Bluestar Battery Systems Announces Year End Revenues.

VANCOUVER, B.C.--(BUSINESS WIRE)--Jan. 17, 1996--BLUESTAR BATTERY SYST. (Alberta Stock Exchange:BHW) During the twelve months ended September 30, 1995, revenues totalled $1,192,463.

These revenues were generated by the Company's wholly-owned subsidiary BlueStar Battery Systems Corp. ("BBSC") since the acquisition by the Company on May 1, 1995. Quarterly revenues increased from $515,625 in the third quarter to $676,838 in the fourth quarter, an increase of thirty-one percent (31 percent). The revenue growth trend has continued and is attributed to the Company's strategy of global market diversification and product launches into nations including Australia, the United States of America, Canada and the United Kingdom. The Company's primary lithium products are achieving excellent market acceptance in these new geographic areas as well as in new commercial market applications such as Search and Rescue equipment.

The Company's Research and Development program, mainly focused on rechargeable lithium products, is funded in part by the US Air Force and the Canadian Department of National Defense. Of the $431,682 expended on research and development, $293,605, or sixty-eight percent (68 percent), was funded by these sources.

Deferred development costs of $154,899 relate to the launch of a new product line of lithium manganese dioxide batteries. The launch of this technology will allow for increased market diversification, particularly in markets that require high energy content and long shelf life.

On May 1, 1995, the Company acquired all of the issued and outstanding shares of Ballard Battery Systems Corporation and changed its name to BlueStar Battery Systems Corporation. BBSC develops, manufactures and markets advanced lithium batteries for military and commercial markets.

CONTACT: Greg Agar, 800/806-5611

or 604/681-0363