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ECOtality, Inc. Acquires Electric Transportation Engineering Corporation (eTec)


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SCOTTSDALE, Ariz.--ECOtality, Inc. (OTC BB: ETLY), a renewable energy company that acquires and commercially advances clean electric technologies and applications, today announced that it has acquired Electric Transportation Engineering Corporation (eTec) and its affiliated companies for $6.25 million in cash and stock. Specializing in the fields of alternative-fuel, hybrid (HEV) and electric vehicles (EV) and infrastructures, eTec is a recognized leader in the research, development and testing of advanced transportation and energy systems. The company also developed and holds exclusive patent rights to the eTec SuperCharge™ - a smart fast-charging system that extends battery life without the destructive effects of overcharging. As of November 6, 2007, eTec will operate as a subsidiary of ECOtality; there will be no changes to the company’s management team.

The acquisition of eTec, combined with the previous announced acquisitions of Innergy Power Corporation and Fuel Cell Store, will provide ECOtality a revenue base of companies having combined trailing twelve month revenues of $9.39 million as of September 30, 2007. To continue to execute the company’s strategic growth plan and to complete the eTec acquisition, ECOtality successfully raised $3.5 million of capital from institutional investors.

“The acquisition of eTec allows us to further grow financially, technologically and strategically in the areas of clean energy creation, storage and delivery,” said Jonathan Read, president and CEO, ECOtality. “Through successful execution of our strategy to acquire and commercially advance revenue-generating companies and technologies such as eTec, ECOtality has become a diversified renewable energy company that will be a leader in changing the way we consume energy. With major automakers and federal agencies focused on advancing hybrid and plug-in electric vehicles, eTec’s expertise in transportation, electrical infrastructure and industrial fast-charge systems expands our presence in the consumer market.”

Benefits of the eTec acquisition include:

  • eTec, which has existing contracts with public and private entities through 2009 worth approximately $11.5 million, will provide significant revenues for ECOtality.
  • eTec’s experience in developing hydrogen powered vehicles and refueling systems provides tremendous synergies that will benefit the development of Hydrality – an on-demand hydrogen production and storage technology.
  • eTec, which designed, manufactured and installed public, commercial and residential recharging systems for the GM EV-1, Chrysler EPIC, and Ford Ranger electric vehicle programs, will position ECOtality as a leader in electric and hybrid electric vehicles and infrastructure. According to Frost & Sullivan, the HEV and EV battery market is expected to grow at a compound annual growth rate (CAGR) of 14.8 percent from 2006 to 2013. The market grew 25.9 percent from 2005-2006.
  • eTec’s contacts and relationships with major automotive manufacturers, international government agencies and leading research institutes provide a direct link to market trends, emerging technologies, new products and technologies and additional research and funding opportunities.
  • eTec will assist in identifying new applications and expanding ECOtality’s subsidiary Innergy Power Corporation’s ThinLine battery products.
  • With access to ECOtality’s manufacturing facility in Tijuana, Mexico, eTec can explore increasing the development and manufacturing of eTec SuperCharge components and systems.
  • eTec will provide ECOtality with resources for expansion and integration of energy solutions and applications for solar, hydrogen and electric systems.
  • eTec creates an immediate leadership role for ECOtality in battery and charging industries.

Specifically engineered for airport ground support equipment, neighborhood electric vehicle operations, and marine and transit applications, the exclusively patented eTec SuperCharge is based on advanced algorithms that allow faster charging with less heat generation and longer battery life than any other fast charge system available. Using the eTec SuperCharge, airports and airlines can convert from diesel and propane ground support equipment to clean electric systems that produce zero emissions. Currently installed in 12 major airports in North America, there are more than 300 eTec SuperCharge systems in daily operation that service more than 1,000 electric ground support equipment.

“The acquisition by ECOtality provides eTec the ability to increase our operations in the research, testing and development of alternative-fueled and electric energy systems and infrastructures,” said Don Karner, president, eTec. “As one of the few players in the fast-charge battery market, we recognize the shift in the transportation industry towards more electric dominant power systems. The acquisition by ECOtality provides us the opportunity to aggressively expand the market share of the eTec SuperCharge system and explore additional markets and applications such as plug-in hybrid electric vehicles, pure electric vehicles and their respective infrastructures.”

Founded in Phoenix, Arizona in 1996 to support the development and installation of battery charging infrastructures for electric vehicles, eTec focuses on several areas related to electric and alternative-fuel transportation including:

  • Battery performance testing.
  • Testing and consulting of HEV, plug-in hybrid electric vehicles (PHEV), EV and hydrogen vehicle fleet.
  • Design and installation of electric vehicle charging stations for public access, commercial fleets, and residential applications.
  • Design and construction of alternative-fuel infrastructure (including electric, compressed natural gas (CNG)/hydrogen-blended fuels and pure 100 percent hydrogen).
  • Development of hydrogen-powered internal combustion engine (ICE) Silverado trucks and refueling stations.
  • Vehicle testing and failure analysis for automotive companies and U.S. Department of Energy.
  • Development of lithium and nickel-metal hydride batteries.
  • Consulting and technical support for coal gasification and hydrogasification projects.

Products currently offered by eTec include the eTec SuperCharge fast charge system, EV battery chargers, EV traction batteries, hydrogen and CNG blending fuel dispensers and hydrogen ICE vehicle conversions. eTec’s clients include major automotive companies, international airlines and airports, public utilities, leading research institutes, and federal government organizations, including the U.S. Department of Transportation and the U.S. Department of Energy. For more information about eTec, please visit www.etecevs.com.

About ECOtality, Inc.

ECOtality, Inc. (OTC BB: ETLY), headquartered in Scottsdale, Ariz., is a renewable energy company that acquires and commercially advances clean electric technologies and applications. ECOtality aggressively accelerates the development of companies and technologies that address today's global energy challenges. Through strategic acquisitions, partnerships and technology innovations, ECOtality strives to advance the market applicability of clean electric technologies to become accepted alternatives to carbon-based fuel technologies. For more information about ECOtality, Inc. please visit www.ecotality.com.