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Power Paper Names Tony Illsley as New Chairman of Board of Directors

TEL AVIV , ISRAEL – December 13, 2004 - Power Paper Ltd., a leading provider of next-generation printable microelectronic devices, today announced that it has appointed Tony Illsley as Chairman of its Board of Directors. Mr. Illsley, who has served as a non-executive director for Power Paper since April 2004, brings top-level management experience from fast moving consumer goods (FMCG) and telecommunications companies.

Mr. Illsley began his career at Colgate Palmolive and then spent 14 years with PepsiCo Inc., where he served as president of Pepsi Cola Asia Pacific and president of Walkers Snack Foods in the UK . Following his career at PepsiCo, Mr. Illsley went on to be Chief Executive Officer of Telewest PLC, the UK 's second largest provider of broadband cable services, until the company's merger with Flextech in 2000. Mr. Illsley is also a Non-Executive Director of easyJet PLC, Capital Radio PLC, Leisure Link Group Ltd. and Lionhead PLC.

Power Paper's revolutionary thin and flexible, environment-friendly power source technology is used in a growing number of consumer and technology applications, including PowerCosmetics, a line of micro-electronic cosmetic treatments, and PowerID, a comprehensive radio frequency identification (RFID) solution for asset tracking in the supply chain and production line environments. Mr. Illsley's experience in the consumer goods industry is particularly significant, as the company's PowerID System targets major retailers and their top suppliers.

“I am delighted to take on this role. I have been impressed with the company's core technology, and the wide range of potential applications since I began my involvement six months ago,” said Mr. Illsley. “I look forward to playing an even stronger role and working with Power Paper's executive leadership as the company brings this unique technology to market.”

'We are thrilled to have Mr. Illsley as our new chairman and we have already benefited from his leadership and his high level of involvement in the company,” said Shalom Daskal, Power Paper CEO. “His proven track record and his experience with CPG companies will be invaluable in helping Power Paper achieve its next stage of growth.”

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Power Paper Ltd.

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