BTI Reports Second Quarter Results.

TORONTO--(BUSINESS WIRE)--Aug. 16, 1999--

Battery Technologies Inc. (TSE: "BTI" and OTC-BB: "BTIOF") today announced their financial results for the second quarter ended June 30, 1999.

The Company reported a profit for the quarter of $176,000 which included a one-time gain of $492,000 on the exercise of the call option to purchase of all of the assets of the BTI Limited Partnership. Excluding the gain on the exercise of the call option, the loss for the second quarter would have been $0.01 per share ($316,000), $0.01 less than the loss of $0.02 per share ($884,000) for the second quarter of 1998.

Other factors contributing to the improvement in the second quarter of 1999 included the recognition of license revenue of $303,000 in connection with the granting of an option to a company to acquire a non-exclusive license for the manufacture, marketing and distribution of rechargeable alkaline (RAM(tm)) batteries in China. The RAM(tm) option for China expires in May 2001. The loss for the six month period ended June 30, 1999 was $349,000, or $0.01 per share, an improvement of $1,472,000, or $0.04 per share from the loss of $1,821,000, or $0.05 per share, for the same period in fiscal 1998.

"Revenues continue to increase and operating expenses are under control", said Bruce Pope, President and CEO of Battery Technologies Inc. " We've effectively broadened our base of revenue sources and look for that to continue to help us in our fiscal 1999 goal of "cash flow positive". In the second half we expect to see good volume gains from our licensees and continued revenue growth," added Mr. Pope.

The Company also announced today a change in The VenGrowth Investment Fund Inc. representative on its board of directors. Michael Cohen, Managing Director, VenGrowth Capital Management Inc., and a director of the Company since 1995, has resigned as a director of the Company and replaced as Vengrowth's representative by Mr. Jake Van Ginkel an appointee of Vengrowth Capital Management Inc. Mr. Van Ginkel brings to BTI over 20 years experience in business building and financing.

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 and Game Buddy(tm) Color, a RAM(tm) battery pack for use in Nintendo's GameBoy(r) 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, and JOHNSON SMITH COMPANY.

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

SUMMARIZED STATEMENT OF LOSS (in 000's CDN dollars)
SECOND QUARTER AND SIX MONTHS ENDED JUNE 30, 1999 AND 1998

                     Three months ended       Six months ended
                         June 30                June 30
                         1999      1998         1999      1998
                     ------------------       ----------------

Net revenue               603      $305          947      $453
                          ---      ----          ---      ----

Expenses
 Selling, general and
   administrative         286       532          504     1,006
 Research and development 203       207          383       409
 Depreciation and
   amortization           155       164          310       332
 Interest and other
   expenses               275       286          591       527
 Gain on exercise of call
   option                (492)        -         (492)        -
                         -----        -         -----        -
                          427     1,189        1,296     2,274
                          ---     ----         -----     -----
Income (loss)             176     ($884)       ($349)  ($1,821)
                          ---     ------       ------  -------
                          ---     ------       ------  -------

Basic income (loss) per
  share                 $0.00    ($0.02)      ($0.01)  ($0.05)
                        -----    -------      -------  -------
                        -----    -------      -------  -------

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, 1999. 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.