AFPW AlumiFuel Power Corporation (CE)

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"), today provided an update on its strategic marketing thrusts based on recently announced technology advancements and collaboration discussions with potential new path-to-market partners. These initiatives involve four important market segments: Portable Balloon Inflation Systems; portable power; H24U mini hydrogen generator; and Unmanned Undersea Vehicles.

Portable Balloon Inflation Systems (PBIS) -- $200 million market The recent announcement of the US Air Force Special Operations Command contract for the new PBIS-2000 to fill and launch 200g weather balloons has triggered new expressions of interest in purchasing API's unique PBIS products by other NATO military customers as well as meteorological customers. The PBIS-2000 technology, including ambient pressures, low temperatures, and simplified designs, will be incorporated into all future PBIS products, including the PBIS-1000 for 100g balloons. The cost of the traditional lift gas, helium, is up 15% just in the past year and supply is increasingly tight -- causing more weather balloon users to switch to hydrogen. Global meteorological users include: (1) Agencies such as NOAA and WMO that launch weather balloons in remote areas of the world to collect and disseminate vital weather and climatologic information; (2) Air Traffic Control agencies in developing nations that do not have a consistent and reliable source of hydrogen for lift gas; and (3) Disaster relief agencies in areas that have a hydrogen distribution network which has been cut off because of a natural disaster. This was the case in the Japanese nuclear disaster earlier this year.

Portable Power -- $3 billion market Recently announced technology developments in 100W portable power applications, in which API's AlumiFuel hydrogen generator-cartridges are used to power a fuel cell, have triggered a flurry of activities involving potential fuel cell partners. API is in the process of qualifying several candidates interested in exploring strategic collaboration arrangements. Moreover, API's new automated generator-cartridge unit is also ready to be used as a standalone system to fill metal hydride cylinders already in the field in many military and commercial applications.

H24U -- $3 million market Based on market surveys and discussions with many academicians and science apparatus distributors, API is convinced that this is a unfilled market waiting to be developed. API's mini-hydrogen generator, H24U, is an ideal product for high school and college science labs to demonstrate the generation and use of hydrogen. API's collaboration with a local high school science department is proceeding as planned, with the development of lesson plans and experiments based on the H24U unit. At the same time, API is now qualifying potential distribution partners to roll out the H24U and lesson plan package in a nationwide marketing and sales effort.

Unmanned Undersea Vehicles (UUVs) -- $1.2 billion market for UUV fuel API's unique technology combines hydrogen generation along with heat generation, with both sources providing unmatched energy density feeding fuel cells and turbines to power UUVs. Together with its UUV power plant partner, Ingenium Technologies, API is continuing to pursue US Navy program opportunities. API and Ingenium will be presenting the current state of development of their Integrated Hybrid Fuel Cell Power System for UUV applications this November at the Fuel Cell Seminar and Exposition in Orlando Florida. This is the premier annual fuel cell conference in the US.

API's President & CEO, Mr. David Cade, said, "Essentially API is in the process of introducing exciting new technologies and products into these target markets. This requires considerable education on the benefits of using hydrogen as a potent new alternative energy power source to replace existing technologies and products. We believe we have made significant progress in this regard, and are beginning to see real results in our quest to penetrate these large markets."

About AlumiFuel Power, Inc. API (www.alumifuelpowerinc.com), the Philadelphia, Pennsylvania-based wholly owned operating subsidiary of AlumiFuel Power Corporation, is an early production stage alternative energy company that generates hydrogen gas and steam/heat through the chemical reaction of aluminum, water, and proprietary additives. This technology is ideally suited for multiple 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; can replace costly, hard-to-handle and high pressure K-Cylinders; and provides fuel for flameless heater applications. Its hydrogen/heat output is also being designed and developed to drive fuel cell-based and turbine-based undersea propulsion systems and auxiliary power systems. 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.

About AlumiFuel Power Corporation AlumiFuel Power Corporation operates through its wholly owned operating subsidiary, AlumiFuel Power, Inc., a Philadelphia-based early production stage alternative energy company that generates hydrogen gas and heat for multiple applications requiring on-site, on-demand fuel sources.

Safe Harbor for Forward-looking Statements

This news release may contain forward-looking statements that are made pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. While these statements are made to convey to the public the company's progress, business opportunities and growth prospects, they are based on management's current beliefs and assumptions as to future events. However, since the company's operations and business prospects are always subject to risk and uncertainties, the forward-looking events and circumstances discussed in this news release might not occur, and actual results could differ materially from those described, anticipated or implied. For a more complete discussion of such risks and uncertainties, please refer to the company's filings with the Securities and Exchange Commission.

CONTACTS: Investor Relations: AlumiFuel Power, Inc. Thomas B. Olson Corporate Secretary 303-796-8940 Technical Information & Marketing: API Laboratories 3711 Market Street, Suite 950 Philadelphia, PA 19104 215-921-9203 Email Contact