Release

CAP-XX Signs Contract With Polar Twin Advance to Expand Production Capacity

Sydney, Australia – March 1, 2005 – CAP-XX Inc., a leader in supercapacitor technology for wireless and portable devices, announced today a contract with Polar Twin Advance (PTA) of Penang, Malaysia that will significantly expand production capacity for CAP-XX's ultra-low equivalent-series resistance (ESR) prismatic supercapacitors. PTA's expertise in packaging, manufacturing and materials will also allow CAP-XX to develop both smaller and surface-mount packaging options for its next generation of products.

According to Anthony Kongats, CEO of CAP-XX, “Polar Twin Advance is an excellent partner as they have leading-edge experience in semiconductor packaging and materials plus offer proven manufacturing technology. PTA's capabilities will allow us to improve our existing products plus develop future supercapacitors that continue to push the envelope in power solutions for increasingly smaller and more functional devices."

S.Y. Lee, CEO of PTA, stated, “CAP-XX is a leader in supercapacitor technology which is an ideal complement to our areas of expertise. CAP-XX has a strong customer base yet also a large untapped market that we feel will benefit from our cooperation."

Ensuring Non-Stop Supply to Customers

Initially, PTA will replicate CAP-XX's current line at their Penang location using the same equipment and processes used at CAP-XX's Sydney facility.

PTA's first production is expected to ship in Q3'2005. The company expects PTA's output to reach that of CAP-XX by Q4'2005, doubling current capacity, and will scale it thereafter to meet market demand.

CAP-XX will continue to produce the same products at its facility in Sydney.

About Supercapacitors and CAP-XX Supercapacitors

With their high power and energy densities, supercapacitors provide the high burst power required, for example, when taking a digital photo, sending wireless phone or PDA transmissions, providing back-up energy or hot-swapping battery packs.

CAP-XX has pioneered supercapacitor technology that leads the industry in energy density by combining high capacitance and low internal resistance in a thin and flat package. This has enabled manufacturers to overcome previous power limitations and design smaller, thinner, longer-running GPRS/EDGE/3G communication devices such as smartphones, PDAs, and PCMCIA and Compact Flash modems. CAP-XX is also enabling emerging medical and consumer applications such as White LED flash in cell phones and digital cameras.

About Polar Twin Advance

Polar Twin Advance develops solutions in embedded microprocessor application products, state-of-the-art semiconductor packaging and advance electronics materials. The company offers miniaturized design and manufacturing technology and contract manufacturing services from concept to product delivery. Polar Twin Advance has headquarters in Penang, Malaysia and is a certified ISO9002, QS9000 and MDD company. For more information visit http://www.polarta.com.

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 power tools. The private company has its main operational base in Sydney, Australia, 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.

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