BTI Reports Third Quarter Results.

TORONTO--(BUSINESS WIRE)--Nov. 16, 1998--Battery Technologies(TSE:BTI.) (OTC Bulletin Board:BTIOF) Battery Technologies Inc., (TSE - "BTI" and OTC-BB - "BTIOF") today announced its financial results for the third quarter ended September 30, 1998. The Company reported a loss of $841,000, or $0.02 per share, for the three month period ended September 30, 1998, an improvement of $381,000 from the loss of $1,222,000, or $0.04 per share, for the corresponding quarter of fiscal 1997. The loss for the nine month period ended September 30, 1998 was $2,662,000, or $0.07 per share, down $1,436,000 from the loss of $4,098,000, or $0.13 per share, for the same period in fiscal 1997.

The major factors contributing to the reduction in the third quarter loss included a 104 percent increase in royalty revenue from $128,000 in the third quarter of 1997 to $262,000 in the third quarter of 1998 and a $247,000 decrease in expenses from $1,350,000 in 1997 to $1,103,000 in 1998. The increase in royalty revenue was due to significant increases in unit sales contributed to by each of BTI's licensees. Royalty revenue for the nine months ended September 30, 1998 increased 62 percent to $715,000 compared to the same period in fiscal 1997, again reflecting unit volume growth.

"The growth in every single one of our licensees' volume is a very encouraging sign for BTI," said Mr. J. Bruce Pope, President and Chief Executive Officer of BTI. "While, obviously we would have liked to have seen that translate into full coverage of our costs, and positive earnings, we're not quite there yet. Our continued efforts at expense reduction have helped, but further revenue generation is the key priority. We have seen good response to the introduction of our newest product, Game Buddy(TM) Power Pack, and expect to see a positive contribution from it this Christmas season. Evaluation of our direct marketing campaign behind MultiCell(TM), which is currently on air, continues and we are working closely with our European licensee, Battery Innovation Group, to realize the benefits of our partnership quickly."

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 RAM(TM) battery pack under development for use in Nintendo's GameBoy(R) Pocket.

SUMMARIZED STATEMENT OF LOSS (in 000's CDN dollars)
THIRD QUARTER AND NINE MONTHS ENDED SEPTEMBER 30, 1998 AND 1997


                        Three months ended   Nine months ended
                           September 30         September 30
                          1998       1997      1998      1997
                        ------------------   -----------------

Net revenue               $262       $128      $715      $442
                          ----       ----      ----      ----
Expenses
  Selling, general and
   administrative          448        494     1,454     1,544
  Research and development 182        192       591       922
  Depreciation and
   amortization            161        414       493     1,322
  Interest and
   other expenses          312        250       839       752
                          ----       ----      ----      ----
                         1,103      1,350     3,377     4,540
                         -----      -----     -----     -----
Loss                     ($841)   ($1,222)  ($2,662)  ($4,098)
                         ------   --------  --------  --------
                         ------   --------  --------  --------

Basic loss per share    ($0.02)    ($0.04)   ($0.07)   ($0.13)
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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.