Nanotechnology Now - Press Release: AlumiFuel Power, Inc. Developing Flameless Ration Heater

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Abstract:
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 has conducted successful testing of a new generation Flameless Ration Heater (FRH) prototype using its AlumiFuel powder mix, which is customized to serve a variety of applications.

AlumiFuel Power, Inc. Developing Flameless Ration Heater

Centennial, CO | Posted on December 22nd, 2009

API's FRH system is based on the reaction of water with aluminum powder and proprietary additives to produce heat. This fuel mixture has been customized to fit into standard FRH packaging and uses similar operational procedures. First phase internal testing has confirmed that API's technology is less expensive, and produces more heat more quickly than existing FRH products, which use magnesium powder-based mixtures. Standard FRH packaging includes a polyester pouch containing the powder, which is activated by adding a small quantity of water to the packet, and then placing it in a tilted position in the box containing the food ration.

The FRH has numerous military and commercial food product applications in the U.S. and virtually all other developed countries. The most well-known such product is the U.S. military's Meal-Ready-to-Eat (MRE) ration. Over the current five year period, the U.S. Department of Defense will spend up to $950 million on these MREs, purchasing some 42 million units per year. The FRHs are purchased by the MRE prime contractors (assemblers) under a subcontract, at a cost of approximately $36 million per year. In addition to generating more heat for less cost in the same packaging, this new technology conforms perfectly to current MRE performance requirements, and operates in an identical manner to current MRE Flameless Ration Heaters.

The nanoscale materials characterization performed at Drexel's Nanotechnology Institute has been instrumental in API's customization of this fuel mixture for FRH applications. (See API news release of July 16, 2009 for more information on API's membership in the Drexel Nanotechnology Consortium).

API's President and Chief Executive Officer, Mr. David Cade, said: "We are excited about our newest development and its immense market potential. We will be working with key contacts in industry and government to commercialize this product on a mass scale. In addition, we are already developing a more advanced second generation prototype that will make this product even more safe and affordable, which would further increase its market share potential."

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.

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About AlumiFuel Power
API (www.alumifuelpowerinc.com) 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 www.irgnews.com/coi/AFPW.

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.

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Contacts:
AlumiFuel Power Corporation
Investor Relations:
Thomas B. Olson
303-796-8940
Corporate Secretary

Public Relations:
The Investor Relations Group (IRG)
Mike Graff
212-825-3210

Technical Information & Marketing:
API Laboratories
215-921-9203