Battery Technologies Pursuing Strategic Alternatives.

Business Editors

TORONTO--(BUSINESS WIRE)--Oct. 16, 2002

Battery Technologies Inc. (OTCBB:BTIOF)(TSX:BTI)(BERLIN STOCK EXCHANGE:BTM) today announced its decision to seek strategic alternatives. BTI will seek to engage an investment banker to assist in the identification of suitable opportunities.

While this process is taking place, normal commercial and R & D activities of the company (in pursuit of product enhancements and serving both our licensees and private sector contract research clients) will continue. Operations of Battery Technologies Sweden (BTS) will continue in the marketing, sales and distribution of Toshiba and Demacell(TM) battery and lighting products in Scandinavia.

For the past eighteen months, BTI has been aggressively pursuing a strategy of marketing its own brands in Scandinavia and Western Europe and dedicating resources to enhancing its proprietary product performance characteristics. Sales revenue has been progressively increased, quarter over quarter since the acquisition of the BTS (formerly the Dema Group) business in May 2001. As was announced earlier this year, BTI has been seeking fresh financing to continue to build that business, however, market conditions have not been favourable to the achievement of that goal.

With 43 patents, significant R & D capability and technology potential, three public listings as well as substantial future tax asset opportunities, BTI believes that seeking strategic alternatives is the best course of action for the company at this time and that this process will be successful in delivering maximum value to all of the company's stakeholders.

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 Battery Technologies Sweden (formerly 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, 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, future capital requirements and the uncertainty of additional funding , sales and marketing risk due to market acceptance of the company's products, technological developments by competitors, dependence on proprietary technology, strategic partnerships and licensees, or any of the other variables referenced in the Company's 20-F filing with the SEC, dated June 27, 2002. 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.