Axion Power Licensed to Produce Batteries for Vintage Ford Muscle Cars

NEW CASTLE, Pa., Aug. 2, 2007 -- Axion Power International Inc (OTC Pink Sheets: AXPW), a supplier of lightweight, quickly rechargeable and lead-reduced lead-acid batteries, said today that it has expanded the brand horizons of its Specialty Battery business, which concentrates on race-car batteries and batteries for vintage or collector cars. The Company said it has signed a licensing agreement with the Ford Motor Company that authorizes it to produce and market replacement batteries for vintage Ford "muscle" cars using the Ford brand name.

CEO Tom Granville commented, "Axion Power has a new technology for batteries that will, we believe, improve the functionality and utility of lead-acid batteries for multiple applications. But we also have a high respect for the past, and our specialty battery division makes the finest 'old style' (and sometimes only) replacement batteries for vintage cars. We have the molds and brandings that precisely duplicate the original vintage car equipment. Inside the replicated case is our maintenance- free AGM battery with all the cold cranking power properties of a 21st century battery line product. We are very pleased to have expanded our horizon with this license from Ford Motor Company."

Axion Power took over an existing but defunct lead-acid battery plant in New Castle, and has steadily expanded its output and employment, in a reversal of a long-term trend toward offshore suppliers. Its new technology offers a superior approach to rechargeability, deep cycling, and reduces weight and lead content, while extending battery life significantly. Axion looks forward to supplying batteries for wind and solar power storage applications, electric grid buffering, building UPS, telecom, traditional motive power, and new hybrid electric vehicles. It believes other market opportunities will follow.