MEDIS TECHNOLOGIES ANNOUNCES FUEL CELL ADVANCE FOR FIRST COMMERCIAL PRODUCT

11/20/2002

NEW YORK - November 20, 2002 - Medis Technologies Ltd. (NASDAQ: MDTL) announced today that it has achieved the technical level in its fuel cell performance to provide continuous power for its first planned commercial product - a Power Pack to provide uninterrupted power to users of cell phones, PDA’s and certain hand-held electronic devices. The fuel cell demonstrated sufficient power to enable a laboratory tested Power Pack unit to operate the phone while at the same time fully charging a totally discharged battery. Each refueling of the Power Pack is planned to provide the user with the equivalent of six to nine hours of talk time or over two charges of the battery depending on the pattern of use. The size of the Power Pack for the cell phone is planned to be about two-thirds the size and one-half the weight of a cell phone and can be carried by the consumer either attached to the back of the phone or separately in a pocket, briefcase or handbag.

Having attained the fuel cell’s power performance level required for the Power Pack for these products, Medis must now complete engineering of a finished product for the commercial market. This requires completing development of the Power Pack cartridge system which dispenses the fuel and the liquid electrolyte, completing the commercial design of the DC to DC converter, developing the ability to use the product in any orientation and engineering it in terms of shape, color and other attributes to appeal to the consumer. Medis has previously announced that it is seeking alliances with large companies both for engineering development support and production and distribution of its fuel cell products and such discussions are taking place.

Medis expects the Power Pack to work in the following way: once the consumer uses the battery until it is depleted of its charging capability, he or she connects the Power Pack to the battery through the phone’s existing charging port. The consumer continues to use the device - talk on the cell phone or use a PDA or other hand held device - while the Power Pack is fully recharging the battery. The Power Pack can then either remain connected to the device, maintaining the battery at constant full charge, or, be disconnected from the device and be reconnected to recharge the battery, once again, when it is depleted of its power. After the Power Pack has been used for a number of charges or hours of talk, the Power Pack, itself, will be able to be refueled in a matter of seconds by simply replacing the fuel cartridge and throwing out the old cartridge.

“We believe that the Medis Power Pack can present an exciting new solution to the problem of too short battery life for portable electronic devices,” said Robert K. Lifton, Chairman and CEO of Medis Technologies. “For years, users of cell phones, PDA’s and other hand-helds have faced the frustrating problem of having the battery run out of power too soon, sometimes at particularly inopportune moments. As more functions are heaped on these devices, and the consumer is using them for longer periods of time, the inability of the battery to provide the necessary extended time is becoming an increasing source of consumer dissatisfaction. Recharging the battery presently requires being at a particular location where the electricity is available and it takes at least two hours and as much as four hours to recharge the battery during which time the device is unable to function.

“We consider the solutions available to consumers until now to be unsatisfying. Even if the consumer remembers slavishly to charge the battery each night and at each opportunity in an electrical connection, like a car, increased use can still cause battery failures. Moreover, tens of millions of users of cell phones, PDA’s and other hand-held devices in countries like China and certain countries in South America where the cell phone has for the most part replaced telephone land-lines, have limited availability of charging sources with which to charge the phone since they may not have electricity readily available either in cars or houses. Some consumers have resorted to buying and carrying with them expensive, heavy batteries to use when the primary battery has to be charged.

“The Medis Power Pack will allow the user of these devices to be independent of stationery power sources. The consumer can be wireless, that is, truly free of a need for an electrical connection and able to enjoy uninterrupted power. No more worries about the battery running out of power. No more failed power as a result of forgetting or being unable to charge the phone or other device every night. No more looking desperately for a place to charge the battery. No more down time while a battery is charging.

”We expect the size and weight of the Power Pack to be attractive for the consumer and the cost to be attractive relative to the cost of new batteries in view of the anticipated low cost of the Medis fuel cells of $2.50 to $3.50 per watt. Because the Medis fuel cell does not start operating until the first fuel cartridge is inserted, the Power Pack is expected to have a very long shelf life. And since the fuel cell provides power only in response to the draw down of the device to which it is connected, the Power Pack will be able to start and stop, time and again.”

Mr. Lifton concluded, “We believe that there is a very large potential customer base for this Power Pack product. Over one billion cell phones, PDA’s and other handhelds are already in the market and each year close to 400 million new products are sold which, after deducting replacements, significantly increase the total number of units outstanding. We see a great opportunity given this large existing base to sell a product offering uninterrupted power free of the constraints of an electrical connection.”

Medis Technologies is involved in the development of highly advanced proprietary technology products primarily related to sources of clean energy for the 21st Century. The Company’s primary focus is on Direct Liquid Fuel Cell technology. Its business strategy is to license, sell or joint venture with large international corporations. The Company’s product pipeline, in varying stages of development, includes highly electrically conductive polymers, the toroidal engine and compressor, stirling cycle linear compressor and reciprocating electrical machines. The Company has also developed the CellScan with many applications relating to disease diagnostics and chemo sensitivity.

This report may contain forward-looking statements, which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve risk and uncertainties, including, but not limited to, the successful completion of product development, the success of product tests, commercialization risks, availability of financing and results of financing efforts. Further information regarding these and other risks is described from time to time in the Company’s filings with the SEC.

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