Medis Technologies Chairman Provides Updates of Sales and Production Programs for Medis 24/7 Power Pack

like the fuel production and electrode framing lines. I recently reviewed the status of all of this development with the CEO of Ismeca and Mr. Finkelshtain. The timetable they have presented calls for having 40% of the line completed next week, 90% of the line completed by the end of November, when the dry run will also begin; and having the line completed and ready for validation by the end of 2006. On this schedule, validation of the line will begin in January of 2007. Validation and training of Selestica's personnel is expected to be completed in the second half of March 2007. At that point, we have two options. If there is a compelling reason, for example an immediate customer need, that line could go into operation to produce about 300,000 to 500,000 Power Packs during the next month. A more likely scenario is that the line will be disassembled (estimate one week) and transported by ship (estimate three weeks) to Celestica's facility in Ireland where the line will be reassembled and retested by Celestica and then put into operation. That process should allow the line to go on-stream in May 2007.

During this period, we will continue to operate our semi-automated line in Israel capable of producing 30,000 Power Packs per month. Although the cost per Power Pack on that line is higher, it may lend itself to certain customers who are willing to pay more for immediate availability or special orders.

More Powerful Fuel Cells for Laptop Computers and Stand-by Power for Small Offices and Homes

As noted above, our October 5th press release discussed the presentation by Mr. Finkelshtain, together with Mr. Weiss, of the programs for developing refuelable cartridge fuel cells for laptop computers and one to two kilowatt refuelable fuel cells for standby power for small offices and homes. These programs offer valuable opportunities for our Company to expand its capabilities to address areas where the need and demand for efficient power are pressing. For years, laptop computer OEMs have been looking for a solution to power requirements that is small, attractively priced and does not create significant heat. As for the one to two kilowatt product, that could be an attractive product for China and India as well as countries in Africa and many other parts of the world which sorely need an efficient and inexpensive power solution for their citizenry. And, of course, standby power for homes and offices in more affluent countries, like ours, is clearly growing with the increasing pressure on electrical grids to keep up with power requirements.

I hope you share with me the excitement of our Company's progress as we move forward to placing our 24/7 Power Pack on the market and start to develop future generations of fuel cell products based on our platform technology.

Sincerely, Robert K. Lifton Chairman & CEO

Medis Technologies' primary focus is on direct liquid fuel cell technology. Its business strategy is to sell its products to end users through retail outlets, service providers and to the military and other markets. Medis has

also developed the CellScan with many potential applications relating to disease diagnostics and chemo sensitivity. Additionally, Medis' product pipeline includes other technologies, in varying stages of development.

This press release may contain forward-looking statements, which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. In some cases you can identify those so-called "forward-looking statements" by words such as "may," "will," "should," "expects," "plans," "targets," "believes," "anticipates," "estimates," "predicts," "potential," or "continue" or the negative of those words and other comparable words. These forward-looking statements are subject to risks and uncertainties, product tests, commercialization risks, availability of financing and results of financing efforts that could cause actual results to differ materially from historical results or those anticipated. Further information regarding these and other risks is described from time to time in the Company's filings with the SEC. We assume no obligation to update or alter our forward-looking statements made in this release or in any periodic report filed by us under the Securities Exchange Act of 1934 or any other document, whether as a result of new information, future events or otherwise, except as otherwise required by applicable federal securities laws.

This press release is available on Medis' web site at www.medistechnologies.com.

CONTACT: Medis Technologies Ltd. Robert K. Lifton Chairman & CEO (212) 935-8484

INVESTOR RELATIONS COUNSEL: The Equity Group Inc. Adam Prior (212) 836-9606 Devin Sullivan (212) 836-9608

SOURCE:  Medis Technologies Ltd

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