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Neah Commences Testing of 16 Cell Stack Architecture

December 5, 2006

SEATTLE—(BUSINESS WIRE)—Neah Power Systems, Inc., a Nevada corporation (Pink Sheets:NPWS – News) is pleased to report that has started initial testing of its 16 cell stack architecture that is targeted for inclusion in Neah’s fuel cell prototype development program.

Paul Abramowitz, President and CEO of Neah Power Systems said, “This is an important step in our technical progress. The new 16 cell architecture will allow us to test the electrical and fluidic interfaces that will be used in our near term prototype development efforts. The stack is the key component to power generation in fuel cells and this effort will help define the characteristics that will best take advantage of our unique porous Silicon electrode architecture.”

In addition to taking advantage of its patented porous Silicon electrode architecture, Neah is also seeking to leverage the efficiencies of its “closed-loop fluid system” which circulates liquid streams of fuel, oxidant and electrolyte in an enclosed package.

Neah anticipates that by developing stacks with its unique porous Silicon electrode and closed-loop fluid system, it should be able to demonstrate fuel cells capable of delivering the high power densities required to support a commercially viable power delivery system with the potential to replace traditional batteries currently in use for both military and consumer 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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