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Neah Power Granted Another US Patent for Fuel Cell Electrode Structures

January 8, 2007

SEATTLE—(BUSINESS WIRE)—Neah Power Systems, Inc., a Nevada corporation (Pink Sheets:NPWS – News) announces that it was issued an additional U.S. patent, U.S. Patent No. 7,157,177 titled “Porous Fuel Cell Electrode Structures Having Conformal Electrically Conductive Layers Thereon.” This patent expands Neah’s Intellectual Property beyond silicon substrates in relation to its core electrode architecture. Any electrode material that possesses the desirable properties of porous silicon and promotes the desired chemical reaction when a catalyst is introduced are covered by the claims in this patent.

Neah has been leveraging processes used in the integrated circuit industry to deposit catalyst and other metal coatings onto porous silicon to fabricate fuel cell electrodes. In general, fuel cell electrodes need to be conductive to pass electricity and porous to expand the reaction area so as to improve power density. Some porous materials that are marginally conductive, such as porous ceramics, can be improved by coating them with conductive materials. Although Neah is using porous silicon, many of its coating processes can be used on other porous materials to enhance the conductivity. This latest patent compliments Neah’s existing five patents focused on electrode structures and signifies the Company’s leadership in capturing the electrical features it wants without being limited in scope to a silicon based electrode architecture.

Dan Rosen, Ph.D., Chairman of Neah Power Systems commented on the patent approval: “The claims covered by this patent show our continued commitment of enhancing the various material and design options of an electrode structure for our porous silicon-based fuel cell. Further, this patent expands key coverage on the basic aspects of our unique fuel cell technology.”

About Neah Power Systems

Neah Power Systems is a micro fuel cell development company using a patented, silicon-based design to provide long-lasting, efficient and safe power solutions for portable electronic devices, including notebook PCs and other power-hungry computer, entertainment, and communications products. As an emerging leader in fuel cell technology and design, Neah Power Systems believes that its products will allow users to extend the operating time of their devices multiple times beyond that of conventional batteries. Key investors include Alta Partners, Frazier Technology Ventures, Castile Ventures, WestAM and Intel Capital. Neah Power Systems is headquartered just outside of Seattle in Bothell, Washington. Further company information can be found at our Website www.neahpower.com and in the reports that we file with the Securities and Exchange Commission, which are accessible at www.sec.gov.

Statements in this press release that are not statements of historical or current fact constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties, and other unknown factors that could cause the actual results of the Company to be materially different from the historical results or from any future results expressed or implied by such forward-looking statements. In addition to statements which explicitly describe such risks and uncertainties, readers are urged to consider statements labeled with the terms “believes,” “belief,” “expects”, “intends”, “anticipates”, “will”, or “plans” to be uncertain and forward-looking. The forward-looking statements contained herein are also subject generally to other risks and uncertainties that are described from time to time in the Company’’s reports and registration statements filed with the Securities and Exchange Commission.

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