Electrosource Inc. Announces New Financing Agreement

    SAN MARCOS, Texas--April 24, 2001--Electrosource Inc. ("the Company") announced today that a special meeting of its Board of Directors (the Board) resulted in the Board's approval of a new financing agreement with its majority shareholder, Kamkorp Ltd. (Kamkorp), a private holding Company headquartered in the United Kingdom.
    Under terms of the new agreement, on or before April 30, 2001, Kamkorp will complete its purchase of the remaining 1,773,624 shares of a five-year option granted to Kamkorp in June 1998 to purchase three million (3,000,000) shares of Electrosource Inc. common stock at par value ($1.00).
    The agreement further grants Kamkorp a new option to purchase an additional three million (3,000,000) shares of Electrosource Inc. common stock at par value ($1.00). The new option term is ten (10) months and becomes effective upon the Company's receipt of funds from Kamkorp's timely purchase of the 1,773,624 shares.
    The new option provides for Kamkorp to exercise its rights to purchase the Company's common stock at a rate of not less than three hundred thousand (300,000) shares per month beginning May 30, 2001, and continuing for ten (10) months through Feb. 28, 2002.
    "This new agreement with Kamkorp will allow the Company to recall workers furloughed earlier this year and commence limited battery production immediately," said B.E. Jay, Electrosource Inc. president and CEO. "Obviously we are pleased at Kamkorp's continuing support of our efforts to manufacture the Company's advanced battery products," Jay continued.