Electric Fuel Announces Electric Bus Test Drive Program to Commence in May; First Test Drives in New York, Followed by on-Road Drives in Nevada

    NEW YORK, May 1 Electric Fuel Corporation
today announced that the first set of test drives under its Phase 2 contract
with the Federal Transit Administration (FTA) for the development and
evaluation of a zinc-air electric transit bus will commence this month at a
test track in New York State.
    The Company also said that it expects to demonstrate the bus in its first
on-road demonstration drives in Las Vegas, Nevada, later this year.  Following
those drives, the bus is to be further upgraded by the integration of
ultracapacitors in the electric drivetrain, which is intended to improve
performance, efficiency and cost of operation.
    Electric Fuel said that the test-track drives are scheduled to continue at
least until the end of the summer, and will concentrate on evaluating the
operating performance of the full-length, 40-foot, battery-battery hybrid
electric transit bus developed and integrated under a previous FTA contract
covering Phase 1 of the program.
    During the course of the testing this summer, the Company hopes to show
that the bus meets all requirements for a transit bus, including range,
acceleration, and the ability to operate with power-consuming auxiliary
equipment such as air conditioning.  The test drives will include
constant-velocity driving such as is typical in suburban transit systems, as
well as urban stop-and-go driving cycles such as  the standard CBD-14 transit
duty cycle.
    Electric Fuel said that it will refuel the bus using a prototype mobile
refueling system developed with funding from the U.S.-Israel Bi-national R&D
("BIRD") Fund, and using fuel cassettes produced at its Bet Shemesh, Israel,
facility.  About 4 or 5 fuel cassette exchanges are expected during the course
of the summer's testing.
    The Zinc-Air Electric Transit Bus Program was initiated in late 1998 to
demonstrate the ability of Electric Fuel's patented zinc-air fuel cell system
to power a full-size, all-electric transit bus, providing a full day's range
for heavy-duty city and suburban routes, under all weather conditions.  At the
conclusion of Phase I in July 2000, Electric Fuel announced that it had
successfully completed the first actual driving tests of the bus.
Participation of the FTA in the 50% cost-shared, $2.7 million Phase 2 of the
program was announced in January 2001.

    About Electric Fuel
    Electric Fuel Corporation (http://www.electric-fuel.com), with corporate
and sales offices in New York and London, England, and manufacturing and R&D
facilities in Israel and Alabama, is a world leader in primary and refuelable
Zinc-Air fuel cell technology, pioneering advancements in consumer
electronics, electric vehicles, and defense and safety products.  Electric
Fuel's INSTANT POWER(TM) batteries and chargers are based on the Company's
patented, cutting-edge Zinc Air fuel cell technology, and are on sale at
retail outlets throughout the United States, Europe and Israel.

    Except for the historical information herein, the matters discussed in
this news release include forward-looking statements, as defined in the
Private Securities Litigation Reform Act of 1995. Readers are cautioned not to
place undue reliance on these forward-looking statements, as they are subject
to various risks and uncertainties that may cause actual results to vary
significantly. These risks and uncertainties include, but are not limited to,
risks relating to: product and technology development; the uncertainty of the
market for Electric Fuel's products; development and growth of anticipated
markets for Electric Fuel's products; market acceptance of new products and
continuing product demand; the ability to manage growth and ramp-up production
effectively as needed; the impact of competitive products and pricing on
Electric Fuel's products and markets; changing economic conditions; delay,
cancellation or non-renewal of purchase orders; significant future capital
requirements; and other risk factors detailed in Electric Fuel's most recent
annual report on Form 10-K for the fiscal year ended December 31, 2000, and
other filings with the Securities and Exchange Commission. Electric Fuel
assumes no obligation to update the information in this release. Reference to
the Company's website above does not constitute incorporation of any of the
information thereon into this press release.

    This release and prior releases are available on the KCSA Public Relations
Worldwide Web site at http://www.kcsa.com.

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