to 3,000 watts (3 KW). This power level is ideal for high current, low voltage applications such as laptop computers, portable electronics, cordless power tools, wheel chairs, golf carts, electric bicycles, and remote site locations.

As the technology evolves, it may also power higher wattage applications - NovArs is currently under contract with a major German industrial firm to work on a stationary fuel cell in the 2 to 3 KW range, which could potentially power a complete home energy supply system.

The current fuel cell development work at the Manhattan Scientifics laboratories in Los Alamos, NM, under the direction of Robert Hockaday, its Chief Fuel Cell Scientist, is focused on non-stacked flat fuel cell configurations, powered by methanol. This technology is ideal for low current, high voltage uses that require outputs below one watt of power, such as cellular telephones, pagers and other microelectronics.

Manhattan Scientifics successfully demonstrated a pre-prototype of its MicroFuel Cell technology last December by completing a fuel-cell-driven cellular telephone call. Work is currently underway to build an actual size prototype of a cellular phone powered by fuel cells, scheduled to be unveiled this fall.

Marvin Maslow, Chief Executive Officer of Manhattan Scientifics, Inc., stated, "we believe there is tremendous potential offered by the parallel pursuit of both promising fuel cell devices, as well as the synergies we believe will occur as our two fuel cell development teams work together and share ideas.

"This is a significant expansion of our energy opportunity, targeting the next power level -- a high powered fuel energy system, powered by methanol," he added.

According to Maslow, the driving force behind the agreement with NovArs was Jack Harrod, a 30-year veteran of Texas Instruments, Inc. (NYSE: TXN), who was recruited in 1998 as Manhattan Scientifics Chief Operating Officer to identify and commercialize promising technologies, similar to his successful history at Texas Instruments.

"Our NovArs team is pleased to join the Manhattan Scientifics family of scientists, engineers and business people," stated Dr. Koschany. "We recognized a great many opportunities to apply innovative fuel cell technology to the portable energy business, and we look forward to combining our skills with Manhattan Scientifics to achieve our mutual goal." NovArs has filed four patents to protect its mid-power-range fuel cell inventions.

"I am eager to begin working with Dr. Koschany and his talented scientific team to produce innovative fuel cell systems," said Robert Hockaday, the Chief Fuel Cell Scientist at Manhattan Scientifics. "He has shown real skill, energy and intelligence in pursuing his discoveries."

Manhattan Scientifics, Inc. develops and commercializes proprietary technologies to advance consumer and commercial electronics. These include MicroFuel Cell technology for portable electronic devices, holographic media for data storage, and Internet-based image management systems. Its research headquarters are in Los Alamos, New Mexico, and its business offices are located in New York City. Copies of Manhattan Scientifics press releases, current quotes, stock charts and other information for investors may be found on the Web sites www.mhtx.com and www.hawkassociates.com. For further information, contact Manhattan Scientifics CEO Marvin Maslow (917) 923-3300. The business address of Manhattan Scientifics, Inc. is 641 5th Avenue, New York, N.Y. 10022; (212) 752-0505/ Fax (212) 752-0077.