Electro Energy Advanced Technology to Power Hybrid Electric Vehicles for CalCars' PRIUS+ Program

DANBURY, Conn., Oct. 20, 2005 -- Electro Energy Inc. , a leading provider of advanced battery technologies and associated systems, today announced it is developing a custom-designed prototype battery pack for CalCars' Toyota PRIUS+ Test Vehicle, which is the centerpiece of the California Cars Initiative (CalCars) program promoting the commercial use and mass production of plug-in hybrid electric vehicles (PHEV).

CalCars' PRIUS+ project retrofits Toyota's Prius, the nation's most popular hybrid car, with a high-energy content battery, which becomes the vehicle's primary power source for local travel, eliminating the use of gasoline for short trips. For longer trips, the car can revert to conventional hybrid operation, which uses a combination of gasoline and battery power. The battery can be recharged at off-peak hours, further supporting energy conservation.

Explaining why he initiated collaboration with EEEI, Ron Gremban, the lead technologist on CalCars' PRIUS+ project, stated, "Electro Energy's prototype pack has lower internal resistance than the Prius' original hybrid battery, meaning higher power availability and lower energy losses. It is expected to improve average typical mixed-driving gasoline consumption and range performance to 90 mpg plus electricity for the first 40-50 miles after each charge, without compromising the Prius' original performance of 45 mpg."

CalCars' goal is to spur mass adoption of efficient, non-polluting automotive technologies. The project aims to demonstrate solutions to reduce dependence on imported fuel and to reduce production of automotive greenhouse gases. CalCars believes PHEVs bridge the gap between hybrids and zero- emission vehicles using proven technologies.

Felix Kramer, founder of CalCars, added, "Electro Energy and CalCars are demonstrating that Ni-MH type batteries, already in use in hundreds of thousands of hybrid cars, can be an immediately effective solution for PHEVs. We also hope to demonstrate EEEI's batteries on other vehicle platforms."

Martin Klein, Chairman and CEO of EEEI and an internationally recognized expert in the battery, fuel cell, and energy fields, stated, "Plug-in hybrid electric vehicles have been proposed by a number of scientists and engineers over time. However, a number of dynamics have shifted to raise their consideration. These factors include:

  1. Practical production of hybrid power trains as exemplified by the
     Toyota Prius,
  2. The increasing price of oil and the political instability of oil
     supply,
  3. The mounting evidence of global warming and initiatives to reduce green
     house gas emissions, and
  4. The development of advanced rechargeable batteries such as EEEI's
     bipolar nickel-metal (BP-NiMH) battery."

Mr. Klein further stated, "The deployment of large numbers of plug-in hybrid electric vehicles have the potential to have a revolutionary impact on the energy-economic-environmental equation, as Senator Joseph Lieberman recently made clear. CalCar's prototypes are an important step toward convincing automakers to mass-produce plug-in hybrid electric vehicles."

Senator Lieberman (D-Conn.), in a Georgetown University speech on October 7, 2005, unveiled a package of legislative proposals to reduce U.S. oil consumption and achieve a mandated 10 million barrels in oil savings in 20 years. The proposals include an aggressive strategy for promoting the use of hybrid electric vehicles and plug-in hybrids. (Further information is available at http://lieberman.senate.gov/.)

Discussing the advantages and future of EEEI's technology, Michael Reed, President and COO of EEEI, said, "Electro Energy's bipolar design is based on flat wafer Ni-MH cells stacked together under pressure in sealed modules. This patented technique has resulted in higher power and energy densities for the Ni-MH chemistry and results in reduced weight, volume and costs, with increased performance. EEEI intends to introduce this advanced technology to the automotive market for advanced hybrid and plug-in hybrid battery systems."

About Electro Energy Inc.

Electro Energy Inc., headquartered in Danbury, Connecticut, was founded in 1992 to develop, manufacture and commercialize high-powered, rechargeable bipolar nickel-metal hydride batteries for use in a wide range of applications. Its Colorado Springs operation supplies aerospace-grade high quality nickel cadmium batteries and components for satellites, aircraft and other specialty applications. EEEI is also developing high power lithium rechargeable batteries utilizing the Company's proprietary design. In May, EEEI announced plans to acquire significant manufacturing assets near Gainesville, Fla., by the end of 2005 to accelerate commercialization of its battery technology.

About CalCars

The California Cars Initiative (http://www.calcars.org/) is a non-profit technology development and advocacy startup formed by a group of entrepreneurs, engineers, environmentalists and consumers to jump-start the market for plug-in hybrids. CalCars has built prototype PHEVs and is harnessing the collective vision and purchasing power of individuals and corporate and government fleets. CalCars aims to engage major car makers to produce plug-in versions of existing sedans and SUVs.