Battery Technologies Inc. Extends And Re-Prices Warrants.

Business Editors

TORONTO--(BUSINESS WIRE)--Jan. 30, 2003

Battery Technologies Inc. (OTCBB:BTIOF) (TSX:BTI) (BSE:BTM) BTI announced today that it has received approval from the Toronto Stock Exchange (TSX) to re-price its outstanding warrants to $0.10 and to extend their expiry date by up to one year until February 7, 2004. The original warrants were part of BTI'S prospectus offering which closed in January and February 2001, in which investors purchased units offered at a price of $0.52, each unit consisting of one BTI share and one share purchase warrant exercisable at $0.57, until February 7, 2002. Each share purchase warrant entitled the holder to purchase one common share at the exercise price prior to the expiry date.

Prior to their initial expiry on February 7, 2002, 18 million warrants owned by insiders were retired and the remaining warrants re-priced to $0.33 and extended to February 7, 2003. The expiry date for the purchase warrants is now extended to February 7, 2004; however, in the event that the ten day volume weighted average price of BTI's common shares reaches $0.14 or higher, accelerated expiry conditions will require warrant-holders to exercise the warrants within a 30 day period, after which they will expire.

J. Bruce Pope, President and CEO of BTI said: "We're very pleased the TSX has approved our request to re-price the warrants which were due to expire on February 7, 2003; as it allows greater potential for BTI to realize additional treasury income in the short term, by having the new exercise price reflect current market pricing and conditions. Additionally, it enables those outside investors who have provided vital funding to BTI, to have an on-going opportunity to realize a return on their investment. This is good for the company and for shareholders."

Consistent with TSX requirements, non-arm's length parties cannot benefit from such a re-pricing, and Mr. Pope confirmed that there were no warrants currently held by insiders.

However, Mr. Pope added, "I am pleased by the support and commitment of BTI's directors and officers who participated in a private placement of common shares which closed in December 2002 in which 5,300,000 shares were issued, raising approximately $397,500 for general corporate purposes."

In November 2002, BTI engaged Northern Securities Inc. as its financial advisor to assist the Company in evaluating strategic alternatives and identifying possible business opportunities and partners to provide the investment necessary to maximize the return for BTI's shareholders. Mr. Pope indicated that: "The activities focused on moving BTI to its next strategic phase are advancing, and we are targeting 1Q 2003 for specific news regarding the repositioning." He reiterated that: " The significant technical potential of our research expertise, strong patent portfolio and recent technical breakthroughs on our unique rechargeable alkaline chemistry ("RAM(TM)), combined with substantial future tax asset opportunities, give us strong cause to believe that we represent good synergistic value to prospective allies or investors."

Mr. Pope went on to say, "We recently announced a research breakthrough on the performance of our advanced formula Marathon RAM(TM). New formulations for the Marathon cell have been developed to yield outstanding cycling performance, with almost 100% more energy output in higher cycles than currently available product. A second production trial of the new formulation is in process this week and long term use and abuse testing is virtually complete. We expect that these new formulations will provide increased consumer satisfaction with RAM(TM) products and that these performance enhancements, together with RAM(TM)'s long shelf line and environmental friendliness, will be attractive to OEM manufacturers as a low cost alternative to other rechargeable chemistries. These new improvements will be delivered to BTI's existing licensees in the near future, so that they may quickly incorporate these enhancements into their product offerings.

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 Dema AB, a wholly owned subsidiary based in Scandinavia, engaged in the sales, marketing and distribution of battery and energy related products to European markets.

RAM(TM) 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.