BlueStar Launches Exciting New Product and Opens Nine New Battery Direct Storefronts.

VANCOUVER, B.C.--(BUSINESS WIRE)--March 5, 1998--BlueStar Battery Sys(Alberta Stock Exchange:BHW.) BlueStar Battery Systems International Corp. ("BlueStar") today announced the launching of a new line of premium automotive batteries under the BlueStar Platinum label.

BlueStar is supporting the new product launch with a variety of marketing materials and an aggressive advertising campaign.

"We are offering our customers what has proven to be one of the best lines of automotive batteries manufactured in North America, combined with an industry leading warranty program", says Darwin Sauer, President and CEO of BlueStar. "The BlueStar Platinum line of batteries offers an unprecedented free replacement warranty for up to five years for most passenger vehicle applications. Presently the BlueStar Platinum brand will be limited to automotive batteries; however, this label and program will be extended to other product types, including laptop computer and cellular phone batteries, in the near future."

BlueStar is also pleased to announce the opening of nine new "Battery Direct" storefront outlets in Alberta, British Columbia and the State of Utah in the United States. "Battery Direct" is a specialty storefront format that offers consumers a wide range of batteries and related products, expert advice and service from knowledgeable well trained staff, and supported by the BlueStar integrated distribution network throughout North America.

The "Battery Direct" storefront is further enhanced by the fact that each location has fully qualified auto-electric specialists, including on-board diagnostics and service. The "Battery Direct" outlets are connected through BlueStar's distribution and manufacturing channel via the Company's proprietary on-line management information system.

This electronic link inter-connects BlueStar's production division, inventory management, administration, finance, marketing and sales groups, and integrated battery manufacturers.

"Our strategic growth plan is to convert existing distribution centres that have a solid revenue base and skilled entrepreneurs to include our "Battery Direct" storefronts," added Darwin Sauer. "This affords us the opportunity to significantly increase revenue." As part of completing the consolidation of the battery distribution market in Canada and the strengthening of market presence in Eastern Canada, BlueStar is further pleased to announce that it has signed letters of intent to acquire three Quebec regional battery distributors and automotive electrical specialists in the Quebec City, Sherbrooke and Riviere-du-Loup areas.

Upon completion of these transactions, BlueStar will acquire 100% equity ownership in these businesses. Under the terms of the letters of intent, initial consideration of approximately $1.0 million will be paid in a combination of cash and common shares of BlueStar. These shares will be issued in four installments over three years at the prevailing market prices of the shares when issued.

Based on meeting certain performance criteria and established profitability formulae, the vendors can earn additional BlueStar common shares. The transaction is contingent upon the completion of due diligence, regulatory approvals and the execution of definitive agreements. The principals of the acquired companies will remain, to become part of the growing BlueStar management team.

BlueStar is actively investigating further acquisition opportunities in both Canada and the United States to pursue its strategic growth plan and anticipates that the Company's product lines will continue to be enhanced through further strategic alliances with the world's leading cell and battery pack manufacturers and the continued expansion of its integrated sourcing network.

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.

BlueStar, through its network of over 270 owned and owner-operated locations, provides sales, marketing and distribution representation and capabilities in every State in the United States, Province in Canada and virtually every major city in North America.

From this network, BlueStar markets over 6,000 different battery products from more than 165 suppliers. All these locations are in the process of being converted to "Battery Direct" storefronts.

CONTACT: BlueStar Battery Systems International Corp.

Greg Agar, 604/681-0363

1-800-806-5611

or

Gordon Keast, 604/538-0258

or

Wendy a'Beckett,604/ 669-0323