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Ashkelon , Israel, September 22, 2005 Engineuity R&D Ltd has developed a unique technology for hydrogen production on board vehicles. The technology overcomes all obstacles presently associated with hydrogen. Concerns regarding safety, fuel distribution and storage are irrelevant since the hydrogen is produced onboard as it is consumed.

Using a light metal wire (such as: Aluminium, Magnesium), water and a special conversion unit, the company has succeeded to produce a continuous flow of hydrogen and steam under full pressure, temperature and power control.

The hydrogen and steam produced, power a modified internal combustion engine.

The production unit can also be used for producing hydrogen for fuel cells and other applications requiring hydrogen and/or steam.

This technology provides a solution for two major global problems:

Firstly, Security of fuel supply; caused by diminishing petroleum fuel resources and soaring increase in demand. Secondly - the severe problem of the ‘Greenhouse effect’.

The spent product from Engineuity’s process is a light metal oxide that is eventually separated and sent back to the factory for electrochemical recycling. There is therefore no dilapidation of metal resources and continuous fuel supply is guaranteed. In addition, Engineuity’s technology ensures that no CO2 will be released into the atmosphere.

As the technology has now been proven, Engineuity is presently working on the integration of its production unit with a modified engine. By the completion of the integration and construction of a prototype, the technology will be available. The modified engine can be produced in existing production lines, removing the need for investment in new infrastructures (the cost of which is estimated at billions of dollars) and, the wide production infrastructures of the light metals (Al, Mg) allows prompt access.

Refuelling a car based on this technology is remarkably simple. The vehicle will contain a mechanism for rolling the metal wire into a coil during the process of fuelling. The spent metal oxide, which was produced in the previous phase, is collected from the car by vacuum suction.

The performance of the engine will be identical to that of an existing petrol powered vehicle. The volume required for containing the metal wire is similar to the volume required for petrol; however its weight will be 3 times greater. These values are significantly preferred over those associated with other alternative fuel solutions. The cost of this new fuel will be comparable with petroleum fuels at present day prices.

Engineuity R&D (www.engineuity.co.il) is a start-up company operating under the auspices of Ashkelon Technological Industries in the framework of the Chief Scientist’s incubator program.

The entrepreneurs and company founders are: Prof. Amnon Yogev, recently retired from the prestigious Weizmann Institute of Science, after 40 years, where he, among other functions, led the Energy Research Center. Prof. Yogev held various positions in the defence services and was an active member of numerous EU energy related committees, planning the 6th Framework Program.

Colonel (Ret.) Elie Gamzon, Aeronautics and computers engineer, served 20 years as a development engineer in the Israeli Air Force, and held various positions in the defence services. During the 80's, Mr. Gamzon founded and managed Silver Arrow until it was acquired by Elbit Systems in 1997.

The technology was developed in cooperation with Alubin R&D Ltd., Opuntia led by Prof. Eran Sher and the Technion Institute of Technology.

Initial investment was provided by Ormat Industries Ltd. Engineuity is presently raising capital to fund the construction of an integrated engine prototype. In the future, the technology will be offered to the automobile industry, providing a solution to the petroleum fuel problem.