BTI Grants RAM Option For China and Acquires Assets Of BTI Limited Partnership.

TORONTO--(BUSINESS WIRE)--June 7, 1999--

(TSE:BTI.) (OTC Bulletin Board:BTIOF) Battery Technologies Inc.,(tm) (TSE: "BTI" and OTC-BB: "BTIOF") today announced that it has granted an option to acquire a non-exclusive license for the manufacture, marketing and distribution of rechargeable alkaline (RAM (tm)) batteries in China. Under the terms of the option agreement BTI will receive a non-refundable option fee of $200,000US during its second quarter ended June 30, 1999. The option agreement expires in May 2001.

"China is obviously a market of enormous volume potential for portable energy and RAM(tm) makes great sense because of its re-usability and cost saving benefits. said Bruce Pope, President and CEO of Battery Technologies Inc. " We are encouraged that this has been recognized and that a full license and ultimately production of RAM(tm) in China may come about in the not to distant future," added Mr. Pope.

The Company also announced today that it has acquired all of the assets of the BTI Limited Partnership, including a non-exclusive license owned by the Limited Partnership for the manufacture, marketing and distribution of RAM(tm) batteries in the United States. The Limited Partnership was formed in late 1997 and invested $1.5 million in programs related to the marketing and distribution of RAM(tm) batteries. The Company stated that the negotiated purchase price of the Limited Partnership assets was $650,000, significantly less than the $2.1 million purchase price of stipulated in a 1997 agreement that provided BTI with a right to purchase the Limited Partnership assets at the higher price. The agreement to acquire the assets of the Limited Partnership was negotiated during March and April 1999, has been approved by BTI's Board of Directors and the Toronto Stock Exchange and includes the issuance of 6,525,000 common shares. In addition, the Company agreed to amend the exercise price on 2,921,000 warrants issued in 1997 to the Limited Partnership investors to $0.15 and to extend the expiry date of all of the warrants to December 31, 2000. Common shares issued in connection with this transaction may not be resold during the next six months.

Batteryogies 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 and Game Buddy(r) Color, a RAM(tm) battery pack for use in Nintendo's GameBoy(tm)Color. Game Buddy(tm)Power Pack is currently available for sale on the internet at http://WWW.GAME-BUDDY.COM. Game Buddy(tm)Power Pack is also available for sale at the following retail stores: MEIJERS, BABBAGES, JOHNSON SMITH COMPANY, 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.