Astris Energi Reports First-Quarter 2005 Results

Astris Energi Inc. (Mississauga, ON), a developer of alkaline fuel cell technology, announced unaudited consolidated financial results for the first quarter and three months ended March 31, 2005. Revenue increased to CDN62,181 for the first quarter of 2005 from CDN5,662 for the same period of 2004.

For the first quarter of 2005, expenses totalled CDN1,003,897, compared with CDN586,549 for the same period of 2004. In addition, there was a one-time write off of CDN113,364 for the cost of legal, valuation and financial planning expenses relating to the Astris s.r.o. acquisition, which was completed in January 2005. Astris reported a net loss for the first quarter of CDN941,716, which compares to a net loss of CDN580,887 for the first quarter of 2004. This represents a loss of CDN0.036 per share (basic and diluted) compared with CDN0.029 during the same period of 2004.

The acquisition of the remaining 70% of the outstanding shares of Astris s.r.o. resulted in a significant change in the company's assets from CDN866,485 at the end of the first-quarter 2004 to CDN2,656,751 at the end of the first-quarter 2005. The new asset value reflected the addition of CDN2,091,411 in property, plant, equipment and technology assets from Astris s.r.o.

Expenses were offset by financings through a 6% convertible debenture of CDN420,000 due December 10, 2005; the exercise of options for cash proceeds of CDN31,250; and the issuance of CDN1,955,000 of common stock and CDN254,000 of warrants. Shareholder's equity at March 31, 2005, was CDN1,658,540 compared to last year's shareholder's equity of CDN382,698.