D. Walker Wainwright Joins Axion's Board of Directors.

NEW CASTLE, Pa. -- Axion Power International, Inc. (Pink Sheets:AXPW) announced today that D. Walker Wainwright has been elected to fill a vacancy on its board of directors created by the concurrent resignation of John Petersen, who will continue to serve as corporate counsel. Mr. Wainwright will stand for re-election at the 2007 annual meeting of Axion's stockholders.

Mr. Wainwright has over 30 years' investment banking, banking and consulting experience and has served as a managing director of Smith Barney and Kidder Peabody. Previously Mr. Wainwright served as Assistant to the President of J. Henry Schroder Bank & Trust Company and as an Assistant Representative in Chemical Bank's Beirut office. His relationship network covers a broad spectrum of domestic and international investment bankers, portfolio managers and institutional investors.

Since 2003, Mr. Wainwright has served as chief executive of Wainwright & Co. LLC, an independent financial advisory firm and investment manager that currently serves as manager or advisor for hedge fund portfolios that have an aggregate value of $200 million. The firm's activities include the identification and assessment of hedge fund investments, the monitoring of these investments and the creation of proprietary hedge fund portfolios. It also researches and reviews private investments and equity funds to assist in determining their suitability for specific accounts or portfolios and provides corporate finance advice on a selective basis to individuals and corporations. Previously, Mr. Wainwright served as an independent investment banker and consultant to smaller companies, venture capitalists and hedge funds.

Mr. Wainwright is a graduate of Stanford University (A.B. 1972) and Columbia University (M.B.A. 1976). He has been involved in a broad range of civic activities, including serving as a Trustee of the Buckley School and on the boards of the American Australian Association and New Zealand American Chamber of Commerce.

"Mr. Wainwright brings 30 years of high-level investment banking and management experience to Axion," said Thomas Granville, Axion's Chief Executive Officer. "We have devoted three years to refining our e3 Supercell technology and developing cost effective manufacturing methods. As we begin the demonstration project phase, we believe Mr. Wainwright's extensive relationship network of investment bankers, fund managers and institutional investors will bring untold value to our company."

About Axion Power International, Inc.

Axion has developed and patented a next generation energy storage device that uses carbon electrode assemblies to replace the lead-based negative electrodes used in lead-acid batteries. This new device, called the e3 Supercell, offers energy storage capacity approaching lead acid batteries and cycle life and power output characteristics approaching supercapacitors in a low-cost device that recharges rapidly and is environmentally friendly because it uses less lead.

Axion is currently producing pre-commercial prototype e3 Supercells in small quantities at its lead-acid battery plant in New Castle, Pennsylvania. These pre-commercial prototypes use the same cases, materials, internal components and manufacturing equipment as Axion's conventional lead-acid batteries. The only notable manufacturing difference is the use of carbon electrode assemblies in place of the standard lead-based negative electrodes.

Axion believes e3 Supercells are the only class of advanced battery that can be assembled on existing lead-acid battery production lines throughout the world without significant changes to production equipment and fabrication processes. It also believes it will be able to manufacture carbon electrode assemblies in volume at low cost using standard automated production methods that are commonly used in other industries. If and when its electrode manufacturing methods are fully developed, Axion believes it will be able to sell carbon electrode assemblies as virtual plug and play replacements for the lead based negative electrodes used by all other battery manufacturers.

Axion's goal is to become the leading supplier of carbon electrode assemblies for the lead-acid battery industry.

"Safe Harbor" Statement Under the Private Securities Litigation Reform Act of 1995:

Certain statements in this Press Release are "forward-looking statements" within the meaning of the Private Securities Litigation Act of 1995. These statements include, without limitation, statements concerning the impact of the settlement agreement on our future business prospects and our ability to successfully complete the commercialization of the e3 Supercell. These forward-looking statements are based on our current expectations and beliefs and are subject to a number of risk factors and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. Such risks and uncertainties include the risk that the settlement agreement will not produce the results we intend and all of the risks inherent in commercializing a new product (including technology risks, market risks, financial risks and implementation risks, as well as other risks and uncertainties affecting the Company, included in filings with the Securities and Exchange Commission, all of which are available at www.sec.gov. We disclaim any intention or obligation to revise any forward-looking statements, including, without limitation, financial estimates, whether as a result of new information, future events, or otherwise.