BTI to Acquire Pure Energy.

TORONTO--(BUSINESS WIRE)--April 14, 1997--(TSE BTI., NASDAQ BTIOF.) Battery Technologies Inc. ("BTI") announced today that it has entered into an agreement to acquire a controlling interest in its Canadian licensee, Pure Energy Battery Corporation of Amherst, Nova Scotia.

The acquisition has been approved in principle by the board of directors of BTI and is subject to regulatory approvals and various other approvals including that of the Nova Scotia Business Development Corporation, senior lender to Pure Energy. Closing of the acquisition is expected to occur by May 30, 1997.

Battery Technologies Inc. is engaged in the worldwide commercialization of the RAM battery technology. BTI licensees and licensee trademarks include: Rayovac Corporation, RENEWAL(TM); Young Poong Corporation, ALCAVA(TM); Grand Battery Technologies, GRANDCELL(TM); and Pure Energy Battery Corporation, PURE ENERGY(TM). RAM battery products are available in AA, AAA, C and D sizes. The Company is currently pursuing other licenses in North America, Europe, Japan and Latin and South America.

Pure Energy Battery Corporation currently manufactures and sells AA consumer format rechargeable alkaline batteries marketed under the PURE ENERGY brand name in Canada and through distributors in export markets. It also sells the ENVIROCHARGER(TM), which charges four AA or AAA RAM batteries - and is planning to introduce a smaller charger called CHARGEPAL(TM), which charges two AA or AAA cells simultaneously. Introduction of the lower cost CHARGEPAL(TM) is expected to increase consumer sampling and sales of RAM batteries.

BTI's purchase of Pure Energy represents the first of several major key initiatives in our new global business plan," said Mr. Bruce Pope, President and Chief Executive Officer of BTI.

"We plan to focus on measured - but accelerated growth, and we expect that the acquisition of Pure Energy's manufacturing capabilities will greatly enhance market awareness and sales of the RAM battery system around the world by enabling BTI to supply RAM batteries to new sales and marketing partners on a global basis."

"The purchase of Pure Energy will bring a fourth source of revenue to BTI - complementing our existing license fee, equipment sales and royalty income," Said Mr. Pope. "In addition to aggressively pursuing the Canadian retail market, Pure Energy will supply RAM batteries to existing and new licensees, export to territories which do not represent licensing opportunities and supply the burgeoning OEM opportunity for battery packs and related products."

The aggregate purchase price for the transaction is approximately CDN $5 million plus the assumption of certain debt guarantees and will be payable by a combination of BTI common stock, cash and earn-out based on future performance of Pure Energy. The transaction also involves the reacquisition by BTI of certain royalty entitlements currently held by an affiliate of the vendor.

BTI's plans for Pure Energy include the acquisition of a AAA production line for the Amherst, Nova Scotia facility to expand Pure Energy's product line to include both AA and AAA alkaline batteries - the highest growth and largest segment of the consumer format battery market.

To finance the key initiatives in its new strategic plan, BTI intends to raise approximately CDN $7.0 million in new funding - a portion of which has already been committed to by strategic investors. The Company expects to make a further announcement in the near future concerning the remaining portion of this financing.

"RAM batteries deliver excellent performance while saving consumers 90 per cent of the cost of using disposable batteries over their lifetime," said Mr. Pope, "It is one of the most significant consumer breakthroughs in recent years, and we, along with our other licensees, intend to communicate the benefits of this technology to consumers through a more aggressive sales and marketing effort. Our market research has shown that there is very high consumer conversion rates to RAM batteries from disposable batteries after trial of our system. Given the alternative we represent, I don't know why anyone would throw away their money on disposable batteries."

RAM(TM) is a trademark of Battery Technologies Inc.

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, expenses 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, 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 June 26, 1996. Readers are cautioned not to place undue reliance on forward looking statements.

CONTACT: Battery Technologies Inc.

Stephen W. Massel, 905/881-5100 x227

or

Battery Technologies Inc.

Tamara Levin, 905/881-5100 x236