Key Capital Group Inc. - Successful Settlement Concerning The Petrovic Battery Charger Technology.

Business Editors

VANCOUVER, B.C.--(BUSINESS WIRE)--Mar. 16, 2001

KEY CAPITAL GROUP INC. (CDNX:KYC.)

Vladimir Petrovic, the Company's Director of Technical Research and the inventor of the rapid battery charging method and apparatus technology (the "Technology"), and the Company are pleased to announce that their disputes with Miroslav Jankovic and Dibit Pacific Inc. (the "Defendants") have been settled.

In August 2000, Mr. Petrovic commenced legal action in the Supreme Court of British Columbia against the Defendants alleging that, among other things, the Defendants had been improperly passing themselves off as owning the Technology.

The Technology is the subject of patent applications filed by the Company and Mr. Petrovic naming Petrovic as the inventor, as follows: a) United States Provisional Patent Application no. 60/144249, and b) International Patent Application under no. PCT/CA00/-00840.

The Defendants filed defenses and counterclaims against Mr. Petrovic and the Company and asserted interests in the Technology. The Defendants had nothing to do with the invention of the Technology. They asserted that they had agreed to be partners with Mr. Petrovic concerning, among other things, "certain computerized battery charging technology," and that the Company and Mr. Petrovic had conspired to deprive them of interests in "computerized battery charging technology," and breached contract and trust obligations.

The Company and Mr. Petrovic denied the allegations and counterclaims made by the Defendants and filed defences to them. As was reported in the Company's news release of September 5, 2000, management of the Company and Mr. Petrovic were of the view that the Defendants' defense and counterclaim were of no merit.

The Company initiated its own proceedings in the Supreme Court of British Columbia against the Defendants in September 2000 and arbitration proceedings in November 2000. Subsequently, in January 2001, the parties agreed that all disputes between them be referred to arbitration.

Under the terms of the settlement, Jankovic and Dibit have agreed to abandon all of the claims made by them in the litigation and arbitration proceedings initiated last year by Mr. Petrovic and by the Company. Further, as added confirmation that the matter is finally concluded, they have agreed to quitclaim and assign to Mr. Petrovic and the Company any and all interest that they claimed or may have had in the Technology and to release Mr. Petrovic and the Company from any and all claims actually made in the litigation and arbitration proceedings or that could have been made by them.

Nothing is to be paid to Jankovic or Dibit under the terms of the settlement. Each party is to bear its own costs. All claims made in the court and arbitration proceedings are to be dismissed on a without costs basis and the parties have agreed to share equally the costs of the arbitrator. The terms of the settlement are to be made part of the award of the arbitrator, by consent. The Supreme Court of British Columbia proceedings are all to be dismissed by consent order.

In the view of management of the Company and Mr. Petrovic, the settlement confirms the position of Mr. Petrovic as the inventor of the Technology and the rights of the Company as licensee and distributor of the Technology pursuant to the agreement with Mr. Petrovic formalized in 2000 and dated for reference July 19, 1999.

The Company expects that the resolution of this matter will enhance its ability to market the Technology and the value thereof. As has been stated in previous news releases, the Company has entered into license agreements with certain parties and discussions are also continuing with a number of other parties regarding licensing agreements or other strategic relationships.

ON BEHALF OF THE BOARD OF DIRECTORS OF KEY CAPITAL GROUP INC. Neil Huff, President

Certain statements in this press release are forward-looking in nature, and, accordingly, are subject to risks and uncertainties.

The actual results may differ materially from those described or contemplated.

The Canadian Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the content of this news release.