ERC nickel-zinc battery achieves 11,000 cycle milestone; potential for hybrid electric vehicle applications.

DANBURY, Conn.--(BUSINESS WIRE)--April 10, 1997--ERC announced today that its sealed nickel-zinc Rechargeable battery achieved over 11,000 cycles at a 10 percent depth of discharge. "This result combined with earlier reported performance of over 600 cycles at deep discharges (80 percent depth) suggests that this battery could be used in a broad range of hybrid electric (HEV) and all electric vehicle (EV) propulsion systems," said Allen Charkey, vice president of ERC's Battery Division.

In addition to the above cycling capability, the ERC nickel- zinc battery employs a low cost, environmentally friendly zinc, negative electrode and a low cost nickel-graphite positive electrode. The high voltage level and the light weight of the zinc electrode compared to negative electrodes commonly used in other rechargeable batteries yields certain advantages. ERC's nickel-zinc battery, for example, because of its 30 percent higher voltage can deliver substantially higher energy per unit weight, and requires fewer cells than a nickel cadmium battery, an important feature in electric vehicle design.

EVs generally require a deep discharge capability. For example, 600 cycles at 80 percent depth of discharge is roughly equivalent to 60,000 cumulative miles of driving in a typical EV design. HEVs could require many thousands of shallow cycles, or deep cycles, or a combination thereof depending on vehicle design, driving objectives and the interrelationship between the internal combustion engine and battery driven electric motors. This makes the ERC nickel- zinc battery a highly attractive candidate for this application.

This press release contains forward-looking information, including statements regarding ERC's expectations and intentions concerning the development and commercialization of its nickel-zinc rechargeable battery. Readers are cautioned that such forward-looking statements involve risks and uncertainties, including, without limitation, the risk that the Company will not be able to successfully complete the development of its battery, that once developed that the battery will perform as anticipated or be adopted for use in EVs or HEVs, that the Company's technologies will not be rendered obsolete by other technological developments, and other risks generally associated with the development of new technologies. The forward-looking statements are also subject to risks set forth in ERC's reports filed with the Securities and Exchange Commission. The forward-looking statements contained herein speak only as of the date of this Press Release. ERC expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any such statement to reflect any change in ERC's expectations or any change in events, conditions or circumstances on which any such statement is based.

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 and commercializing its Direct Fuel Cells and nickel-zinc batteries in cooperation with government, electric utility and major industrial organizations on a worldwide basis.

CONTACT: William Baker

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Internet: http://www.ercc.com