Battery Technologies Prices $5 Million Equity Offering To Fund European Expansion, Eliminate Debt.

Business Editors

TORONTO--(BUSINESS WIRE)--Dec. 8, 2000

Battery Technologies Inc. (TSE:BTI.)(OTCBB:BTIOF)

Battery Technologies Inc. (TSE:BTI.)(OTCBB:BTIOF.OB) today announced that it has priced its equity financing and filed its final prospectus with the Securities Commissions in the provinces of Alberta, British Columbia, New Brunswick, Ontario, Quebec and Saskatchewan.

The company seeks to raise a minimum of $1 million and up to a maximum of $5 million through Groome Capital.com Inc. The offering unit, priced at $0.52, consists of one BTI Common Share and one Common Share Purchase Warrant, except that investors who subscribe for the first $1 million worth of units, will receive 1.25 Common Share Purchase Warrants. The Common Share and the Common Share Warrant are independently tradeable and the Warrant is exercisable at a price of $0.57 through February 7, 2002.

BTI's long term lender, Merita NordBanken Group ("Merita") has agreed to convert BTI's outstanding debt obligation to it of approximately $8.4 million into equity, coincident with the initial closing of the offering. Merita will receive units consisting of one Common Share and 1.25 Common Share Purchase Warrants.

Mr. J. Bruce Pope, President and Chief Executive Officer of BTI commented: "The funds raised through this offering will enable the company to embark on the next key step of its corporate strategic plan of building BTI's proprietary RAM(TM) technology into an important factor in the European portable energy market. Europe represents the market of greatest development and potential for rechargeable batteries and BTI intends to become a strong competitor in that market."

On November 22, 2000, the company announced that it had entered into a letter of intent to acquire 100% of the business operations, assets and trademarks of Accucell Deutschland ("Accucell") of Waiblingen, Germany (http://www.accucell.de); a company already active in the marketing, distribution, charger and applications development of RAM(TM) batteries. Accucell has progressively built its sales volume each year and has both retail and large commercial OEM customers and has established its brand, Accucell(TM), as a leading rechargeable battery system in Germany, the highest developed rechargeable battery market in the world. BTI will be acquiring the business subject to signing a final binding agreement, expected to be completed in December, and following receipt of all necessary regulatory and other approvals.

Mr. Pope added: " To be able to embark on our growth plans from a financial base that is debt-free, is a tremendous advantage; and we expect that development of the Accucell(TM) franchise, as well as other new corporate relationships will flourish as a result. Having Merita convert to equity-holder status is a milestone in our corporate life and we are very appreciative of their support over the last several years."

Battery Technologies Inc. holds 43 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(TM) 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. Accucell(TM) is a registered trademark of Accucell Deutschland. RAM(TM) is a registered trademark of Battery Technologies Inc., Richmond Hill, Ontario, Canada.