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BAT Supercar Gets 65 m.p.g. in Urban Cycle

2 September 1998

BAT Supercar Gets 65 m.p.g. in Urban Cycle, Beating the Toyota Prius by 4 m.p.g.
    BURBANK, Calif., Sept. 2 -- BAT International's
(OTC Bulletin Board: BAAT) "BAT Supercar" has achieved approximately 65 miles
per gallon on an urban drive cycle, achieving 4 miles per gallon more fuel
efficiency than the Toyota Prius, which went 61 miles per gallon.  The results
are very significant when considering that the Toyota Prius utilizes a hybrid
electric drive system that adds power back into the car from braking.
    Testing was completed by BAT on the "Pomona Loop", a 20 mile segment of
urban streets that includes many stop signs and traffic lights and 600 feet of
elevation gain.  The "Pomona Loop" has been selected in the past by Southern
California Edison (SCE) to represent a typical urban drive cycle.  It has been
used by SCE and many groups to test the range and efficiency of vehicles in
urban driving.  The test was certified by Tom Bandwell, a professor from
CALTECH, Pomona.
    The Toyota Prius has an on-board computerized management system that
automatically switches energy requirements from electric to internal
combustion engine or allows use of both systems simultaneously to achieve the
most efficient use of power.  During braking conditions, ordinary cars burn
energy while braking.  The Prius uses the on-board electric motor as a
generator to stop the car and put energy back in the batteries for use during
driving.  BATs Supercar must rely entirely on fuel efficiency benefits from
Dolphin Pulse Charge technology to overcome significant Prius advantages.
    In prior testing, the BAT Supercar went 81 miles per gallon in highway
testing at 55 miles per hour versus 62 miles per gallon for the Toyota Prius.
When the combined city/highway drive numbers are averaged, the net result is
73 miles per gallon for the BAT Supercar versus 62 miles per gallon for the
Toyota Prius.  BATs Supercar is very close to the "Supercar" goal of an
average fuel economy of 80 miles per gallon in city/highway driving in a
production sedan, with a technology that could be brought to market in the
near future, instead of the U.S. government goal of 2006.  The test results
may also surprise many engineers, who expected much lower fuel economy in the
urban drive cycle for the BAT Supercar and given the design focus of the
Toyota Prius to optimize efficiency in an urban cycle.
    One of the most important differences between the two vehicles is cost.
The Toyota Prius utilizes a drive system with both a gasoline and electric
motor.  This leads to higher production costs, estimated by industry insiders
at about $32,000.  The BAT Supercar involves only minor changes to existing
components in an internal combustion engine.  This is expected to require
little retooling cost in volume production, and therefore have little impact
on engine or vehicle cost.
    Further urban and highway driving is planned with the Toyota Prius and BAT
Supercar, and possibly with some other vehicle comparisons.  Once highway and
urban field testing is completed, BAT will complete independent dynamometer
tests that include fuel economy and emissions tests.
    BAT International is organized as a holding company with major ownership
position in a set of subsidiary companies now commercializing advanced
automotive and energy technology products developed by BAT over the last six
years, including Dolphin Pulse Charge technology.  Other products include

advanced lubricant additives, electric vehicles, advanced batteries and power
electronics, electric bicycles & scooters, and electric power generation, (for
information, see BAT web site http://www.baat.com. or call Cheryl Mitchell
(360) 384-2730).
    This press release contains forward-looking statements that should not be
used to make an investment decision.  Please refer to our web site at
http://www.baat.com and other sources for more detailed Company information or call
(360) 384-2730.