BlueStar Closes $25 Million Credit Facility With FINOVA.

VANCOUVER, British Columbia--(BUSINESS WIRE)--Sept. 16, 1999--

BlueStar Battery Systems International Corp. ("BlueStar") (ASE:BHW.) announces an agreement with FINOVA "Canada" Capital Corporation for a $25 million asset-based Credit Facility. This new Credit Facility has a thirty-month term and is subject to increase based on the Company's performance and asset growth.

"These increased lending facilities will provide the Company with the needed working capital to grow the business and take advantage of certain opportunities to enhance the Company's profitability," says Mikel Rhodes, Chief Financial Officer of BlueStar. "With the appropriate working capital now in place, we will focus on the execution of our aggressive business plan."

This new Credit Facility supports the existing and anticipated future working capital needs of BlueStar's North American operations and replaces the Company's current banking facilities.

"This long-term Credit Facility provides more flexibility for short-term working capital credit. If we proforma the most recent quarterly unaudited financial statements at June 30, 1999, the net working capital would increase to $10 million," adds Rhodes. "The advantage and importance of the structure of these financing arrangements is that as the business grows, the facility can be increased to meet our needs."

BlueStar is one of North America's largest integrated networks for power and charging systems, providing supplier and customer participants with sales, marketing, distribution and support capabilities. The Company, through its electronic commerce network, markets over 11,000 different battery products and automotive electric components from many of the world's finest manufacturers. BlueStar continues to enhance its product lines through strategic alliances with the world's leading manufacturers, along with the strengthening of the BlueStar participant network throughout North America.

FINOVA "Canada" Capital Corporation is an indirect subsidiary of FINOVA Group Inc. (NYSE:FNV) which, is a leading provider of capital solutions for mid sized business. FINOVA is headquartered in Phoenix, Arizona, with business development offices throughout the United States, and in London, England and Toronto, Canada. To learn more about FINOVA visit the companies web site @ www.finova.com.