Release

CAP-XX Receives Frost & Sullivan's Technology Innovation of the Year Award for Nanotech-Enabled Energy Devices Technology

Sydney, Australia – February 7, 2006 – CAP-XX Inc. has received Frost & Sullivan's 2006 Technology Innovation of the Year Award in nanotech-enabled energy devices (supercapacitors) for the company's research that led to a breakthrough nanotechnology process for producing thin and flat, or prismatic, supercapacitors to meet the pulse-power requirements of portable devices.

The Award is presented to a company whose research is expected to bring significant contributions to the industry in terms of adoption, change, and competitive posture. The Award also recognizes the quality and depth of a company's research and development program, as well as its vision and risk-taking.

Supercapacitor technology can help bridge the gap between capacitors and batteries, delivering higher power bursts than batteries and storing more energy than capacitors. Supercapacitors provide the high power bursts required, without draining the battery, when taking a digital photo or sending wireless cell phone transmissions, for example.

Frost & Sullivan recognizes CAP-XX's research in developing supercapacitors compact enough for increasingly smaller consumer electronics. "CAP-XX has applied nanotechnology solutions and processes in its designs to produce carbon electrodes smaller than a postage stamp, but with a surface area of hundreds of square meters," notes Frost & Sullivan Research Analyst Viswanathan Krishnan. "The result is high energy and power densities in the smallest packages." The company leveraged expertise in carbon chemistry from its strategic partner CSIRO, Australia's largest research organization, to help achieve this result.

Cylindrical-type supercapacitors have been around awhile but were traditionally used for low power backup applications. This type supercapacitor is larger and has very high equivalent series resistance (ESR), so is not suitable for small handheld applications. The breakthrough CAP-XX has achieved is very high capacitance with very low ESR, providing the industry's highest energy and power densities in a thin, flat, prismatic package.

CAP-XX prismatic supercapacitors feature a small footprint of either 28 mm x 17 mm or 39 mm x 17 mm, and a thin profile of 1 mm to 3 mm. They allow designers to produce thinner, longer-running devices with functions that were previously impossible, such as LED flash camera phones that produce clear pictures even in low light.

"CAP-XX's technology targets high growth applications such as smart phones, camera phones, GPRS/EDGE/3G devices, PCMCIA and Compact Flash cards, ruggedized PDAs, digital still cameras, automated meter reading, MP3 players, wireless sensor networks, location tracking and medical devices," continued Krishnan. "It can also play a role in meeting the peak power demands in renewable energy sources such as fuel cells and solar power devices."

About CAP-XX

CAP-XX Inc. develops and manufactures high surface area, thin film capacitors known as supercapacitors. These high-power energy storage devices enable manufacturers to make smaller, thinner and longer-running products such as cell phones, PDAs, medical devices, AMRs and notebooks. The private company is based in Sydney, Australia, has additional production facilities in Malaysia, and sales offices in South Carolina and Texas, USA and Taipei, Taiwan. For more information visit http://www.cap-xx.com or send email to sales@cap-xx.com.

# # #

Note to editors: Photos are available from http://www.cap-xx.com/news/photogallery.htm.