BlueStar Battery Systems International announces $6 million private placement.

VANCOUVER, BRITISH COLUMBIA--(BUSINESS WIRE)--Jan. 7, 1997-- BlueStar Battery Sys(Alberta Stock Exchange BHW.) BlueStar Battery Systems International Corp. (the "Company") is pleased to announce a brokered private placement of up to 1,200,000 units of the Company at $5.00 per unit.

Each unit consists of one common share and one-half of a non- transferable share purchase warrant. Each whole warrant entitles the holder to purchase one additional common share at the price of $6.00 for two years. Commission of 7 percent of units placed, in cash or stock, at the election of the broker, is payable in connection with the financing.

This transaction is subject to The Alberta Stock Exchange approval.

The Company is a developer, manufacturer and marketer of a wide range of battery products sold in the international marketplace. Historically, typical applications of the Company's products include portable communications equipment, emergency locator transmitters and remote sensing equipment. However, with its continued research and its expansion of distribution networks, future markets are expected to range from lead-acid to rechargeable lithium batteries. -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