BTI Announces Private Placement and Amendments to The European Union Ram License Agreement.

TORONTO--(BUSINESS WIRE)--March 16, 1999--BTI(TSE:BTI.) (OTC Bulletin Board:BTIOF) Battery Technologies Inc., (TSE: "BTI" and OTC-BB: "BTIOF") today announced that it has entered into an agreement with a private European investor for the private placement of 1,666,667 common shares for cash consideration of $150,000. The Company stated that the funds for the private placement are currently being held in trust and will be released to the Company on closing which is expected on or before March 31, 1999.

The Company also reported today that it continues to work closely with the Battery Innovation Group GmbH ("BIG") of Schwerte, Germany in connection with the license agreement for the exclusive manufacturing and non-exclusive marketing rights for BTI's rechargeable alkaline ("RAM(tm)") small format batteries in the European Union. The Company stated that as a result of the progress made by BIG in the past few months and its assistance with the $150,000 private placement announced today, that BTI has agreed to extend the closing date for the RAM(tm) European Union licensing agreement until April 15, 1999 and also agreed to extend certain performance dates in the license agreement. The Company added that it would allow for further extensions of the closing date of the RAM(tm) European Union license agreement if BTI is successful in arranging additional private placements of common shares with the assistance of BIG. The Company stated that it anticipates that, subject to BIG completing its own financing, that the RAM(tm) European Union licensing agreement with BIG will be concluded during the second quarter of fiscal 1999.

"During the past few months we have worked very closely with BIG and its investors to complete the RAM(tm) European Union licensing agreement in order capitalize on the significant RAM(tm) opportunity in Europe". said Mr. Bruce Pope, President and Chief Executive Officer of BTI. "The agreement announced today to extend the closing date will allow both BIG and its investors sufficient time to complete the necessary fund raising which will enable BIG to close the license agreement with BTI and to raise the capital necessary to finance its own business plan."

The RAM(tm) European Union license agreement calls for BTI to receive a net license fee of US$1.0 million from BIG on closing and also a 10 percent equity interest in the BIG manufacturing, marketing and distribution business. In addition, BTI will receive royalties based upon the greater of actual and minimum sales volumes of BIG.

Battery Technologies Inc. is engaged in the worldwide commercialization of the RAM(tm) battery technology and other portable energy products. BTI's trademark for its own brand of RAM(tm) batteries is MultiCell(tm). The Company's RAM(tm) licensees and licensee trademarks include: Rayovac Corporation, RENEWAL(tm); Young Poong Corporation, ALCAVA(tm); Grand Battery Technologies, GRANDCELL and Pure Energy Battery Corporation, PURE ENERGY(tm). RAM(tm) battery products are available in AA, AAA, C and D sizes. Other products sold or under development by the Company include Game Buddy(tm) Power Pack, a RAM(tm) battery pack for use in Nintendo's GameBoy(r)Pocket. Game Buddy(tm) Power Pack is available for sale on the internet at http://WWW.GAME-BUDDY.COM and http://WWW.EBWORLD.COM. Game Buddy(tm) Power Pack is also available for sale at the following retail stores: ELECTRONIC BOUTIQUE, MEIJERS, STAR CITY, TOMMO, GAMERS WORLD VIDEO GAMES, MICROPLAY VIDEO GAME STORES and GAMERAMA.

BTI's press releases are available through the Company's Internet Home Page: http://www.bti.ca

Except for the historical statements contained herein, the matters discussed in this news release, including any revenue, expense and earnings expectations, are forward looking statements that involve risks and uncertainties. Factors that could cause actual results to differ materially include but are not limited to: the Company's ability to attract licensees with the financial and other resources to develop markets for RAM batteries, the Company's ability to attract new capital, variable economic conditions, the Company's reliance upon a single production line equipment supplier, disruption of production at any of the Company's licensee's manufacturing facilities, political and other disruptive developments, foreign currency restrictions and/or fluctuations, technological developments by competitors, a successful challenge to the validity of the Company's patents, or any of the other variables referenced in the Company's 20-F filing with the SEC, dated July 14, 1998. Readers are cautioned not to place undue reliance on forward looking statements. BTI is not currently licensed to produce products for Nintendo of America Inc. GameBoy(r)Pocket is a trademark of Nintendo of America Inc.