Astris Energi Plans Venture to Market Fuel Cell Power for Small Vehicles

    MISSISSAUGA, Ontario--Aug. 23, 2001--Astris Energi, Inc. (OTCBB:ASRNF), pioneers in alkaline fuel cell technology, announced today that Astris and ACE Golf Cars (www.acegolfcars.com), a division of ACE Concept, Inc., Indian Wells, CA, have signed a Letter of Intent covering establishment of a joint venture of other small vehicles.
    Under terms of the Letter of Intent, ACE proposes to finance the 50-50 venture with an initial investment of $1.5 million and be responsible for marketing and sales direct to the industry. Astris will contribute to the joint venture all the alkaline fuel cell technology it has amassed over the past dozen years and will assume major responsibility for the continued development of electric energy systems for a full range of small vehicles used to move both people and materials.
    According to the Letter of Intent, the joint venture is to be organized and fully operational within ninety days. Gordon Emerson, Chief Financial Officer of Astris, said the company is in discussions with other companies looking toward similar joint ventures covering other applications for its alkaline fuel cell technology.
    "We are pleased to enter into this relationship with Astris to bring about the inevitable changeover to fuel-cell powered Golf Cars and other low-speed vehicles using this exciting technology," said Robert Enriquez, President of ACE. "As a neutral party in the electric vehicle market, ACE has built strong relationships with major industry players and works closely with its Industry Leaders to promote the industry as a whole."
    ACE provides Industry Specific Resources for the Manufacturers, Dealers and Service Providers of the Golf Car, Industrial, Utility and Neighborhood Vehicle Industries. ACE also sponsors the annual Palm Desert, CA Golf Car Parade, the premier golf car industry event of the year.
    The contemplated venture stems from Astris' pioneering development of the world's first alkaline fuel cell-driven golf car, which has recently been demonstrated both in Canada and the U.S. The same system can drive vehicles used in airports, manufacturing plants, retirement communities and other places. Astris also has developed and field-tested a fuel cell system to provide electricity, heat and hot water for individual homes.
    Since fuel cells generates electric energy from the chemical combination of hydrogen gas and oxygen from the air, they are noiseless, odorless and emit no pollutants to the environment. Used in small vehicles, they will eliminate the noise and pollution of gasoline engines and the costly battery charging of electric vehicles.