BTI Awarded $250,000 Research and Development Grant.

TORONTO--(BUSINESS WIRE)--Sept. 14, 1998--Battery Technologies (TSE:BTI.) (OTC BB:BTIOF) Battery Technologies Inc., today announced that it has received approval for a $250,000 Industrial Research Assistance Program ("IRAP") grant from the National Research Council ("NRC"). The IRAP grant will fund research and development programs related to continuous improvements in performance of BTI's rechargeable alkaline small format batteries ("RAM(TM)"). The NRC funding commences immediately and will continue for a period of one year. In total, during fiscal 1998, including the $250,000 grant announced today, the Company has received approval for $295,000 in NRC funding.

"The purpose of the research and development is to improve the capacity of RAM(TM) batteries on first discharge from our current standard of 80 percent of primary alkaline batteries to greater than 90 percent," said Dr. Karl Kordesch, BTI's Senior Vice President and Research Director and the inventor of the world's first original primary alkaline battery. "Also, we are targeting to improve the performance of RAM(TM) batteries over 25 cycles to 12 times the performance of Eveready and Duracell batteries, an improvement of 20 percent," added Dr. Kordesch.

"Improving capacity and performance of our RAM(TM) batteries along with our plans to introduce a new high rate RAM(TM) battery will ensure that BTI and its licensees maintain our technology lead and superiority over other rechargeables and primary batteries," said Mr. Bruce Pope, President and Chief Executive Officer of BTI. "I am confident that Dr. Kordesch and his team lead by Dr. Josef Daniel-Ivad, our Vice President of Technology Development, will deliver on these important improvements to the RAM(TM) technology."

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(TM); BIG Battery Innovation Group GmbH, BIG(TM); 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 portable plug-in rechargeable RAM(TM) battery pack for Nintendo's(R) Game Boy(R) pocket, that triples the use time of Game Boy to 22 hours of non-stop use. Total available hours of use with the pack exceeds 300, replacing at least 75 disposable batteries for significant cost savings to the consumer. 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 licensed to produce products for Nintendo of America Inc. Nintendo(R) and GameBoy(R) Pocket are trademarks of Nintendo of America Inc. RAM(TM) and Game Buddy(TM) Power pack are registered trademarks of Battery Technologies Inc., Richmond Hill, Ontario, Canada.

    CONTACT: Battery Technologies Inc.
              Bruce Pope, 905/881-5100 ext. 224
                           or
              Battery Technologies Inc.
              Stephen W. Massel, 905/881-5100 ext. 227