Lithium Technology Corporation Receives Orders From Two Transportation Sector Customers

PLYMOUTH MEETING, Pa., Aug. 5, 2003 -- Lithium Technology Corporation, ("LTC", "the Company") (BULLETIN BOARD: LTHU.OB) , a leading participant in the rapidly emerging large-format rechargeable lithium battery market, today announced that a leading U.S. developer of Electric Vehicles (EVs) has placed an order for the Company's high-rate 10 Amp-hour cells for use in an auxiliary 36-Volt battery on its electric bike platform. The customer has a requirement for up to 5,000 electric bike batteries through 2004, which could result in a contract with a total value of up to $2 million.

The customer intends to address both the commercial and National Security markets for electric bikes and larger EV applications, and in this regard, is interested in the full range of flat and cylindrical batteries offered in the Company's GAIA product line. For this particular electric bike application, the combination of high rate (up to 50 Amp) and thin, flat form factor was judged by the developer to be the best match.

The Company also received a firm purchase order for its GAIA brand 27Ah high-power, flat batteries from a large systems integrator of heavy-duty Hybrid Electric Vehicles (HEVs), after having demonstrated advantages of the battery technology at the customer's test lab. This customer, a division of one of the world's largest companies, is interested in replacing nickel metal hydride and lead acid batteries with lithium ion batteries for its heavy-duty HEV platforms including bus, truck, military vehicle and locomotive applications. LTC's technology provides superior heat removal in conjunction with exceptionally low heat generation, a combination that offers the potential to eliminate the need for expensive cooling equipment and associated operating costs that traditionally have been required in these heavy-duty HEV applications. In addition, these outstanding thermal characteristics and the robust design of the high-power electrodes enable LTC's batteries to operate at lower temperatures, which will extend battery cycle life. The thermal and cell design benefits, along with the usual performance characteristics of lithium ion, are expected to make the life cycle cost of LTC's batteries lower than those of the older battery technologies in volume production.

According to Ron Turi, Director of Product Development and Applications for GAIA USA, "These and similar orders reflect our strategy of working closely with early adopters to implement our leading edge battery technology in the rapidly emerging market for large vehicle HEV platforms, including those for the military." Our powerful GAIA batteries are ideally suited for many transportation applications, where space is at a premium and good acceleration is required.

LTC, with GAIA operating locations in Plymouth Meeting, PA and Nordhausen, Germany, is providing 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.