FINANCIAL HIGHLIGHTS

Fundraising

Since its inception in January 1999, PolyFuel has successfully completed several rounds of private equity financing raising a total of approximately $37.1 million (net of issuance costs).
On 5 July 2005, PolyFuel announced the admission of its common stock and Series A warrants to the London Stock Exchange Alternative Investment Market (“AIM”). The Company raised a total of £6.6 million (net of issuance costs) through a placing of 15,686,276 shares and 7,843,138 Series A warrants. The warrants issued in connection with the placing will be exercisable for a period of 18 months from the Admission Date at a price of 60p per share, which will raise a further £4.7 million if exercised in full.
On 23 January 2006, PolyFuel announced the completion of a successful follow-on financing with the placing of an additional 12,500,000 common shares at a price of 80p per share, yielding total estimated proceeds of approximately £9.5 million (net of issuance costs). These proceeds are intended to mitigate any risks associated with the possibility that the aforementioned Series A warrants may not be exercised prior to expiration and to otherwise strengthen the Company's balance sheet. The Company believe that its strengthened balance sheet will also help to remove any potential uncertainty among customers and partners regarding PolyFuel’s financial capability to execute its business plan as the portable fuel cell market reaches commercialization expected in 2007 and 2008.

Since its inception to 31 December 2005, the Company has generated revenues totaling US$1,885,208.
For the twelve months ended 31 December 2005, the Company generated revenues of US$1,040,347.