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Electric Fuel Receives Order from Deutsche Post for Batteries to Power New Series of Vans

29 September 1997

Electric Fuel Receives Order from Deutsche Post for Batteries to Power New Series of Vans

    NEW YORK, Sept. 29 -- Electric Fuel Corporation
announced today that it has received a new order from Deutsche
Post AG for batteries and services to power the first of the new series of
Mercedes-Benz 2.5-ton Vito vans which will be operated by Deutsche Telekom and
Deutsche Post.  This initial order, to be delivered over the next three
months, will generate revenue for the Company of approximately $1 million.
    Electric Fuel also announced today that Deutsche Post and the Company
agreed to extend the timetable for negotiations to commercialize the Company's
zinc-air technology in order to examine inclusion of production partners.
During a recent quarterly partners meeting in Israel, both parties discussed
an expanded business structure for the large-scale commercialization of the
Electric Fuel zinc-air energy system in Germany and certain other countries in
Europe.
    Electric Fuel and Deutsche Post broadened the timeframe for concluding
discussions to the end of 1997 from the September 30 target date.  Both
parties believe that the proposed business structure should include German
industrial companies, in addition to themselves.
    Deutsche Post also decided to integrate Mercedes-Benz Vito mini-vans for
field test purposes.  Opel has decided to terminate its field test partnership
as well as not to participate in the proposed further activities.
    The Deutsche Post is concluding a field test of electric vehicles powered
by Electric Fuel's zinc-air battery system for its fleet operations.  The
vehicles are serviced by the Company's zinc regeneration facility in Bremen,
Germany.  Other participants in the project include Deutsche Telekom,
Mercedes-Benz, Krupp-Uhde, Webasto, and the electric utility at Bremen.
    (This press release contains forward-looking statements.  There are
certain important factors that could cause results to differ materially from
those anticipated by the statements made above.  Among, but not limited to
these factors, include the completion of the Deutsche Post field test, the
uncertainty of the electric vehicle market and significant future capital
requirements.)
    Electric Fuel Corporation, with corporate offices in New York City and
manufacturing and R&D facilities in Jerusalem, Israel, has positioned its
zinc-air energy system to meet the emerging demand for zero-emission electric-
powered transportation.  The Company is also currently developing other zinc-
air applications for portable electronic devices.

SOURCE  Electric Fuel Corporation