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Neah Power Annouces transition to Larger Silicon Electrodes for higher volumetric Energy Density

March 5, 2008

BOTHELL, Wash.-Neah Power Systems, Inc. (OTCBB:NPWS)a leading developer of fuel cells for military application and portable electronic devices, announced today that it has transitioned to the larger (43x43mm) electrodes (Figure 1), from its previously used 30x30mm electrodes (figure 2). These larger electrodes will better utilize the 6" and 8" Silicon wafers used to produce the electrodes. These developments were funded in large part through Neah Power's Department of Defense contract administered by the Office of Naval Research.

"In moving to a larger overall electrode structure, several advantages will be realized," said Dr. Art Homa, VP of Technology, and Chief Scientist. "First, the absolute amount of active area for power generation available is nominally 2.5X the previous electrode design, resulting in higher absolute power as well as significantly higher efficiency of area utilization. Second, the packaging infrastructure needed to support the fluidic requirements of the cell is significantly reduced on a total volume basis. Third, these increases in active area, in addition to other design elements relating to the new electrode size, are expected to result in a significantly higher overall amount of power on a volumetric basis, enabling industry-leading volumetric energy densities."

"This is an important step in our technical progress. The new 43mm electrode size development is exciting and further supports our continued efforts leveraging the benefits of our unique porous silicon architecture," said Dr. Chris D'Couto, President & CEO of Neah Power. "Our efforts to obtain greater power densities, reliability, scalability, and manufacturability are crucial to providing the most competitive power solution for the military and portable electronics market."

About Neah Power Systems

Neah Power Systems, Inc. is a leading developer of fuel cells for military applications, notebook computers and portable electronic devices. The company's patented, porous silicon-based design will provide long-lasting, efficient and safe power solutions. As an emerging leader in fuel cell technology, Neah Power's products will allow users to extend the operating time of 10 to 100 watt devices multiple times beyond that of conventional batteries. Further company information can be found at our website: www.neahpower.com.

Forward Looking Statements

Except for statements of historical fact, the matters discussed in this press release are forward looking and made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect numerous assumptions and involve a variety of risks and uncertainties, many of which are beyond the company's control that may cause actual results to differ materially from stated expectations. These risk factors include, among others, limited operating history, research and prototype delays, difficulties in developing and commercializing new technologies, and additional risk factors as discussed in the reports filed by the company with the Securities and Exchange Commission, which are available on its website at: http://www.sec.gov.

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