Battery Technologies Q1 2002 Sales Triple; Results In Line With Expectations.

Business Editors

TORONTO--(BUSINESS WIRE)--May 22, 2002

Battery Technologies Inc. (OTCBB:BTIOF.OB) (TSE:BTI) today announced its first quarter 2002 financial results and indicated that sales grew significantly versus the same quarter last year, and overall results were in line with management's expectations. Revenues increased to $590,000 up almost 200% versus 2001 largely as a result of product sales from Battery Technologies Sweden, the former Dema Group, acquired in May 2001. Contract research revenues also grew in the period as the royalty revenue declined due to both rate and volume.

The company reported a loss for the first quarter ended March 31, 2002 of $698,000 or $0.01 per share compared to a loss of $466,000 or $0.01 per share for the same period last year. Principal cost differences were in SG and A, due to the inclusion of investment spending in sales and marketing in Scandinavia, and research spending behind new development programs for RAM(TM). Interest expense was reduced significantly, due the elimination of corporate debt in the last twelve months.

J. Bruce Pope, President and CEO of BTI said, "We are pleased to see good sales growth continuing for our "owned and managed" brand business in Scandinavia, particularly in this quarter, which is a little softer in retail following the holiday purchases. This quarter did not reflect any sales through our newly established distributor in the Netherlands, Landman Group, as formal signing of the agreement took place in the second quarter. We look forward to their contributions to our sales growth shortly."

 SUMMARIZED STATEMENT OF OPERATIONS AND DEFICIT (in 000's CDN dollars)
    FOR THE THREE MONTHS ENDED MARCH 31, 2002 AND 2001 (unaudited)

                                            2002              2001
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Revenue
  Products sales                             417                26
  Royalties and other income                 108               128
  Contract research revenue                   65                50
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                                             590               204
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Direct Costs
  Cost of product sales                      200                19
  Contract research expense                   50                39
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                                             250                58
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Net revenue                                  340               146
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Expenses
  Selling, general and administrative        662               262
  Research and development                   232               154
  Interest expense                            29                29
  Foreign exchange loss                        5                67
  Amortization of capital assets              52                26
  Amortization of intangibles                 58                74
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                                           1,038               612
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Loss for the period                          698               466
Loss per share                             $0.01             $0.01
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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, 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.