Lithium Technology Corporation Ships Second Advanced Automotive Battery to European Astor Consortium

Superiority of Company's Batteries Continues to Attract Leading Automotive Companies

PLYMOUTH MEETING, Pa., Jan. 28 -- Lithium Technology Corporation, ("LTC", "the Company") (BULLETIN BOARD: LTHU) , a leading participant in the rapidly emerging large-format rechargeable battery market, today announced the delivery of a second prototype lithium ion polymer battery to the European Astor consortium under terms of a firm purchase order. The 42-Volt module, produced by the Company's GAIA operating unit in Nordhausen, Germany, has been delivered complete with a battery management system and is to be tested for use in a Hybrid Electric Vehicle (HEV) propulsion system. The first 42-Volt prototype supplied to the Astor consortium eighteen months ago continues to undergo testing for use in future 42-Volt onboard networks.

The "Astor Project" (Assessment and Testing of Advanced Storage Systems for Propulsion and other Electrical Systems in Passenger Cars) comes under the auspices of the European Union and the Astor consortium consists of seven European auto manufacturers: VW, BMW, DaimlerChrysler, Opel, Fiat, Volvo and Peugeot). In this case, the objective is to assess the suitability of lithium-ion polymer batteries for use in HEVs. Within the consortium, BMW is responsible for procuring and testing of the battery system at an independent testing institute.

HEVs feature a conventional internal combustion engine operating in tandem with a battery-powered electric motor. This combination reduces fuel consumption significantly without sacrificing rapid acceleration. The HEV battery systems must be able to perform effectively over the entire temperature range from sub-zero winter conditions to searing summer heat.

"The next generation of rechargeable lithium ion polymer batteries will largely supercede other conventional batteries in the HEV propulsion systems of the future," said Franz Kruger, LTC's President and Chief Operating Officer and CEO of the German subsidiary GAIA Akkumulatorenwerke GmbH in Nordhausen, Germany. "Our large-format lithium batteries have demonstrated their superiority over conventional systems in automotive applications."

LTC produces unique large-format rechargeable batteries under the GAIA brand name and trademark. The Company supplies a variety of military, transportation and back-up power customers in the U.S. and Europe from its two operating locations in Plymouth Meeting, Pennsylvania and Nordhausen, Germany. For additional information on the Company's technology and products, please visit www.gaia-akku.com.