Battery Technologies Announces Cessation Of Demacell In Sweden, Dema Operations Continue.

Business Editors

TORONTO--(BUSINESS WIRE)--Dec. 10, 2002

Battery Technologies Inc., (OTC-BB:BTIOF)(TSX:BTI)(BERLIN:BTM) today announced operations have ceased at its Demacell facility in Oskarshamn, Sweden, part of the Battery Technologies Sweden Group ("BTS"). Demacell held responsibility for the sales and marketing of the Demacell brand of batteries and energy saving lightbulbs and contributed approximately 10% of the total revenues of BTS. Demacell received a petition of bankruptcy by its banker, Svenska Handelsbanken AB, and the company elected not to defend the action.

The other BTS division, Dema, which has accounted for approximately 90% of total 2002 sales of BTS and has been profitable on a year-to-date basis, manages sales of the Toshiba line of batteries for BTS throughout Scandinavia.

Dema has embarked on an aggressive program to sell its full inventory of Toshiba batteries in the market at this opportune time so as to maximize its income and return. This action is being undertaken voluntarily, consistent with the previously announced new strategic initiative and direction being pursued by BTI with the support of Northern Securities Inc.

J. Bruce Pope, President and CEO of BTI said: "As part of our previously announced new strategic initiative, we have elected to allow operations at Demacell to terminate. The decision comes as a result of insufficient funds to maintain all elements of our business and a decision to focus on core elements only. We regret that we have had to take this action, but it is in the best longer term interests of both BTS and BTI, as it will result in less complex banking arrangements and a reduction in overheads, eliminating a cash drain for the company."

The investment announced November 26, 2002 by the Directors, Executives and other outside investors in a private placement expected to result in an infusion of $397,000 to BTI treasury continues, with an anticipated closing late December. These funds are for the purpose of financing the company through its strategic repositioning.

BTI is the inventor, developer and owner of the unique, patented rechargeable alkaline manganese (RAM(tm)) battery technology on which it holds 43 patents related to chemistry, product design and manufacturing processes. BTI is engaged in the worldwide commercialization of the RAM(tm) technology and other portable energy products through its licensees and the Dema Group, a wholly owned subsidiary based in Scandinavia engaged in the sales, marketing and distribution of battery and energy related products to European markets.

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 achieve its corporate objectives, uncertainty of additional funding requirements, variable economic and market conditions, 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, 2001. Readers are cautioned not to place undue reliance on forward looking statements. RAM , is a registered trademark of Battery Technologies Inc., Richmond Hill, Ontario, Canada. All other brands, product names, company names or trademarks are the property of their respective owners.