BAT Press Release: First U.S. Zinc Air Cell Field Tests Complete

08/08/96

FIRST PRODUCTION ZINC AIR CELLS TESTED IN UNITED
STATES

BURBANK, Calif., July 30 via Individual Inc. -- BAT
International (OTC: BAAT) has just completed testing the first
production zinc air electric vehicle battery cells. These cells were
rated at a whopping 400 amp hours. The tests provided significant
evidence that the Kummerow Zinc Air production batteries were
performing to the same specifications as the prototype batteries
tested in Germany. As a result of these tests, BAT Int. ordered 600
production cells for expected delivery in December, 1996. B.A.T. will
complete an electric vehicle (EV) with these batteries for testing in
late 1996 or early 1997. The field tests are expected to confirm that
the batteries in a production EV can achieve a range of over 250 miles
using a very inexpensive ($150/kwh) long life battery.

The first production cells were tested at B.A.T. facilities at
CALSTART in Burbank, CA under the direct supervision of Arne Nilsson,
a world renowned battery expert. Mr. Nilsson has extensive experience
in battery manufacturing and testing from decades of executive
experience in large battery production facilities including SAFT,
NIFE, etc. This experience was used to develop proper test protocols
for the production cells.

On July 15, 1996 BAT Int. and Kummerow, NA entered into a joint
venture to commercialize the new zinc air batteries for electric
vehicles. As a result of this agreement, BAT acquired exclusive
manufacturing and distribution rights in North America and has options
it can exercise worldwide. In addition, BAT has acquired 20% of the
Kummerow Corporation of North America. Kummerow is a leader in
alternative fuel technology in Germany, including a joint project with
Mercedes to test biofuel systems in taxis. Several million dollars in
public & private funds were used to develop the battery. Kummerow
holds worldwide license & distribution rights except Europe.

The Kummerow zinc air battery has four times the energy density of a
lead acid battery and an energy density 50% greater than nickel metal
hydride batteries, at an expected cost of less than a sealed lead acid
battery. The battery can be commercialized in the next year and will
provide a low cost battery for fleet applications.

Unlike other zinc air battery systems, the Kummerow system uses a very
simple refueling technology that will allow refueling in 5-10 minutes
at a minimal cost. A mini-station costing approximately $10,000 will
refuel batteries on a day to day basis to 95% capacity. Two to four
times a year a $250,000 mobile station with capacity to service many
locations will refuel the battery packs to maximum capacity. The used
zinc is recovered by an electrolysis process that can be scheduled in
off-peak hours when there is surplus electric capacity. This simple
system contrasts sharply with the high cost of other zinc air
refueling systems. BAT and Kummerow have also developed a unique
multiple battery system to insure zinc air powered electric vehicles
match the performance of ordinary gasoline vehicles in terms of
acceleration, top speed & range at a very competitive price.