3 BAT Subsidiaries Work Jointly to Introduce Electric Delivery Van.

BURBANK, Calif.--(BUSINESS WIRE)--Dec. 6, 1996--BAT International (OTC stock symbol BAAT) and three of its subsidiaries, BAT California, BAT northeast and Zinc Air Transportation, has formed a coalition to build a new multi-purpose delivery van for U.S. and international markets. BAT California is currently undergoing the completion of the first prototype vehicle at their CALSTART facility in Burbank, California. The delivery van will be based on a chassis which will be provided as a "glider" (vehicle without engine & other parts) by China Motor Corporation (CMC), under a cooperative effort with Lockheed Martin (see press release 7/24/95). CMC is the largest vehicle manufacturer in Taiwan and produces five different vehicles for Mitsubishi including the luxury sedan, "Lancer." The chassis is ideal for delivery vehicle applications because of its high payload capacity and three large rear & side doors for entry.

The delivery van will incorporate many advanced technologies including drive trains, long range batteries, and composite components. BAT and Kummerow of Germany have formed a joint venture relationship to commercialize zinc air batteries that led to the formation of the BAT subsidiary, Zinc Air Transportation. Successful testing of prototype cells were completed in July (see press releases 7/16/96, 7/30/96). BAT has signed a purchase agreement for 12,000 cells, which represents the entire international supply for 1997. The first production zinc air batteries have arrived at CALSTART for design integration into the delivery van. The range of a zinc air battery vehicle is more than four times the range of a lead acid powered vehicle and about twice the range of a nickel metal hydride vehicle. The current cost is approximately $300/kwh, which is already comparable to advanced lead acid batteries and is 1/10th the present cost of nickel metal hydride batteries. Projected costs in volume is about $100/kwh. The delivery van incorporates a small booster battery pack for acceleration and provides comparable performance to gasoline operated vehicles. Various payload and range combinations will be offered varying from 150 to 300 miles. Zinc air powered vehicles will only be offered to fleets of 10 or more vehicles because a special low cost recharging facility is required. Engineering of the delivery van allows battery packs to be exchanged in less than 5 minutes.

BAT will also be incorporating its new AC drive system in the delivery vans (release 11/22). The BAT AC drive is less than half the cost of other AC drive systems. Yet it is substantially better in performance as a result of light weight (10 kg for a 50 KW unit), easy maintenance (self diagnostic features) and numerous safety features (no start if plugged in or foot on gas, shut off in accident, etc). The AC system also provides tremendous programming and integration flexibility, with up to 110 parameters to control everything from windshield wipers to ID codes. There is also a power boost feature (similar to an after-burner on a jet engine) that can change the wave form of the electrical pulse and give the vehicle operator an instant 20% increase in power (with some efficiency loss).

BAT's East Coast subsidiary, BAT Northeast, is currently looking at possible sites to build electric delivery vans in New York and other Northeast locations. There may be a very strong market for electric delivery vehicles in New York as a result of the $1.7 Billion Clean Air/Clean Water Bond Act, which was recently passed by New York State voters, and includes $75 million for alternative fuel vehicles. New York and Massachusetts are both still holding firm on zero emission vehicle mandates that could require as many as 14,000 vehicles in Model Year 1998. There are measures being discussed in major Northeast cities to provide special access to "green curbs" in busy delivery areas for alternative fuel vehicles. This would also create a very strong demand.

BAT's first prototype delivery vehicle will be completed in late January for testing. Multiple units will be available by the end of April. Several different drive systems and battery options will be offered including conventional lead acid batteries and long range zinc air batteries, high performance AC drive systems and lower cost DC drive systems.

BAT would like to thank General Motors (GM) for all their media support of the electric vehicle industry. Their $10 million EV1 ad campaign has generated a tremendous enthusiasm for electric transportation in the U.S. and BAT is getting numerous inquiries for vehicles. We are also seeing a very strong upsurge in demand for electric vehicles internationally, where some large orders are currently being discussed.

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Bill Wason, 818/565-5555