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Neah To Extend Patented Fuel Cell Technology To Military Sensor Market

June 16, 2006

Seattle, WA - June 16, 2006 - Neah Power Systems, Inc., a Nevada corporation (Pink Sheets: NPWS.PK) today announced its intent to extend its patented fuel cell technology to power sensors used in military and homeland security applications.

Neah Power is developing a unique micro fuel cell system for portable electronics and military applications. Based on porous silicon electrodes, Neah�s patented and proprietary technology using liquid electrolytes will be configured in a �closed-loop� system that does not require air from the outside environment. This is a requirement for field-deployed sensors and sensor networks of many types that are used by the military and homeland security applications where the fuel cells are not in contact with the air and power is not otherwise available.

"Most fuel cells require air to react with the methanol fuel to produce electricity," said Dan Rosen, Ph.D., Chairman of Neah Power Systems. "Neah uses liquid electrolytes that enable them to be configured to either use air or run as a closed system in applications where you don't want your sensor and its fuel cell to be detected. Many sensors are buried or run under water. Neah anticipates that this extension of its fuel cell design will meet the needs for many such applications."

According to recent press, military sensors are becoming increasingly important for military operations; they can be placed in strategic locations and networked together to detect, record, and send intelligent information to a central location. Applications can range from surveillance and monitoring of U.S. borders in remote locations to deploying sensors in enemy territory for combat operations. In either event, changing the batteries that power these sensors on a regular basis becomes a daunting task for remote locations and if at all possible, dangerous when located behind enemy lines.

In addition to the previously announced $1.75 million project with the Office of Naval Research, Neah intends to seek additional funding from the military to develop and adapt the closed loop system for military applications.

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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