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Electrosource Receives $1.4 Million Order From Chrysler

3 February 1998

Electrosource Receives $1.4 Million Order From Chrysler

    SAN MARCOS, Texas, Feb. 3 -- Electrosource, Inc.
, announced today the receipt of a $1.4 million Purchase Order
from Chrysler Corporation for HORIZON(R) C2M (co-extruded composite
matrix) batteries.  Electrosource batteries are the power source for Chrysler
Electric Powered Interurban Commuter (EPIC) minivans delivered to fleet
customers in California in 1997.
    "We are pleased to receive this order for HORIZON C2M production batteries
for Chrysler's development and field service requirements," said Electrosource
Chairman, President and CEO, Michael G. Semmens.  In December 1997, Chrysler
reported that it will offer another vendor's batteries in its 1999 EPIC
minivan.  Semmens noted, however, that Electrosource will continue its
relationship with Chrysler through development efforts such as improving
overall EPIC system performance.
    Semmens stated that Electrosource will maintain its business strategy to
penetrate diverse markets where the HORIZON C2M technology can provide a
cost / performance advantage.  In addition to manufacturing the production
battery used in the 1997 Chrysler EPIC and in Lockheed Martin's HybriDrive(TM)
hybrid-electric drive system, the Company has developed several prototype C2M
battery models for applications such as small commuter hybrid-electric
vehicles, airplane and helicopter starting, electric lawn mowers, and electric
cars, buses and heavy-duty military vehicles.  "Our marketing and engineering
teams are testing and refining these products to meet total system
requirements for our clients," said Semmens.
    Electrosource manufactures HORIZON(R) C2M maintenance-free batteries that
deliver a high-power / high-energy combination and offer deep discharge
characteristics at affordable prices.  The Company has been awarded ISO 9001
Registration in recognition of ongoing quality control and product
consistency.  Electrosource has cooperative development contracts, purchase
orders, and strategic alliances with world-class industrial leaders.
    Electrosource, headquartered in San Marcos, Texas, designs, manufactures
and markets proprietary advanced energy storage technologies and systems.
Additional information about the company is located on the internet at
http://www.electrosource.com.
    This release contains forward-looking statements regarding applications
and sales that involve risks and uncertainties.  Actual results could differ
materially from those discussed in this release.  Risks include development
risks, manufacturing risks, uncertainty of market acceptance, change in
government mandates requiring electric vehicles, delay in shipment or
cancellation of orders, customer reorganization, as well as other risks that
are detailed from time to time in the Company's Securities and Exchange
Commission filings.

SOURCE  Electrosource, Inc.