Global partnership formed to introduce zinc air-powered electric vehicles.

BURBANK, Calif.--(BUSINESS WIRE)--Jan. 14, 1997--A global partnership consisting of a U.S. electric vehicle manufacturer, BAT International (OTC:BAAT), German-owned zinc air battery manufacturer, Kummerow NA and a Singapore energy development company, Green Fuel Resources, has been formed to introduce and commercialize zinc air-powered electric transportation.

The new company, Zinc Air Transportation, will be introducing zinc air-powered electric vehicles, buses and scooters in the Northeast United States and Asia. Zinc air batteries provide practical and cost-effective power because of their low cost, light weight and long range.

BAT International, which is currently building electric vehicles and converting U.S. Postal Service vehicles to electricity, will be completing the first prototype zinc air-powered vehicle at its CALSTART facility in Burbank.

The vehicle will be tested in a mid-winter test track in Utah in mid-February, where it is expected to demonstrate both the very long range of zinc air batteries and their excellent performance in cold weather, (zinc air batteries have four times the range of lead acid batteries (250 miles) and lose no capacity at 0 degrees Celsius).

This will be followed up with an Asian promotional tour where the vehicle will be demonstrated in various Asian countries. Green Fuel Resources will be setting up a demonstration site in Singapore where prototype delivery vehicles, taxis, buses and scooters will be showcased to interested business and political leaders in Asia.

Numerous Asian countries are currently wrestling with severe environmental, energy and financial problems posed by the rapid introduction of internal combustion engines. Four of the 10 most polluted cities are in Asia, where many now wear masks to avoid breathing toxic fumes. Enlightened Asian leaders are taking a very serious look at alternative fuel development, particularly electric transportation.

Philippines has already banned the use of Jeepney taxi fleets in downtown Manila, and 2 stroke scooters have been banned from major Chinese cities. Bangkok has severe pollution from 8000 Tuk-Tuks and dirty diesel buses and a king committed to cleaning up the environment. This presents an opportunity to offer electric transportation alternatives that are pollution free and reduce dependence on foreign oil.

Electric vehicles have always had limited acceptance due to range, which in a lead acid battery, is often under 50 miles (especially in cold weather). Zinc air batteries are the only electric energy source currently available in volume with a comparable range to gasoline vehicles.

Zinc Air Transportation intends to offer a comprehensive package of batteries, vehicles and infrastructure to targeted Asian countries. Major economic development benefits will result from in-country manufacturing of vehicles, buses, scooters and batteries. The Zinc Air Transportation energy system allows rapid exchange of batteries in a fueling station in less than three minutes.

This means it will be identical to the time required to "fill it up" with gasoline. Petroleum prices in much of Asia of $2 to $5 per gallon means zinc air batteries and electricity can compete directly with gasoline and diesel in many locations. Kummerow 1997 battery production is already as low as $300/kwh and is expected to drop to $100/kwh by 1998, which will be cheaper than any other electric vehicle battery.

Vehicle prices are also expected to be very competitive due to in-country manufacturing and high volume production. Unlike other zinc air systems, infrastructure requirements are also very inexpensive. Public and private groups have already expressed interest in assisting with rapid infrastructure development.

Zinc Air Transportation's global partnership demonstrates how a commitment to zero emission vehicles can lead to the development of advanced technologies that can provide major export and technology transfer opportunities. ZAT plans on producing prototype vehicles in New York State, which has stood firmly behind Zero Emission Vehicle mandates.

The transfer of technology and development of high volume production capabilities will provide an opportunity to offer the world affordable and practical electric vehicles, buses and scooters that are pollution-free and require no imported oil.

CONTACT: Bill Wason, 818/565-5555