Medis Technologies Reports Results and Product Plans

Medis Technologies Ltd. has reported financial results for the fourth quarter and year-ended December 31, 2005. For the quarter ended December 31, 2005, the net loss attributable to common stockholders was $5,242,000, or $.19 per share, based on

27,710,059 weighted average shares, compared to a net loss attributable to common stockholders of $6,296,000, or $.24 per share, based on 26,335,126 weighted average shares, for the quarter ended December 31, 2004.

For the year ended December 31, 2005, the net loss attributable to common stockholders was $18,550,000, or $.68 per share, based on 27,423,568 weighted average shares, compared to a net loss attributable to common stockholders of $17,728,000, or $.68 per share, based on 26,142,150 weighted average shares for the year ended December 31, 2004.

"In reviewing the last quarter and year end results," said Robert K. Lifton, Chairman and CEO of Medis Technologies, "there are two areas of particular note. The first is that cash used in operating activities for the fourth quarter, even after interest payments, amounted to $4.3 million, on the low side of our expectations. Even while we are gearing up our production capabilities, we are trying to keep a tight lid on expenditures.

"An important focus of our present work is on building market demand for the Power Packs planned to come off the high volume line. We have already discussed our program for testing Power Packs produced on our semi automated line and for delivering Power Packs to potential customers for trial programs, scheduled to start at the end of this June and delivery of products to our distributors for selected retail stores, scheduled to start in September of this year, " Lifton concluded.