Balqon Corporation Releases Lithium-Ion Battery Powered Drayage Truck for Extended Range Applications

HARBOR CITY, Calif.--Balqon Corporation (OTCBB:BLQN), an emerging developer and manufacturer of zero emissions heavy-duty electric vehicles for Class 7 and Class 8 applications, today announced the release of lithium-ion batteries as an alternative to lead acid traction batteries for its entire product line of Class 8 yard tractors and drayage vehicles.

In May 2009, Balqon received a $400,000 grant from the Port of Los Angeles to install lithium-ion powered battery packs in its yard tractor and drayage truck products. In June 2009, Balqon completed assembly of a Nautilus E30 retrofitted with lithium ion battery packs. Initial testing of this Nautilus E30 demonstrated a range of over 150 miles on a single charge under unloaded conditions at 80% depth of discharge. The new lithium-ion battery packs include the Company’s battery management system which allows batteries to be fast charged and self equalize during idle operation.

“A public/private partnership among the Port of Los Angeles, the South Coast Air Quality Management District and Balqon that began in May 2007 to demonstrate 25 mph, 30 mile range zero emissions vehicles with a 30 ton capacity has now reached mainstream cargo transportation applications in a short two year time period,” said Mr. Balwinder Samra, President and CEO of Balqon Corporation. “The speed of innovation in battery, charger and propulsion technology has accelerated with increased demand for electric vehicles during the past year,” he added.

Balqon recently signed an agreement with Autocar, LLC to collaborate on the development, marketing and sale of on-road Class 7 and Class 8 zero emissions electric trucks to be used in short haul drayage and trash hauling applications. Examples of the vehicles that may be developed in collaboration with Autocar include refuse haulers, refueling trucks and construction vehicles for use in short haul drayage applications at ports and cargo transportation in inner city applications.

About Balqon Corporation

Balqon Corporation is a leading developer of heavy duty electric trucks, tractors and electric drive systems. The Company uses its proprietary flux vector control technology to design propulsion systems for 10 to 50 ton capacity vehicles and material handling equipment. Balqon Corporation’s current product line of tow tractors are designed to transport containers at ports, marine terminals, rail yards, warehouses, intermodal facilities, military bases and mail facilities. For information about Balqon Corporation and its product offerings, visit www.balqon.com. Balqon Corporation’s common stock is eligible for trading on the OTC Bulletin Board under the symbol “BLQN.”

Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995

With the exception of historical information, the matters discussed in this press release, including without limitation, Balqon Corporation’s ability to incorporate lithium-ion batteries into vehicles in its existing product line, the increased range of vehicles equipped with lithium-ion batteries, the commercial viability of vehicles equipped with lithium-ion batteries, and the ability of Balqon Corporation and Autocar, LLC to develop on-road Class 7 and Class 8 zero emissions electric vehicles and the commercial viability of such vehicles are forward-looking statements that involve a number of risks and uncertainties. The actual future results of Balqon Corporation could differ from those statements. Factors that could cause or contribute to such differences include, but are not limited to, unforeseen technical issues; Balqon Corporation’s ability to attract sufficient capital; the ability of Balqon Corporation to attract and retain talented individuals; adverse economic and market conditions; the projected future demand for Balqon Corporation’s products; changes in technology and governmental regulations and policies; and other events, factors and risks previously and from time to time disclosed in Balqon Corporation’s filings with the Securities and Exchange Commission, including, specifically, those factors set forth in the “Risk Factors” section of Balqon Corporation’s Amendment No. 1 to its Annual Report on Form 10-K for the year ended December 31, 2008 filed with the Securities and Exchange Commission on May 22, 2009.