Lithium Technology Corporation Receives Orders For Advanced Prototype Automotive Batteries

PLYMOUTH MEETING, Pa., July 8 -- Lithium Technology Corporation, ("LTC," "the Company") (BULLETIN BOARD: LITH.OB) , an early production stage rechargeable lithium battery manufacturer, today announced that its GAIA operating units have received firm purchase orders for high performance lithium-ion prototype batteries for transportation applications from two different customers.

LTC's GAIA U.S.A. unit at Plymouth Meeting, PA, has received a purchase order from Penn State University for a 180-Volt prototype Hybrid Electric Vehicle (HEV) battery for an advanced truck application that the University intends to enter into the Future Truck Competition in June 2004. The US DOE sponsors the Future Truck program and the annual competition to promote the development of fuel-efficient vehicle technology. This prototype battery will be comprised of 50 of the Company's proprietary 27 Ah flat cells, along with a Battery Management System (BMS), and will provide about 70kW of power, which is a substantial improvement over the heavier lead acid battery system that it will replace. Delivery is scheduled for September 2003.

LTC's GAIA Europe unit at Nordhausen, Germany, has received orders for several advanced automotive batteries from a world-renowned car manufacturer. One of these prototypes is a unique 12-Volt auxiliary power source to be housed in a thin panel. LTC's proprietary large-format flat cell technology and stainless steel flat pack configuration readily met the customer's OEM specifications with a battery having a 20 Ah capacity in a case measuring 12.5 inches (315mm) by 7.9 inches (200mm) by 1.2 inches (30mm). The other prototypes are nominal 12-Volt SLI (starting-lighting-ignition) batteries using the Company's proprietary 27 Ah cylindrical cells measuring 5.1 inches (130mm) by 2.4 inches (60mm) in diameter. These batteries will provide up to 9kW of starting power. Initial delivery is scheduled for August 2003. In addition, LTC will supply a Battery Management System (BMS) for each of the prototypes. The batteries will undergo extensive testing by the OEM. Previously, in September 2002, GAIA Europe delivered a prototype 42-Volt automotive battery to BMW as part of the Astor program, a consortium of seven European automakers evaluating new power sources. That battery remains on test in Europe.

Dr. Franz Kruger, President and Chief Operating Officer of LTC, said, "These orders represent another important milestone in our ongoing initiatives to have transportation industry OEMs test and qualify our advanced large format batteries which can deliver high-rate, high-capacity, low temperature operations and long cycle life. The Penn State opportunity represents the first in-vehicle demonstration of LTC's automotive battery prototypes and we are pleased to be the University's first choice for a lithium-ion solution."

LTC, with operating locations in Plymouth Meeting, PA, and Nordhausen Germany, is sampling customers in the U.S. and Europe with its unique large format prototype batteries for a variety of national security, stationary power and transportation applications. The Company's battery products carry the GAIA brand name and trademark.

The foregoing information contains forward-looking statements which involve risks and uncertainties relating to such matters as financial performance, technology development, capital raising, business prospects, strategic partnering and similar matters. A variety of factors could cause LTC's actual results and experience to differ materially from anticipated results or other expectations expressed in these forward-looking statements. This notice does not constitute an offer of any securities for sale.