Power Technology Develops a Strategic Alliance with Key Capital Group.

Business Editors

LAS VEGAS--(BUSINESS WIRE)--May 8, 2002

Power Technology Inc. (OTC:PWTC) is pleased to announce the formation of a strategic alliance with Key Capital Group.

A Memorandum of Understanding has been negotiated between the two corporations defining the tasks needed in the development of an "Energy Package" targeted towards the emerging "Electric Bike Market." The focus of this joint development program will be to integrate the advanced lead acid technology, developed by Power Technology and the Accelrate(TM) charger technology into one package.

"The synergy created between these two technologies will allow us to develop a unique energy package," stated Mr. David McLeod, chairman of Key. "The benefit to the end user will essentially be twice the distance in the same volume and weight and with a two hour full charge time."

Mr. Lee Balak, President of Power Technology said, "The marriage of these technologies is exactly what the market place is looking for. Product launch is anticipated within the next twelve months. We are excited about this opportunity and look forward to a mutually beneficial relationship."

Power Technology Inc. is a Nevada Corporation trading on the NASDAQ -- OTC Bulletin Board, engaged in the development of advanced battery technology.

Power Technology has developed a lead acid battery that will be substantially lighter than the conventional lead acid batteries, have a quicker recharge rate, be more cost effective and will be more environmentally friendly. Power Technology's concept of increasing output or current is directly related to the surface area of the electroplates exposed to the electrolytes. The mechanical structure of the battery is altered so that the surface area of the electroplates may be increased by a factor of up to 1,000 times the surface area of conventional batteries. This increase in surface area of the electroplates will increase the current and at the same time will:

(a) reduce the weight of the battery by 30 to 50% of existing

batteries;

(b) reduce the cost of the battery by employing a different metal

or alloy;

(c) make the battery much more environmentally friendly by

changing the alloy and or changing the chemistry to create the

current and minimizing materials.

Key Capital Group Inc. is a Canadian public corporation listed on the TSX Venture Exchange (formerly) the Canadian Venture Exchange. Key Capital has developed a "Charger Protocol" designed to be integrated into an existing transformer type charger or into a new "soft switching power conversion charger" allowing each of these charger types to be used as a "Fast Charger." The conversion of these standard charger types to a fast charger is accomplished without the negatives associated with "Fast Charging" protocols. This proprietary technology is called Accelrate(TM).

This release includes projections of future results and forward looking statements as that term is defined in section 27A of the Securities Act of 1933 as amended and Section 21E of the Securities exchange Act of 1934 as amended. All statements that are included in this release, other than historical fact, are forward-looking statements and are reasonable; it can give no assurance that such expectations will prove to have been correct.