BlueStar Announces Forming of a Strategic Marketing Alliance with General Motors Corporation in the United States.

VANCOUVER, BRITISH COLUMBIA--(BUSINESS WIRE)--May 13, 1998--BlueStar Battery Sys(Alberta Stock Exchange:BHW.) BlueStar Battery Systems International Corp. ("BlueStar") (ASE:BHW), through its wholly-owned subsidiary BlueStar Systems U.S.A., Inc., is pleased to announce the forming of a strategic marketing alliance with General Motors Corporation's, Service Parts Operations (AC Delco).

At the BlueStar Convention held in Indianapolis last week and attended by battery specialists and distributors representing more than 300 independent locations across North America, General Motors announced plans describing how BlueStar will assist in streamlining the way General Motors distributes batteries to the automotive battery after-market in the United States.

General Motors told the conference attendees that it would distribute automotive batteries through three channels in the United States. These channels are the AC Delco warehouse distributors, the mass- merchandise network that serves five or six major retailers and BlueStar for the battery specialists. General Motors also emphasized that the rationalization of its customer base will entail a significant reduction in the number of warehouse distributors it deals with, from about 2,500 to less than 1,000.

BlueStar has a relationship with General Motors in Canada, in which BlueStar has the sole contract to forecast, warehouse and supply automotive batteries to General Motors' after-market consumers across Canada. In Canada, BlueStar is also a distributor of other after- market automotive products, including alternators and starter motors for Delco Remy America.

"The strength of BlueStar's integrated sourcing network and the introduction of the 1-888-AMP-HOUR marketing initiative unveiled in Indianapolis last week led to this strategic alliance with General Motors", says Darwin Sauer, President and CEO of BlueStar. "Our strategic partnerships with world-class international corporations will continue to provide the large scale manufacturing capabilities and BlueStar will continue to expand its distribution network throughout North America. BlueStar will represent the battery specialists and this alliance should initially generate additional annual revenues of approximately US $50 million".

Participants in the BlueStar Integrated Sourcing Network and 1-888-AMP-HOUR are connected to BlueStar's distribution and manufacturing channel via the Company's on-line management information system. This electronic system interactively links all of BlueStar's operations, including production, research and development, engineering, inventory management, administration, finance, marketing, sales groups and its battery manufacturers and suppliers to its network participants.

BlueStar is a developer, specialized manufacturer, assembler and marketer of an extensive range of products sold in the international marketplace and has evolved into one of North America's largest integrated sourcing networks ("ISN") of batteries and battery related-products. BlueStar, through its network, markets over 6,000 different battery products from more than 165 suppliers. The Company anticipates that its product lines will continue to be enhanced through further strategic alliances with the world's leading cell and battery pack manufacturers, along with the continued expansion of its integrated sourcing network participants. -0- The Alberta Stock Exchange has neither approved nor disapproved the information contained herein.

CONTACT: BlueStar Battery Systems International Corp.

Greg Agar, 604/681-0363

1-800-806-5611

or

BlueStar Battery Systems International Corp.

Gordon Keast, 604/538-0258

or

BlueStar Battery Systems International Corp.

Wendy a'Beckett, 604/669-0323

http://www.bstar.com