Release

CAP-XX Receives Investment from Innovation Capital, Intel Capital and TVP

Sydney, Australia – October 25, 2000 –CAP-XX, an Australian designer and manufacturer of supercapacitors, today announced that it has received second round financing from Innovation Capital, Intel Capital, and Technology Venture Partners.

Supercapacitors, successors to batteries and capacitors, are lighter than existing portable power sources. Freed from building portable devices around batteries and capacitors, manufacturers using supercapacitors can design more compact electronic devices with greater functionality. CAP-XX’s major customers are overseas, principally in Asia and the US. The company will use the funding to work with Intel on the development of products for notebook computers, expand facilities and staff.

“The workplace is increasingly mobile, people want to be able to work wherever and whenever. The desire to be mobile, especially to connect to the Internet on the move, is driving the need for lighter, more efficient power sources. This investment allows us to continue our research and development efforts and to promote supercapacitors as power sources for mobile, wireless devices,” said Anthony Kongats, CAP-XX CEO.

“Advances in the design and manufacturer of supercapacitors will improve the portability and capability of Internet-enabled devices,” said David Bolt, Country Manager, Intel Australia. “Internet-enabled devices that are highly portable will accelerate the growth of the Internet economy and fuel the demand for computing.”

The investment transaction was led and arranged by Technology Venture Partners, an Australian VC firm specializing in information and communications technologies. “Supercapacitors have the potential to replace batteries and capacitors as the critical enabling technology of choice for anything from cellular phones to PDAs to notebook computers and power tools. CAP-XX is well positioned to become a global leader in this exciting field,” said John Murray, Executive Director of Technology Venture Partners.

Michael Quinn, Executive Chairman of Innovation Capital said, “Our investment in CAP-XX allows us to foster the growth of an Australian company with global potential, and assist that company in reaching a position of full commercial manufacturing capability.”

CAP-XX has previously received financial support from the Australian and the New South Wales governments. In 1997 the company received a federal R&D Start Grant. Recognizing the crucial nature of this support, the company maintains its core research and development in Australia. The company intends to expand its operations in Australia while maintaining a focus on its international customers.

About CAP-XX

CAP-XX produces high surface area, thin film capacitors otherwise known as supercapacitors. The private company employs more than 30 people and is currently expanding in terms of staff and facilities. For more information about CAP-XX supercapacitors, visit its World Wide Web site at www.cap-xx.com.

About Intel Capital

Intel Capital, Intel's strategic investment program, focuses on making equity investments and acquisitions to grow the Internet economy, including Internet infrastructure, content and services in support of Intel's strategic interests.

About TVP

Technology Venture Partners (TVP) was formed in May 1997 by Allan Aaron, John Murray, and Michael Hamson to address the need for venture capital among Australian technology companies. For further information, visit the TVP web site at www.tvp.com.au, email enquiries@tvp.com.au, or call 02 9223 1070.

About Innovation Capital

Innovation Capital is an Australia/US venture capital company with offices in Sydney, Perth, Ann Arbor, and Silicon Valley. Innovation Capital was established to invest in unique Australian technology opportunities with global sales potential. For further information visit www.innovationcapital.net.