ActaCell Momentum Continues, Award of Up To $1 Million Investment Through the Texas Emerging Technology Fund

Infusion In Addition to Google.org, DFJ Mercury and Other Investments; Company Progress Toward Commercialization of Li-Ion Batteries Continues

November 10, 2009 – ActaCell, an innovator in next generation high power lithium ion batteries, is proud to announce it was selected by the State of Texas, through the Austin Chamber of Commerce and the Central Texas Regional Center of Innovation and Commercialization (CenTex RCIC), to be awarded investment by the Texas Emerging Technology Fund (ETF). The ETF selection means a $250,000 pre-seed award of a reserved amount up to $1 million. This investment is combined with Series A funding of $5.8 million received a year ago from names such as Google.org and DJF Mercury. All investments fuel ActaCell to continue its momentum toward commercialization of its Li-Ion technology.

“We are honored to be chosen by the state of Texas to receive the ETF award,” said Bill Ott, President & CEO of ActaCell, Inc. “Funding from the ETF, along with the final tranche milestone from our Series A financing will allow us to continue to execute our business plan of expanding the technical and management ranks of the company, as well as completing a world class Li-Ion R&D facility.”

ActaCell focuses on the field of developing lithium ion batteries which provide longer cycle life at a low cost, a major challenge in the development of cost effective Electric Vehicles. In conjunction with The University of Texas at Austin, this team has created a manganese spinel formulation that helps solve the capacity fade problem commonly encountered with this battery chemistry. When commercialized, ActaCell will provide Li-Ion batteries that incorporate safe operation, low cost, long cycle life and high power performance.

Recent ActaCell technical momentum includes the build out of a 425sq ft dry room for production and continued work on pilot line manufacturing progress toward production. Already, ActaCell has beaten company technical milestone targets by over 200% through work with an industry partner to scale up manufacture of its proprietary Li-Ion chemistry. This physical infrastructure and development progress validates the commercial viability of the ActaCell process and cost structure, while also allowing ActaCell to continue on its next phase of building and testing complete cells and modules/packs in target application areas such as HEV and PHEV.

The ETF award is a great validator for ActaCell, but also very important to the State of Texas in its drive to be a leader in clean energy research, development, and creation of green jobs. Particularly ActaCell’s strong partnership with the University of Texas, and productizing the University’s research and development, has the company very much in the heart of the clean/green innovation for the state.

Management fortification includes the addition of Mr. Don Runkle to the ActaCell advisory board. Don’s past accomplishments include Vice President & General Manager of the Energy & Engine Mgmt Division of General Motors where he provided oversight for such activities as the establishment of the US Advanced Battery Consortium (USABC) and for development of the EV1. Runkle also was part of the GM management team that formed parts supplier Delphi, serving as Vice Chairman and CTO. Don is currently CEO of EcoMotors International, Chairman of EaglePicher Corporation and an operating executive with Tennenbaum Capital Partners.

About ActaCell, Inc.
ActaCell is an Austin-based technology company with deep roots at The University of Texas at Austin. ActaCell is pioneering refinements to battery technology that will deliver long cycle life at low cost with safety as the number one priority. Still in the development phase, further details on ActaCell’s technology have not been publicly disclosed.

ActaCell Closes $5.8 Million Series A Financing; Investment Consortium Led By DFJ Mercury Includes Google.org, Applied Ventures and Good Energies

Company to use Funds to Commercialize Innovative Lithium-Ion Battery Technology

AUSTIN, Texas – July 22, 2008 – ActaCell, Inc. announced today that it secured $5.8 million in Series A financing. DFJ Mercury led the round with syndicate investment from Google.org’s RechargeIT program, Applied Ventures, LLC, the venture capital arm of Applied Materials, Inc. and Good Energies, a leading global investor in the renewable energy and energy efficiency industry. The proceeds from the Series A financing will be used to hire key technical talent and to further develop ActaCell’s innovative lithium-ion battery technology for commercial purposes.

ActaCell, Inc. is an Austin-based technology start-up commercializing lithium-ion battery technology developed in Professor Arumugam Manthiram’s Material Science and Engineering lab at The University of Texas at Austin. This new technology is focused on delivering substantially longer cycle life at low cost while maintaining safety as the number one priority. The Material Science and Engineering program at the University of Texas has a long history of innovation in lithium ion chemistries.

“We were highly impressed with ActaCell’s pedigree,” said Ned Hill, managing director at DFJ Mercury. “We believe their technology will significantly impact industries that rely on rechargeable batteries, particularly those that require high power and long cycle life such as Plug-in Hybrid Electric Vehicles. Low cost, long life and safety are key attributes of ActaCell’s battery roadmap, the holy grail of battery technologies on the market today.”

RechargeIT is a Google.org initiative that aims to reduce carbon dioxide (CO2) emissions, cut oil use and stabilize the electrical grid by accelerating the adoption of plug-in hybrid electric vehicles and vehicle-to-grid technology. Google.org demonstrates the technology using its own fleet and supporting others through grants and investments.

“When we launched RechargeIT we announced a request for investment proposals, hoping to identify top entrepreneurs finding innovative transportation solutions to reduce greenhouse gas emissions that cause global warming,” said Gregory Miller, Google.org’s managing director of investments. “Google.org is delighted to include ActaCell among the exciting companies we’re supporting.”

In connection with this transaction, DFJ Mercury’s Ned Hill will join the ActaCell board of directors along with Dr. James R. Akridge, former Senior Director of Technology at Energizer and former CEO at Valence Technology, Inc.

“We are very pleased to have received financing from such prestigious and credible sources as DFJ Mercury, Google.org, Applied Ventures and Good Energies,” said Bill Ott, President & CEO of ActaCell, Inc. “Battery technologies are the grand challenge facing development of cost effective Electric Vehicles today, and we are excited about the prospects of commercializing this technology from the University of Texas. Our development efforts will have an important impact on the current energy storage landscape in terms of delivered price and performance.”

Still in the development phase, ActaCell’s technology has not been publicly disclosed. Full product and technology announcements will follow in early 2009.

About DFJ Mercury
DFJ Mercury is a Texas-based seed and early-stage venture capital fund. We invest in companies with disruptive innovations that address large market opportunities in the information technology, life sciences, and cleantech sectors. A member of the global intelligence network of Draper Fisher Jurvetson funds, DFJ Mercury seeks to partner with extraordinary entrepreneurs to build globally competitive businesses. Our team has a long track record of launching, growing and investing in early-stage companies. We believe that the most important ingredient in any start-up is the entrepreneur, and our philosophy is to help entrepreneurs build their businesses even from the very early stages. For more information, visit: www.dfjmercury.com.

About Google.org (RechargeIT)
Google.org is a hybrid philanthropy that uses a range of approaches to help advance solutions to address the global challenges of our age: climate change, poverty and emerging disease. The organization operates in a traditional manner by supporting partner work with targeted grants, but can also invest in for-profit endeavors, such as efforts by companies to develop breakthrough technologies. For more information, please visit http://www.google.org.

About Applied Ventures
Applied Ventures, LLC, a subsidiary of Applied Materials, Inc. (Nasdaq: AMAT), invests in early stage companies with high growth potential pursuing technologies that are complementary to Applied Materials’ core business and can stimulate the growth of applications for semiconductors, flat panel displays and related products and services. Applied Materials is the global leader in Nanomanufacturing Technology™ solutions with a broad portfolio of innovative equipment, service and software products for the fabrication of semiconductor chips, flat panel displays, solar photovoltaic modules and cells, flexible electronics and energy efficient glass. Learn more at www.appliedmaterials.com.

About Good Energies
Good Energies is a leading global investor in the renewable energy and energy efficiency industry, focusing on investments in solar and wind as well as energy efficiency and green buildings. The company also makes investments in the developing world and in other game changing energy technologies. Good Energies is a member of COFRA Group, a privately owned group of companies. The investor is guided by the 3-P principle of People-Planet-Profit and is looking for meaningful long-term investments with outstanding growth potential. Being an investment firm, it seeks to help drive the transition to a low carbon, clean energy economy, including bringing affordable renewable energy to the developing world. Good Energies operates globally with offices in London, New York, Toronto, Washington D.C., and Zug. The annual investment budget is 350 million Euros (approx. 500 million US dollars). The current market capitalization of its portfolio amounts to more than four billion Euros (approx. six billion US dollars). For more information, please visit the Good Energies website at www.goodenergies.com.

About ActaCell, Inc.
ActaCell is an Austin-based technology company with deep roots at The University of Texas at Austin. ActaCell is pioneering refinements to battery technology that will deliver long cycle life at low cost with safety as the number one priority.