--PWTC-- Power Technology, Inc. Signs First Major Licensing Agreement For Its Power Battery.

Business Editors

LAS VEGAS--(BUSINESS WIRE)--Aug. 23, 2001

Power Technology, Inc. (OTCBB:PWTC) (the "Company") announced today that it has signed a licensing agreement with Gartner Trans, a privately held company located in Ljubljana, The Republic of Slovenia, for the manufacturing of Power Technology's new battery.

A binding contract has been executed for 3 years, with two consecutive 2-year extensions to follow, based on Gartner Trans' performance.

Power Technology will grant to Gartner Trans a licensing agreement for the Company's patents for reticulated battery plates, to be used for the manufacturing and distribution of the Company's batteries to an already existing market in specific Eastern European countries.

Gartner Trans will pay Power Technology, Inc. a one-time technology transfer fee of $250,000 US. Additionally, under the terms of the licensing agreement, for each battery Gartner Trans produces during the term of the contract, Power Technology will receive a fee of $1.50.

In fiscal 2000, Gartner Trans produced 600,000 batteries, which would have equated to $900,000 in revenue under the new contract. Gartner has committed to changing their entire production line to fit Power Technology's patented structure.

"We met with a number of potential licensees for our battery technology," commented Lee Balak, Power Technology's President and Chief Executive Officer. "We were very impressed with Gartner Trans' grasp of our technology, its fine reputation in the marketplace, and their willingness to work closely with us." Mr. Balak continued, "Equally important, Gartner Trans' Eastern European location, as well as their extensive business contacts, gives us a ready-made market in a part of the world that is in great need of alternative sources of clean power."

"Furthermore," Mr. Balak commented, "This is a very exciting time for Power Technology. We continue to have discussions with additional OEMs, who have also expressed interest in licensing and producing our power battery, and hope to reach agreements in the near to mid-term."

About the Companies

Gartner Trans (dba Vesna), located in the Republic of Slovenia, has been involved in the manufacturing of batteries since 1923, when their first batteries were made by hand. Today, the company has two major product lines: (1) the production of automotive starter batteries; and (2) the production of hermetical VRLA (Valve-Regulated Lead Acid) batteries.

Power Technology, Inc. is a Las Vegas-based development company which holds several patents in the power generation and storage fields; and is working to provide innovative and practical battery-based technology solutions for commercial, government, and industrial applications worldwide.

Certain statements in this news release may constitute "forward-looking" statements within the meaning of Section 21E of the Securities Act of 1934. Such forward-looking statements may involve risks, uncertainties, and other factors, which may cause the actual results, performance, or achievements to differ from those expressed or implied by such forward-looking statements.

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