Los Alamos, NM September 1, 1999 – To accelerate development of its data storage research capabilities, Manhattan Scientifics, Inc. (OTC BB: MHTX) announced today that Los Alamos National Laboratory (LANL) scientist Dr. Robert E. Hermes has joined the organization as Senior Staff Scientist, specializing in polymer-related technologies under development. Hermes will be taking an entrepreneurial leave of absence from his Technical Staff Member position at LANL.

With his appointment, effective today, Hermes will be employed by Manhattan Scientifics, Inc. (www.mhtx.com), a technology incubator with laboratories based here, and business offices in New York City. He has worked at LANL for over 20 years and holds a Ph.D. in Polymer Science from the University of Southern Mississippi.

"All of us at Manhattan Scientifics welcome Robb Hermes aboard. We believe he will become a significant asset to our company," said Marvin Maslow, Chief Executive Officer, Manhattan Scientifics, Inc. "He brings years of experience and knowledge in polymer chemistry, an area in which we are now focusing."

"Manhattan Scientifics is a rising star here in New Mexico, the new Silicon Desert," said Hermes. "I’m very happy at the prospect of assisting the MHTX team to commercialize technologies, and of bringing product to market."

One of those technologies is HoloStor, a holographic data storage technology that could provide up to 1,000 times the storage densities of conventional magnetic surface recording. Manhattan Scientifics envisions potential applications for holographic storage that includes 50 gigabyte (Gb) "floppy" disks, with capacity equal to 35,000 times that of a conventional floppy disk. According to Maslow, such a device, when fully developed and mass-produced, might cost the consumer only $2.00. Such massive storage capabilities are possible because data are stored as three-dimensional light patterns, on the two-dimensional surface of the holographic recording medium. The theoretical limits for the storage density of this technique is measured in Terabits (millions of bits) per cubic centimeter.

Most recently, Hermes was recognized in 1999 by R&D Magazine with its R&D-100 award for his work on Instalarm, cited as one of the year’s 100 most technologically significant new products. Instalarm is a polymer-based alarm system for clothing used in hazardous environments.

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.