---

Ergenics Awarded Defense Contract

3 February 1998

Ergenics Awarded Defense Contract

    RINGWOOD, N.J., Feb. 3 -- Ergenics announced today that it
has been awarded a Defense Advanced Research Projects Agency (DARPA) contract
to produce a high power model of its Hy-Stor(R) battery system for hybrid
electric vehicles.
    The Ergenics technology is a life-of-the-vehicle power system good for
hundreds of thousands of charge/discharge cycles.  It accepts high charge
rates and discharges at high rates needed for acceleration in a hybrid vehicle
which utilizes a small efficient internal combustion engine in combination
with an energy storage section for peaking power.  The Ergenics Hy-Stor system
differs from nickel-metal hydride batteries in that it contains hydrogen in a
storage unit external to the power section.  Ergenics is targeting specific
power of 1000 watts per kilogram for the DARPA model.
    Ergenics is currently developing megawatt-hour size systems for electric
utility peak shaving with a large offshore company.  It is also developing
superior D cells for electric bicycle battery packs.
    The Ergenics Hy-Stor battery system combines the high energy storage
density of metal hydrides with the U.S. Space Program's proven simple
electrochemistry of nickel/hydrogen batteries.  The resulting product
outperforms all other battery technologies in significant measures including
extraordinary cycle life, long life, zero self discharge, safety, and
tolerance of overcharge and overdischarge operation.  Its bipolar design
delivers high power capability without problems of thermal management.
    The contract is awarded by DARPA under its transportation technology
consortium program.  The program is part of the Mid Atlantic Regional
Consortium for Advanced Vehicles administered by Concurrent Technologies
Corporation.  Ergenics acknowledges the assistance of CTC in the improvement
of cell manufacturing processes and modeling of cell thermal and vibrational
properties.
    Ergenics is a privately owned energy storage device company which is known
throughout the world for its expertise in utilization of metal hydrides in
commercial applications.  Ergenics will manufacture battery systems, become an
OEM supplier, and license its technology to joint ventures it forms with
strategic partners.
    Visit our web site at http://www.ergenics.com

SOURCE  Ergenics, Inc.