Home   Achievements   News Releases   October 20, 2005 News Release

22,500,000.00 Fuel Cell License To Hong Kong Company

MAGPOWER™ SYSTEMS INC.
News Release ­ October 20, 2005

MagPower™ Systems Inc. signs 14 year licensing agreement allowing for the use of its portable Magnesium-Air Fuel Cell
(MAPC) in Hong Kong, China and Macau.

VANCOUVER, BC, Canada ­ With the Honourable Gordon Campbell hosting His Excellency Donald Tsang, Chief
Executive of Hong Kong and His Excellency Huang Huahua, Governor of Guangdong Province this weekend, MagPower™
Systems Inc. is taking this opportunity to formally announce that it has signed and granted a license of its Magnesium-Air
Fuel Cell (MAFC) to Dragon EnviroPower International Ltd., a Hong Kong based company. In addition to the
$5,000,000.00 licensing fee MagPower™ will also generate minimum royalties from the agreement on this single product in
the amount of $17,500,000.00 although it is a multi-product agreement.

Shawn A. McGroarty, CEO of MagPower™ Systems Inc.
"Dragon is a respected company that will situate itself well with our other Licensees we have around the world. They have very aggressive development plans to initiate
manufacturing by the 2nd quarter of 2006. Additionally, we at MagPower™ truly appreciate the efforts of Premier Campbell as directed through Mr. Anton Kuipers of Leading Edge BC as well as Dr. David Ghosh of the National Research Council of Canada (NRC)."

Dr. Richard Petty, CEO of Dragon EnviroPower International Ltd. ""Dragon EnviroPower is delighted to be working with MagPower in commercializing MagPower™'s revolutionary MAFC technology. Following years of intensive R&D by MagPower™, production on a mass scale of the MAFC is now ready to begin with our partners in China. The environmental advantages of the MAFC make it a compelling remote and alternative power source. We are excited to be investing in a technology that promises benefits not just to our shareholders but also to the environment and to society as a whole".

MagPower Systems Inc. has developed a powerful, reliable and environmentally friendly non-toxic alternative power source that generates electricity through an electrolyte of magnesium, oxygen, saltwater and MagPower™'s patented hydrogen inhibitors. As a primary, secondary or emergency power source, the fuel cell is ready for commercialization.

FOR MORE INFORMATION, CONTACT:
CEO: Shawn A. McGroarty
Phone:  604.940.3232
Fax:  604.940.3233
Address: 330 - 6165 Highway 17 Delta, British Columbia, V4K 5B8
Email: CEO@magpowersystems.com
Web address: www.magpowersystems.com

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DISCLAIMER:
This news release contains forward-looking statements relating to future results of the company as defined in the Private Securities
Litigation Reform Act of 1995. Actual results may differ materially as a result of certain risks and uncertainties. These risks and
uncertainties include, but are not limited to: the successful commercialization of its alternative fuel cell technology; its ability to
acquire and develop both new and existing forms of alternative energy technology; market acceptance and demand; pricing pressures
and other competitive factors; as well as other risks and uncertainties, including but not limited to those detailed from time to time in
the company's Securities and Exchange Commission filings. These forward-looking statements are made only as of the date hereof,
and the company undertakes no obligation to update or revise the forward-looking statements, whether as a result of new information,
future events or otherwise