ERC Announces Naming of New CFO.

DANBURY, Conn.--(BUSINESS WIRE)--Oct. 5, 1998--Energy Research Corporation (AMEX: ERC) is pleased to announce the appointment of Joseph G. Mahler as Senior VP, Chief Financial Officer, Treasurer and Corporate Secretary.

Mr. Mahler will also serve as Acting CFO of Evercel, Inc., ERC's battery business which, as recently announced, ERC intends to spin-off to its shareholders.

For the last five years, Mr. Mahler was VP and CFO of Earthgro, Inc., a manufacturer of gardening products, acquired by The Scotts Company (NYSE: SMG) earlier this year. Prior to that he was a Partner at Ernst & Young, in Hartford, Connecticut, where he managed the Entrepreneurial Services Group. He is a CPA and a 1974 graduate of Boston College.

"After two decades of work and the investment of approximately $400 million in R&D, ERC's Direct Fuel Cell technology for stationary power is moving into its commercialization phase," said Jerry D. Leitman, ERC's CEO. "We are now in discussions with possible purchasers of our first commercial field trial units."

"To effectively manage its growth phase, ERC must build enhanced capabilities in the areas of strategic development, finance, information systems and cost controls," said Joe Mahler. "I am excited about the opportunity to help move ERC and Evercel into a position to achieve its commercialization objectives."

"With his extensive experience bringing about dynamic growth in entrepreneurial companies, I look forward to his help toward our goals of having ERC become a leader in power generation equipment," said Jerry Leitman.

Mr. Lou Barth, the previous CFO, has left ERC to pursue other interests.

This press release contains forward-looking statements regarding the Company's commercialization phase and sales of field trial units that are based on current expectations that involve a number of risks and uncertainties. These statements are made under the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995.