Dolphin ACI ``SuperCar'' and Volkswagen Jetta Compete Successfully in ``Michelin Challenge Bibendum 2001''

    SAN DIEGO--Nov. 9, 2001--BAT International Inc., announced that its partially owned subsidiary company, Dolphin Automotive Company Inc. (Dolphin ACI) , and its biodiesel fuel partner, American Bio-Fuels , have successfully participated in the "Michelin Challenge Bibendum 2001" an independent real world demonstration of the auto industry commitment to and progress in the development of environmentally innovative vehicles.
    The two vehicles together gained three silver medals, achieved high fuel efficiency in the rally segment of the event and showed significant reductions in emissions (the 2000 Volkswagen Jetta obtained a 50 percent reduction in particulates and a 10 percent reduction of NOx from use of LoNOxBioFuel). The biofuels team competed along with other major US auto companies in the event include Daimler Chrysler , Ford and General Motors , as well as other international companies including Honda, Hyundai, Nissan and Toyota.
    The greatest exposure and results were obtained during the road trip from the California Speedway in Fontana, Calif. to Las Vegas. Dolphin ACI 1995 General Motors Geo Metro, which had oversized tires and "Monster Metro" look, drew a lot of attention from participants and the media. Reporters from the BBC, Motor Age, Publico and other European journalists rode in the Geo Metro and were very impressed with the look and performance of the vehicle and its low emission "LoNOxBioFuel" biodiesel fuel. The vehicle stopped at a Burger King for a photo opportunity and the theme of "grease to fuel" generated a lot of excitement from the press. Furthermore, even carrying two passengers and going through lots of bumper to bumper motorcade stops and coffee breaks, the Dolphin ACI Geo Metro managed to achieve a fuel efficiency of between 60-70 miles per gallon.
    An equally important outcome of the event was the contacts made with various corporate participants in the event. Dolphin ACI and American Bio-Fuels had numerous discussions with freight companies, truck manufacturers and others to discuss market incentive mechanisms, technology development and other opportunities for cooperation. The president of American Bio-Fuels was a participant in the "Transportation Transformation" Conference where numerous policy options to stimulate interest in super-efficient vehicle technology and alternative fuels were discussed (for more information on American Bio-Fuels participation in Michelin Challenge Bibendum 2001, go to the news section at http://www.americanbiofuels.com).
    A successful showing in the Michelin Challenge Bibendum 2001 was a significant accomplishment in light of the limited time frame for preparing vehicles for the event. Dolphin ACI and American Bio-Fuels were not aware of the event until one month before the competition. Major technology improvements to the Dolphin Pulse Charge engine in the Geo Metro were underway and it was necessary to quickly wrap up research and get a high efficiency engine in the vehicle. Time constraints with getting gearing made for a new transmission required use of oversized tires to get the right gear ratio. This created a whole host of suspension, body and other engineering problems. The engine optimization effort was wrapped up literally hours before the vehicle was due at the track and the engine was put in the evening before emissions testing. As a result, there was no time for field tests and engine break-in. This caused a few problems with emissions testing and operation of the vehicle on the track. A secondary fuel filter from previous trials was mistakenly left in the fuel line and caused some problems with fuel flow. There were also alignment and front-end problems and injector rack adjustments that had to be made. These problems were partially corrected during the main day of trials at the California Speedway but required pulling out of several events and affected results in the fuel efficiency run around the track.
    The American Bio-Fuels Jetta entry did well in the efficiency competition receiving a silver award for its performance. However, the Dolphin ACI bio-fuel entry experienced difficulties with the unexpected and unusual design of the two-mile test track layout. The track included two sharp S-curves that required the vehicle to slow to 15-mph in the curves and then speed up to 90-mph in each lap of the track in order to average 55-mph (50-lap race).
    One important outcome of the competition is the accelerated pace of research on engine technology and results that were obtained from in-house dynamometer testing. Dolphin ACI underwent numerous test cycles evaluating the impact of various modifications to its Dolphin Pulse Charge technology. This resulted in excellent fuel efficiency results on the dynamometer at various rpm and load levels. The data will also allow Dolphin ACI to undergo design refinements to the balance of the drive system so that gearing is optimized for engine output. A new set of gears is being made for the transmission and other improvements to emission control equipment and vehicle design are also being completed. Normal sized high efficiency low rolling resistance tires will be added to the vehicle along with other design improvements to reduce drag and efficiency losses. Some emission control equipment including some proprietary technology will also be added to the engine to optimize emission results.
    Dolphin ACI is planning to undergo a set of follow up events to verify fuel efficiency and emission results from an optimized engine and vehicle configuration. Once in-house dynamometer and field tests and independent emission testing in test labs confirm fuel efficiency and emission goals have been reached, Dolphin is planning to take the Geo Metro to Salt Lake City to demonstrate the vehicle to state and city officials and the public in a highway field trial. This is expected to occur in early December and will help in efforts to incorporate alternative fuels in February when Salt Lake City is hosting the 2002 Winter Olympic Games.
    Dolphin ACI and American Bio-Fuels are very appreciative of all the efforts of the staff and team members that dedicated hundreds of sleep deprived hours of work to get the vehicles ready for the event. The companies are particularly appreciative of efforts of BAT shareholders that were at the Michelin Challenge Bibendum 2001. This included two diesel engine mechanics, a race car technician and a machinist who all volunteered their time and provided invaluable assistance in troubleshooting and solving mechanical and vehicle related problems in the Geo Metro. It was a job well done under extreme pressure.
    Dolphin ACI and American Bio-Fuels would also like to thank Michelin Challenge Bibendum 2001 for hosting a tremendous event. The entire event from the safety inspections and vehicle displays at AAA Corporate Offices in Los Angeles to track tests at the California Speedway and the rally to Las Vegas were all handled in a first class, professional manner. The event provided a forum for friendly competition that was very successful in bringing together auto and engine companies, technology developers, fuel suppliers and others to advance the state of clean, efficient vehicle technologies. We applaud Michelin for their sponsorship of the event, which had tremendous food, wonderful support from the event organizers and was a really great event to participate in. Dolphin ACI and American Bio-Fuels will seek to participate again in the Michelin Challenge Bibendum 2002, which is scheduled to occur in Fall 2002 in Paris, France.
    BAT International is organized as a holding company with major ownership positions in a set of subsidiary companies now commercializing advanced automotive and energy technology products. For more information, see BAT's Web site at http://www.baat.com or call Investor Relations 619/409-8977. Information about trading prices and volume can be obtained at several Internet sites including http://www.bloomberg.com under the ticker symbol "BAAT."