Electrosource HORIZON(R) C2M Batteries Provide Power Supply for Army's First Hybrid-Electric 'Humvee'

10 December 1997

     New Humvee Offers 'Stealth' Characteristics and Greater Performance

    SAN MARCOS, Texas, Dec. 10 -- Electrosource, Inc.
announced today that the Electrosource HORIZON(R) C2M
(co-extruded composite matrix) advanced-technology batteries are being used as
the electric power source in the U.S. Army's first prototype hybrid-electric
High Mobility Multipurpose Wheeled Vehicle (HMMWV) which was unveiled this
month in Huntsville, Alabama.
    Electrosource supplied 24 HORIZON C2M advanced-technology batteries for
the hybrid-electric HMMWV (Humvee) which was designed and built by PEI
Electronics, Inc. of Huntsville, Alabama.  The Humvee's four permanent magnet
motors were designed and built by Unique Mobility, Inc. of Golden, Colorado.
    When using the HORIZON C2M batteries in the all-electric operating mode,
this combat vehicle offers enhanced performance characteristics; nearly silent
running at low speeds; and "stealth" characteristics since its "thermal
signature" makes it virtually impossible to detect using infrared sensor
technology.
    Electrosource Chairman, President and CEO, Michael G. Semmens, said, "We
are pleased to be an integral part of the team that has developed this advance
that could be important for the Army's future combat vehicles.  Electrosource
batteries were selected for this prototype vehicle because HORIZON C2M
technology offers the required high power-to-weight advantage at an affordable
cost.  We believe this collaborative venture has produced a solid success for
military and commercial applications."
    In a testament to the team's combined efforts, this ultra-rugged prototype
combat vehicle doubles the acceleration and climbing capabilities while
maintaining the same gross weight as a conventional HMMWV.  It can accelerate
from zero to 50 in 8 seconds and climb a 60 percent grade at 17 miles an hour.
Also, it maintains the 300-mile range of the conventional Humvee, but at twice
the fuel economy.  It doesn't require expensive charging infrastructure since
the HORIZON C2M batteries are charged by the diesel generator during
operation.
    The first hybrid HMMWV will be delivered to the Tank-Automotive and
Armaments Command (TACOM) in late February 1998 where it will undergo
additional field testing.  If the performance capabilities of the hybrid
Hummer continue to be proven by the Army, it could also be available for
future commercial use by police, city and state governments; government and
industrial security agencies; the Red Cross and others.
    The hybrid-electric HMMWV project is funded in part by DARPA (Defense
Advanced Research Projects Agency), through the Atlanta-based Southern
Coalition for Advanced Transportation (SCAT).
    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.
    This release contains forward-looking statements regarding future product
development and sales growth that involve risks and uncertainties.  Actual
results could differ materially from those discussed in this release.  Risks,
including manufacturing risks, risks of product development and uncertainty of
market acceptance, as well as others, are detailed from time to time in the
company's Securities and Exchange Commission filings.

SOURCE  Electrosource, Inc.