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NEW Company Press Release.

AlumiFuel Power, Inc.'s PBIS-1000 Portable Hydrogen Generator is Now Commercially Available.

Early production stage hydrogen generation company AlumiFuel Power, Inc. (“API”), the Philadelphia, Pennsylvania-based wholly owned operating subsidiary of AlumiFuel Power Corporation (OTCBB: AFPW), (the “Company”), announced today that its Portable Balloon Inflation System-1000 (PBIS-1000) hydrogen generator is now available for purchase by military and meteorological service customers worldwide. Lift gas unit sales will be through Kaymont Consolidated, Inc. of Long Island, NY, the world’s largest weather balloon distributor, and API’s partner for lift gas applications.

API’s PBIS-1000, manufactured to API’s specifications by APEX Piping Systems, Inc., relies on the robust chemical reaction among aluminum, water, and proprietary additives. Operation of the generator is simple: two 32-oz. “aluminum can” cartridges, containing aluminum powder and proprietary additives, are inserted into two reactor vessels in the unit. Water is poured into the unit’s water tank, and a hand pump is then used to inject water into the cartridges, generating 1,000 liters of hydrogen in 20 minutes.

This fourth generation PBIS-1000 was designed and developed for lift gas operations based on feedback from an unspecified military customer following live demonstrations of earlier generations of the unit over an 18-month period. The PBIS-1000 is presently being displayed at the Kaymont booth at the annual American Meteorological Society Meeting in Atlanta.

The production unit has a simpler design with fewer components, and is lighter, more compact, more ruggedized for military applications, more user-friendly, and more cost-effective. Using a higher grade stainless steel construction with better corrosion properties and durable fluorocarbon rubber for all seals, the upgraded unit can better withstand required pressures and temperatures over its long expected lifetime. The reactor and water tanks, as well as all plumbing lines and connectors, have been optimized for weight, simplicity, and cost, and are stamped and certified with the ASME code – a standard requirement for commercial pressure vessels. The unit meets Mil Spec requirements for vibration, environmental and drop tests, and is housed in a molded polyethylene carrying case used regularly by the military.
For balloon filling applications, the unit replaces other lift gas sources such as increasingly scarce helium and hydrogen generated and delivered by other means such as K-Cylinders, and expensive steam reforming and electrolysis processes. The PBIS-1000 is ideal for remote or other locations where no external power is available and delivery of other hydrogen sources is difficult or impractical. The unit is priced at $15,000, with each cartridge priced at $20. The PBIS-1000 is sized to fill and launch weather and special purpose balloons that are 100g or larger (5 feet in diameter and up). A smaller unit, the PBIS-500, which uses one cartridge instead of two, is also available for pilot balloon applications (30g or 18 inches in diameter). The PBIS-500 unit is priced at $10,000, and the cans at $15.

While API’s hydrogen generator was initially designed for the remote inflation of weather balloons, the quality of hydrogen the reactor generates is easily adaptable to fuel cells and many other systems requiring remote/portable hydrogen. Currently, large, heavy and hard-to-handle steel “K-Cylinders” under very high pressures are used to transport and deliver hydrogen to customers. The PBIS-1000 unit instead relies on small unpressurized cartridges of aluminum powder and any available water source. This greatly reduces the cost and danger of transporting hydrogen, and makes hydrogen available to previously inaccessible locations.

Mr. David Cade, API’s President and Chief Executive Officer said: “This important milestone is the culmination of two years of intense engineering development by our technical staff. The PBIS-1000 is a one-of-a-kind product in the global hydrogen industry, and will have a far reaching impact on user’s applications requiring instant, cost-effective hydrogen for lift gas operations and small-scale remote and portable power.”

Parties interested in placing purchase orders should contact Mr. Paul Fetkowitz, Vice President of Kaymont Consolidated, at 1-800-644-6459. Parties interested in learning more about the PBIS-1000 technology, engineering and operations, should contact Mr. Sean McIntosh, API’s Director of Engineering, at 215-921-9203.

About Kaymont Consolidated Industries, Inc.

Kaymont Consolidated Industries, Inc. . founded in 1978, has been a provider of the highest quality meteorological balloons to the National Weather Service, U.S. military, and U.S. test ranges. Kaymont's vast experience and knowledge in the worldwide meteorological market make it ideally suited for marketing API’s technology to both military and civilian lift gas customers around the world. Kaymont Consolidated is also a leading global supplier of meteorological measuring devices used in military applications, and of humidity calibration chambers for use in various industries.

About Apex Piping Systems

Apex Piping Systems, Inc. is a world class fabricator of piping systems, skid modules, specialty fabrications and reactor vessels serving the Petro-Chemical, Air Separation, Nuclear, Hydrogen Fuel Cell, Gas Turbine, Bio-Fuel and other related industries. Their headquarters is located in Newport, Delaware, conveniently located off of Interstate 95, with close access to barge and rail transport. Their main engineering and manufacturing facility spans over 60,000 square feet, and features a world class 35,000-square-foot ASME code process pipe and pressure vessel fabrication shop. The company holds ASME “U”, “PP”, “S”, and NBIC “R” code stamp authorizations, and is certified by TUV SUD America to the European Pressure Equipment Directive (PED) and ISO ISO 9001:2000.
About AlumiFuel Power, Inc. (API)

API is an early production stage alternative energy company that generates hydrogen gas and superheated steam through the chemical reaction of aluminum, water, and proprietary additives. This technology is ideally suited for multiple niche applications requiring on-site, on-demand fuel sources, serving National Security and commercial customers. API’s hydrogen feeds fuel cells for portable and back-up power, fills inflatable devices such as weather balloons, and can replace costly, hard-to-handle and high pressure K-Cylinders. Its hydrogen/heat output is also being designed and developed to drive turbine-based underwater propulsion systems and auxiliary power systems, and as the fuel for flameless heaters/warmers. API has significant differentiators in performance, adaptability, safety and cost-effectiveness in its target market applications, with no external power required and no toxic chemicals or by-products. For more news and information on API, please visit .

About AlumiFuel Power Corporation

AlumiFuel Power Corporation acquired in May 2009 its wholly owned operating subsidiary AlumiFuel Power, Inc., a Philadelphia-based early production stage alternative energy company that generates hydrogen gas and steam for multiple niche applications requiring on-site, on-demand fuel sources. The Company also has been conducting biotechnology research, development and potential commercialization of technologies and products for new cancer therapeutic agents and cancer fighting drugs called targeted therapies.

AlumiFuel Power CorporationInvestor Relations:Thomas B. Olson, 303-796-8940Corporate SecretaryorPublic Relations:The Investor Relations Group (IRG)Mike Graff, 212-825-3210orTechnical Information & Marketing:API Laboratories, 215-921-9203

AlumiFuel Power, Inc. Updates Its Commercialization and Marketing Plans for 2010.

Early production stage hydrogen generation company AlumiFuel Power, Inc. (“API”), the Philadelphia, Pennsylvania-based wholly owned operating subsidiary of AlumiFuel Power Corporation (OTCBB: AFPW), (the “Company”), announced today that it is Positioned to aggressively move into the commercialization stage in early 2010, as one product is now entering the marketplace and another product is ready for market entry.

The PBIS-1000 hydrogen generator is now in production, and delivery of these operational units to customers is expected to begin shortly. (See API news release of December 30, 2009). This unit uses two 32oz.cartridges filled with API’s proprietary AlumiFuel powder mix to generate 1,000 liters of hydrogen as lift gas to launch a five-foot weather balloon in 20 minutes. The PBIS-1000 is a unique product, not available from any other source in the world; it enables cost-effective balloon launching from any remote or inaccessible location without having to rely on expensive electrolysis or steam reforming technologies, or on hard-to-handle and logistically difficult K-Cylinders. In fact, 10 of the 32oz cartridges generate 5,000 liters of hydrogen – the same as a K-Cylinder, and at far lower pressures.

The weather balloon market is pegged at $150-$200 million per year, and encompasses military as well as civil government meteorological users worldwide. API and its partner, Kaymont Consolidated of Long Island, NY – the world’s largest distributor of weather balloons – have demonstrated pre-production versions of the PBIS-1000 to customers, and the production unit reflects considerable customer feedback. Based on customer reaction, Kaymont and API expect to begin capturing significant market share in 2010, and believe the PBIS-1000 can become the field standard and product of choice. After purchasing PBIS-1000 hydrogen generators, customers will continue to purchase replacement cartridges sufficient for each generator to launch 500-1,000 balloons each year (1,000-2,000 cartridges). This is analogous to the razor/razor blade market dynamic.

Of equal importance to the weather balloon market, the PBIS-1000 can easily be tailored to feed fuel cells to generate electricity for back-up, stand-by, auxiliary and portable power. API is in discussions with several major fuel cell companies regarding specific applications. Small, portable fuel cell applications potentially represent an $8 billion annual market as fuel cells replace older technologies such as gensets and batteries. It should be noted that hydrogen provides 4-5 times the energy density (and hence operating time) of lithium batteries.
API has also completed development of a new generation of flameless heaters – which can heat rations, or fuel personal warmers. (See API news release of December 21, 2009). The most highly visible application in this genre is the Flamelss Ration Heaters (FRH) which heats MREs (Meals-Ready-to Eat) in about 20 minutes. The US Department of Defense (DoD) spends about $36 million annually on these heaters for MREs. Worldwide, this FRH market is about $70 million for military and commercial applications. The incumbent FRH provider to the DoD operates on a sole source basis using a magnesium powder-based mix. After considerable comparative testing in API’s laboratory, it is apparent that API’s AlumiFuel powder-based mix is superior in terms of heat generated per gram and time of heating, and is significantly cheaper. API now has a product ready for this market and is in a dialogue with the cognizant DoD offices to determine the appropriate path for market entry. API also is exploring various options for path-to-market partners to address the larger global market.
In addition to these market-ready applications, API and a major aerospace partner are continuing to pursue a longer-range, but highly important mission-critical undersea application for the U.S. Navy. Together with a major subsidiary of the world’s second largest aerospace & defense company (a Fortune-50 firm), API is in discussions with U.S. Navy R&D activities regarding appropriate programs to develop a prototype Unmanned Underwater Vehicle (UUV) propulsion system using API’s AlumiFuel-water reaction as the source of superheated steam to drive the aerospace firm’s turbines. Again, application of these combined technologies would be unique, and would replace very costly lithium-based batteries while providing 4-5 times the mission duration. The two companies are optimistic that this effort will lead to a new-start R&D program in 2010; of course, once such a new propulsion system is ready for the marketplace, actual system procurement would likely be measured in the billions of dollars.

API’s President and Chief Executive Officer, Mr. David Cade, said, “It is very gratifying to note that with our strong engineering development focus, we are at the forefront of commercializing this aluminum-water hydrogen generating technology, which in many instances is still a laboratory curiosity. We have successfully harnessed this technology for on-site, on-demand, real world hydrogen applications, embodied in real products for real customers. I am extremely proud of our superb technical team which has made this happen, and we are now looking forward to an unbroken string of successes in our target markets.”