Battery Technologies 2nd Quarter In Line With Expectations; Cash Position Strong.

Business Editors

TORONTO--(BUSINESS WIRE)--Aug. 16, 2000

Battery Technologies Inc. (TSE:BTI.) (OTCBB:BTIOF) today announced the financial results for the second quarter 2000, and indicated that cash remains strong for the balance of the year while the major strategic initiatives previously announced are pursued.

J. Bruce Pope, President and CEO of Battery Technologies Inc. said: "We continue to be in a good cash position with liabilities reduced by 20%. We can manage our day-to-day business; while undertaking the key tasks of gaining new financing through Groome capital.com, completing our marketing opportunities in Europe, and developing further OEM business for RAM."

In May, 2000, BTI announced that it had retired the Vengrowth debt of $2.0 million, that it had secured agreement from Merita Bank of New York, to convert all outstanding debt to equity and that it had entered into an agreement with Groome Capital.com to raise additional equity financing to fund more aggressive business expansion plans. Mr. Pope commented "By the fourth quarter this year after the financing is complete, we anticipate being debt-free with the resources and plans to build RAM in Europe."

As previously announced, Nuby has been actively booking orders for its converted Snap'N'Power(TM) products with the RAM(TM) technology and BTI has its technology being evaluated by OEMs for PDA/wireless use, which we expect will enhance future revenue generation. In this most recent quarter, Eleven Engineering, of Edmonton, Alberta, creator of AIRPLAY(TM), a wireless controller for the Sony Playstation(R), designed their new second generation PS-2 controller with an optional 4-cell RAM(TM) battery pack. Many industry experts believe future console video games will use solely wireless controllers.

The quarter and year to date results approximated those recorded in 1999 before extraordinary items. However, overall earnings decreased, largely due to several non-recurring, one-time events amounting to in excess of $900,000 recorded in 1999, distorting the true quarter-to-quarter comparison. In addition, SG &A costs increased significantly primarily due to higher costs associated with professional fees and shareholder communications as the number of shareholders grew to in excess of 24,000 with large numbers in both Canada and the U.S. The balance sheet is further strengthened this year by increased cash reserves and a more than $2 million reduction in liabilities, primarily accounts payable and debt.

Mr. Pope said: "We were very happy to see volume gains from licensees; the only disappointment on the revenue line relates to government grants which we expect will be renewed upon completion of our financing. The expense side of the business remains very much under control and we believe we are well positioned for our anticipated new business later in the year."

                  SUMMARIZED BALANCE SHEET (in 000's CDN dollars)
                    AS AT JUNE 30, 2000 AND DECEMBER 31, 1999

                                                     2000     1999
                                                ----------------------
Current
  Cash and cash equivalents                           667       35
  Accounts receivable, prepaid expenses and deposits  586      884
                                                ----------------------
                                                    1,253      919
                                                ----------------------
  Deferred charges                                     20       30
  Capital equipment, net                              559      621
  RAM Technology - intangible assets                  910    1,058
                                                ----------------------
Total Assets                                        2,742    2,628
                                                ----------------------
Current Liabilities
  Accounts payable and accrued liabilities            702    1,295
  Bank loans                                        8,003    9,431
                                                ----------------------
Total liabilities                                   8,705   10,726
                                                ----------------------
Shareholders deficit                               (5,963)  (8,098)
                                                ----------------------
Total liabilities and shareholders' deficit         2,742    2,628
                                                ----------------------

               SUMMARIZED STATEMENT OF LOSS (in 000's CDN dollars)
                FOR THE SIX MONTHS ENDED JUNE 30, 2000 AND 1999

                                                     2000     1999
                                                ----------------------
Revenue
     Royalties and other income                       350      438 *
     Contract research revenue and government grants   89      206
     License fees                                     ---      303 *
                                                ----------------------
                                                      439      947 *
                                                ----------------------
Expenses
  Selling, general and administrative                 623      504
  Research and development                            391      383
  Depreciation and amortization                       295      310
  Interest and other expenses                         513      591
  Gain on termination of Partnership agreement        ---     (492)*
                                                ----------------------
                                                    1,822    1,296 *
                                                ----------------------
Loss for the period                                 1,383      349 *
Loss per share                                      $0.02    $0.01 *
                                                ----------------------
Loss for the period (net of Extraordinary items)    1,383    1,341
Loss per share (net of Extraordinary items)         $0.02    $0.03
                                                ----------------------
*Contains Extraordinary one time items

Further detailed quarterly results will be available in the Report to Shareholders to be distributed within a few days.

Battery Technologies Inc. holds 32 patents and is engaged in the worldwide commercialization of the RAM(TM) battery technology and other portable energy products. 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.

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 June 29, 2000. Readers are cautioned not to place undue reliance on forward looking statements Snap'N'Power(TM) is a registered trademark of Nuby Holdings Inc. Airplay(TM) is a registered trademark of Eleven Engineering Inc. Playstation(R) is a registered trademark of Sony Computer Entertainment Inc. RAM(TM) is a registered trademark of Battery Technologies Inc., Richmond Hill, Ontario, Canada.