Axion Power International, Inc. Successfully Manufactures its First Prototype e3 Supercells on a Conventional Lead-acid Battery Production Line.

NEW CASTLE, Pa. -- Axion Power International, Inc. (OTCBB:AXPW) announced today that its wholly owned subsidiary Axion Battery Products, Inc. has successfully manufactured its first commercial prototype e3 Supercells on a conventional lead acid battery production line.

Thomas Granville, Axion's chief executive officer, said, "In late April, we took our carbon electrode assembly prototypes; substituted them for the standard negative electrodes in our conventional lead-acid batteries and ran four complete prototype e3 Supercells through our AGM production line without a hitch. From the outside, the prototype e3 Supercells are indistinguishable from our lead-acid product. The prototype e3 Supercells have been undergoing performance testing at our facility in Woodbridge, Ontario for the last two weeks and we are very pleased with the preliminary results."

Mr. Granville continued: "For the last two years, one of our biggest questions has been whether devices based on our e3 Supercell technology could be made on conventional battery fabrication lines. We now know that we can manufacture e3 Supercell devices in our planned configuration without significant changes to standard manufacturing equipment and methods."

"Our first run was limited to four e3 Supercells due to testing constraints. We have ordered additional testing equipment and are currently planning a series of larger manufacturing tests. If our prototype manufacturing and testing activities continue at their present rate, we expect to be in a position to begin formal third-party demonstration tests by mid-summer."

Axion Power International, Inc., has developed and is preparing to introduce a new generation of rechargeable energy storage devices that are part lead-acid battery and part supercapacitor. Axion calls these devices "e3 Supercells." Where lead-acid batteries use lead-based electrodes for both the positive and negative electrodes, e3 Supercells use lead-based positive electrodes and carbon-based negative electrodes. e3 Supercells are expected to use from 40% to 70% less lead while offering longer cycle life; higher power; and faster recharge rates. In addition, e3 Supercells will be maintenance free and far less likely to fail prematurely or be damaged by overcharging or other improper use. Axion believes its e3 Supercell technology represents the first major advance in lead-acid battery technology in 30 years. Axion is implementing a platform technology business model, where it will eventually manufacture electrode assemblies for sale to established battery manufacturers that want to offer a high-performance co-branded product.

"Safe Harbor" Statement Under the Private Securities Litigation Reform Act of 1995:

Certain statements in this Press Release are "forward-looking statements" within the meaning of the Private Securities Litigation Act of 1995. These statements include, without limitation, statements concerning Axion's future business prospects and its ability to successfully complete the commercialization of the e3 Supercell technology. These forward-looking statements are based on current expectations and beliefs and are subject to a number of risk factors and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. Such risks and uncertainties include all of the risks inherent in commercializing a new product (including technology risks, market risks, financial risks and implementation risks), as well as other risks and uncertainties described in Axion's periodic filings with the Securities and Exchange Commission, all of which are available at www.sec.gov. Axion disclaims any intention or obligation to revise any forward-looking statements, including, without limitation, financial estimates, whether as a result of new information, future events, or otherwise.

Note to editors: The "3" in "e3 Supercells" should be superscript. It has been changed for transmission purposes only.