Lithium Technology Corp. Signs Marketing Agreement for Advanced Motor Sports Applications

PLYMOUTH MEETING, Pa., Aug. 18, 2008 -- Lithium Technology Corporation ("LTC") (Pink Sheets: LTHU) and Hybrid Racing AG have entered into an agreement to market specialized lithium-ion batteries to power advanced vehicles for the motor sports industry. The applications will include batteries for cars, boats and planes to be used in consumer and professional racing vehicles.

After the successful integration of the plug-in hybrid electric vehicle ("PHEV") Apollo/HHF Hybrid Concept car ("HHCC") made by Gumpert and operated by Mr. Heinz-Harald Frentzen, President of Hybrid Racing AG and ex-Formula One (F1) racer and 1997 vice world champion, the parties concluded that there is an immediate need for LTC's unique and innovative products in the advanced motor sports world.

"This is another opportunity for LTC to demonstrate, as we have long believed, that racing plays a significant role in pioneering the use of new technologies, such as lithium ion batteries," commented Dr. Klaus Brandt, President and chief technical officer of LTC. "We have proven and will continue to prove the superior performance of our batteries under extreme conditions while taking the opportunity in this arena to exhibit the benefits and viability of our products to the traditional auto manufacturers."

The first race car utilizing LTC's advanced lithium ion battery, the HHCC, uses a 3.3 liter V8 bi-turbo petrol mill with a 100kW electric motor. The 9kWh GAIA(R) battery is made of 90 high power 27Ah connected in series and weighs about 150 kilograms. The battery includes an advanced battery management system (BMS) that transmits performance data via satellite for monitoring and enhanced performance control to the technical team. The battery is charged prior to races and recoups energy from braking during the race, as in PHEV mode. The electric range of the vehicle is approximately 50 kilometers. The HHCC was presented at the Formula-1 event at the Bavaria City racing event on August 17th next to Rotterdam, the Netherlands.

"After several months of hands-on experience with LTC's battery technology we are confident with their power and energy solutions and are excited to form an extended partnership with a company that will not only meet our battery needs, but will help motor sports to regain its position in the forefront of technical development and push the advancements of cars outside of the racetrack to be more energy efficient," commented Mr. Frentzen. "We are going to promote and market LTC's batteries to all vehicles that require advanced batteries that are light weight and powerful for improved performance."

The endorsement of Mr. Frentzen and Hybrid Racing AG proves the superiority of LTC's battery technology that is currently available. From racetracks to highways, to the depths of the ocean and up into space, LTC is powering the world in extraordinary ways. The Company manufactures a range of cells with two different types of lithium ion chemistries, iron-phosphate and nickel-cobalt. Both chemistries coupled with the company's innovative end-to- end manufacturing processes and proprietary design and assembly techniques, allow LTC to provide large high performance cells and batteries unmatched by any other product that are being used in the most demanding applications in the transportation, defense and stationary markets.