ERC Announces Naming of New President.

DANBURY, Conn.--(BUSINESS WIRE)--August 4, 1997--Energy Research Corporation (AMEX: ERC) announced today that Mr. Jerry D. Leitman has been named its President and Chief Executive Officer. The appointment which becomes effective today, was announced today by Dr. Bernard S. Baker, founder and former CEO, who has become the Chairman of the Board.

Mr. Leitman (55) was previously President of ABB Asea Brown Boveri's global air pollution control businesses. ABB is a Swiss-based electrical industrial group and its air pollution control business is the largest in the world, with primary focus on the world's power industry.

"Mr. Leitman has extensive worldwide experience in dealing with the electric power industry with ABB," stated Dr. Baker (61) who added "His success in dynamic growth situations on a global basis fits well with the opportunities I foresee for ERC's fuel cell power generation equipment."

"I see ERC as a truly unique company with a world leadership position in the fuel cell field" said Leitman. "The growth potential for electric power generation using ERC's fuel cells is virtually unlimited. For me, the opportunity to grow ERC, whose fuel cell equipment generates electricity efficiently and without causing air pollution, represents a welcome challenge. ERC has already established itself as a global technology leader by operating the largest and most efficient fossil energy fuel cell power plant in the Western hemisphere and by its fuel cell and battery partnerships with some of the world's leading companies. I believe we can expand our opportunities for both our fuel cell and batteries in many areas of the world where the demand for pollution-free transportation and power is not being met."

"Mr. Leitman brings to ERC a seasoned executive, whose broad experience with both the electric power and other industries, is a timely addition to the Company as we seek to commercialize both our fuel cell and battery technologies." said Baker. "I believe Jerry's business experience will provide ERC with the leadership required for the commercialization of our advanced technology products," continued Baker. "We are fortunate to have attracted an executive of Mr. Leitman's caliber to ERC. Mr. Leitman's global knowledge of both the power and automotive industries fits well with our existing worldwide relationships and potential new ones in both the fuel cell and battery areas where we expect to target electric and hybrid electric vehicle and cogeneration power opportunities."

Mr. Leitman joined ABB via its acquisition of Flakt AB, a Swedish multinational, where he was Group Executive VP, and President of Flakt's world-wide industrial businesses which included waste-to-energy plants, industrial drying equipment, and automotive paint finishing systems, in addition to air pollution control. Prior to his Group responsibilities, Mr. Leitman was CEO of Flakt's U.S. operations.

Dr. Baker and Mr. Leitman stated "We are looking forward to combining our business and technological skills to build ERC into a major world corporation."

Energy Research Corporation, located in Danbury and Torrington, Connecticut, is an internationally recognized leader in the field of electrochemical technology for electric power generation. ERC is developing its Direct Fuel Cells and batteries in cooperation with government, electric utility and major international industrial organizations.

CONTACT: Energy Research Corporation, Danbury

Peter Voyentzie, 203/792-1460

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