Astris Energi, CareAction Venture Forms Operating Entity

    MISSISSAUGA, Ontario, Canada--Feb. 27, 2003--A new corporation, Astris Transportation Systems Inc. (ATSI), has been formed in Montreal, Quebec, as the operating entity of a $l5 million fuel cell development and production joint venture established last week by Astris Energi Inc., world leader in alkaline fuel cell technology, based here, and CareAction Inc., a diversified concern headquartered in the Montreal area.
    ATSI will soon initiate installation of the world's first automated facility for mass production of electric energy-producing alkaline fuel cell systems of Astris design, according to F. Lynnwood Farr, who has been named president and CEO of the new company. Negotiations are nearing completion, he said, for acquisition of a building especially suited for this operation.
    Farr was previously chief executive officer of General Dynamics Co. in Montreal and held various management positions with Canadair when it was a subsidiary of General Dynamics before its sale to the Canadian government. After serving as president and CEO of Vickers Shipbuilding with its 2,500 employees, in l992 he founded Care Transportation International, now CareAction Inc., which has become the North American leader in conversion of vans for senior citizens and the disabled. He has served this company as both CEO and chief of R&D, leading to a strong relationship with both the federal and Quebec provincial governments.
    Other officers of ATSI are Glenn R. Leduc, vice president, finance and chief financial officer, formerly head of the Canadian helicopter division of Textron Inc., and J. G. Gooch, corporate secretary, a business consultant. Initial directors of the new concern are Farr, Leduc and Jiri K. Nor, president and CEO of Astris Energi. Four additional directors will be named at a later date, Farr said.
    Nor, a pioneer in the development of alkaline fuel cell technology and currently the head of Astris Energi's technical R&D team, will also lead an R&D team to pursue research and development under contract to ATSI. Astris already has systems to power a variety of small vehicles and to provide electricity, heat and hot water for homes and businesses.

    NOTE: Any statement in this release that is not a statement of fact may be considered a "forward-looking statement" as that term is defined under federal security laws. Forward-looking statements are only predictions and may differ materially from actual events or results.