Evercel's Xiamen Nickel-Zinc Battery Plant Nears Completion

7 May 1999

Evercel's Xiamen Nickel-Zinc Battery Plant Nears Completion; Product Expected Within Three Months

    DANBURY, Conn.--May 6, 1999--Evercel, Inc. today announced that its affiliate's new manufacturing facility in Xiamen, People's Republic of China, is nearing completion and is expected to begin producing deep cycle nickel-zinc rechargeable batteries within three months. The Company's first targeted market is the worldwide electric scooter and bicycle industry.
    Evercel's President and CEO, Robert L. Kanode and Chairman, Jerry D. Leitman have recently returned from a visit of the manufacturing affiliate, Xiamen Three Circles - ERC Battery Co., Ltd., located in Xiamen, China.
    "I was pleased with the state of readiness of the Xiamen facility," commented Mr. Kanode. "The Xiamen manufacturing facility gives Evercel advanced high volume, low cost manufacturing capability which we believe will place Evercel in a very competitive market position."
    The Xiamen facility is nearing a state of full readiness. All basic functions, building, utilities, manufacturing areas and office support areas are nearing completion. All critical manufacturing equipment is on order and 70% has been installed and is undergoing acceptance testing. The People's Republic of China is providing full technical, economic and government support of the Xiamen manufacturing operations.
    The Xiamen manufacturing facility is intended to work in harmony with the Evercel Danbury, Connecticut facility, which is responsible for product design and process development. Distribution hubs will be set up both in Danbury and Xiamen, China to support worldwide sales and distribution.
    Evercel, Inc. located in Danbury, Connecticut, is a leader in the field of high performance battery technology. The Company, formerly a unit of Energy Research Corporation (AMEX:ERC) is engaged in the development and commercialization of an innovative, patented, Nickel-Zinc rechargeable battery, as well as the research and design of other advanced battery technologies. The Company's Nickel-Zinc battery has been used on a limited test basis in a range of rechargeable battery applications, including bicycles, scooters, electric vehicles, trolling motors for boats, lawn mowers, electric wheelchairs and golf carts.
    This press release contains forward-looking statements, including statements about the Company's plans and expectations regarding the commercialization of its battery technology. All forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected. Factors that could cause such a difference include, without limitation, the risk that the completion of the Xiamen manufacturing facility will be delayed, the risk that Evercel will not initiate manufacturing or commercial sales as currently anticipated, general risks associated with doing business in China, product development, manufacturing and introduction, rapid technological change, and competition, unanticipated costs and expenses or other events affecting Evercel's business, as well as other risks set forth in Evercel's filings with the Securities and Exchange Commission. The forward-looking statements contained herein speak only as of the date of this press release. Evercel expressly disclaims any obligation of undertaking to release publicly any updates or revisions to any such statement to reflect any change in Evercel's expectations or any change in events, conditions or circumstances on which any such statement is based.