Electrosource Horizon(R) C2M Powered Vehicle Wins Monte Carlo Rallye Event

6 November 1997

    SAN MARCOS, Texas, Nov. 6 -- Electrosource, Inc.
, announced today that an electric version of a Piaggio Porter,
powered by HORIZON(R) C2M batteries won first place in the Energy Usage
Category in the prototype class and second overall in the Third Annual Monte
Carlo Rallye of Electric Vehicles.
    The energy usage category rates the efficiency of the battery pack.  A
more efficient system saves money in fuel (or battery kilowatt hours).  The
Porter, a small delivery truck manufactured by Piaggio V.E. SpA, was powered
by 20 production HORIZON C2M (co-extruded composite matrix) batteries during
the challenging 215-mile course from October 16-18.
    Climbing steep hills with hairpin curves under rigid time schedules
challenged the Piaggio Porter which traveled with 38 state-of-the-art
international competitors.  Battery technologies tested under the strenuous
conditions included lead-acid, nickel cadmium, and nickel-metal hydride.
Electrosource batteries are composed of advanced lightweight composite
materials creating a high specific power/high specific energy combination.
    Another electric vehicle, the FIAT Cinquencento, also used Electrosource
batteries during the Rallye.  This small two-seat commuter also benefited from
HORIZON C2M battery efficiency.  The driver, Piero Rissone (one of FIAT's
leading race drivers), said he was very impressed with the acceleration,
power, and range provided by these advanced batteries.  Electrosource is
designing electric vehicle battery packs with a charge management system for
FIAT Auto, of Italy.
    "The results of this event present another example that our HORIZON C2M
technology is not only cost efficient, but also competitive with advanced
electro-chemical batteries on a performance basis," said Electrosource
Executive Vice President of Marketing, Bill Griffin, who was on site for the
Rallye.  He added that the HORIZON C2M powered vehicles completed each event
segment with ample power and energy to spare.  "We were fortunate to team with
Piaggio and FIAT -- two leaders in minimum environmental impact technology.
These customers were very pleased with the overall performance of our
batteries, and we generated interest in Electrosource products from new
sources."
    The Monte Carlo Rallye brought together the European leaders of electric
propulsion.  An organizer for the Monte Carlo Rallye commented that electric
vehicle performance has greatly improved since the event began three years
ago.  He added, "These efficient vehicles are gaining international appeal in
their ability to provide a clean alternative to internal combustion vehicles
in cities suffering from pollution."
    Electrosource, headquartered in San Marcos, Texas, designs, manufactures
and markets proprietary advanced energy storage technologies and systems.
Additional information about the company is located on the internet at
http://www.electrosource.com .
    Statements regarding future product development and sales growth are
forward-looking statements that involve risks and uncertainties that could
cause actual results to differ materially from those set forth in the forward-
looking statements, including delays in shipment or cancellation of orders,
timing of future orders, customer reorganization, fluctuations in demand and
the other risks detailed from time to time in the Company's reports which are
filed with the Securities and Exchange Commission.

SOURCE  Electrosource, Inc.