Electro Energy Debuts Plug-In Hybrid on Capitol Hill

Source: Electro Energy

May 26, 2006

DANBURY, Conn., May 25 -- Electro Energy, Inc. (Nasdaq: EEEI - News) joined the Plug-In Hybrid Consortium in Washington, D.C. last week to demonstrate the power of plug-in hybrid electric vehicles (PHEVs) to senators, representatives, and members of the House Science Subcommittee on Energy who were meeting to discuss alternative energy as gas prices spiked across the nation. Numerous members of Congress attended the event on May 16-17 and test drove two demonstration PHEVs and learned first-hand of the substantial fuel savings promised by this type of automobile.

One of the vehicles was a Toyota Prius powered by Electro Energy's bi-polar NiMH battery, capable of driving 20 to 25 miles on a single battery charge without using any gasoline, the equivalent of over 100 miles per gallon of fuel economy. Further driving range is possible in the normal hybrid operating mode. Experts at the event, including Professor Andy Frank of UC Davis, Roger Duncan of Austin Energy and Mark Duvall of EPRI, estimated that PHEV electrical energy costs would be less than 3 cents per mile in all- electric mode, compared to 12-14 cents per mile for gasoline at about $3 per gallon.

"We are very pleased with the initial results of the two-day demonstration in Washington," said Michael E. Reed, COO, Electro Energy, Inc. "The comments from those who drove our prototype plug-in hybrid were very encouraging. We plan to continue to refine and improve our proprietary bi-polar battery technology and to demonstrate economically viable plug-in hybrid applications with a 40-mile electric-only range."

Mr. Reed added that the Electro Energy plug-in hybrid was demonstrated at the Advanced Automotive Battery Conference in Baltimore last week and plans are being finalized for a number of events in 2006, including:


* Environmental Action Event New York, NY May 31
* Power Sources Conference Philadelphia, PA June 12-15

Other events will be announced as they are confirmed.

About PHEVs
Plug-in hybrid vehicles are designed to be powered solely by battery power for some period of time, significantly reducing gasoline consumption. The only "infrastructure" required, noted Felix Kramer, founder of the nonprofit California Cars Initiative (CalCars), is a three-pronged extension cord for recharging the battery from a household electric outlet, an example of which he displayed at the event.

CalCars has been collaborating with Electro Energy to apply its bi-polar battery design to PHEVs. The Electro Energy battery provides up to 50% higher power, 30% reduced volume, and 35% lower manufacturing costs than competing technologies, thus helping to make PHEVs more competitive.

The Washington demonstration was conducted following the House Science Subcommittee on Energy hearing on plug-in hybrids and alternative fuels. Plug- in hybrid scientists and other advocates of plug-in hybrid electric vehicles were listened to attentively as they presented the multiple advantages of PHEVs and asked Congress to fund research for advancing the new technology.

Representative Mike Honda (D-CA), Energy Subcommittee Ranking Member, said, "Small steps can make a big difference. A 10% reduction in energy use from cars and light trucks would result in the savings of nearly 750,000 barrels of petroleum per day. Today's electric hybrids are a step in the right direction to reducing our dependence on petroleum, with the Prius traveling about 50 miles per gallon of gasoline."

Electro Energy worked with CalCars, Inc. on the development and testing of the PHEV Prius with its special bi-polar NiMH battery which was demonstrated for the first time in Washington, D.C. A second CalCars plug-in hybrid Prius was also flown to Washington for the event. Electro Energy plans to continue to test demonstrate its plug-in hybrid automobile throughout the East Coast this summer and fall.

Members of the Senate and House who viewed or drove the two plug-in hybrids on May 16-17 included Senator Joseph Lieberman (CT), Senator Robert Bennett (UT), Senator Orrin Hatch (UT), Senator Hillary Clinton (NY), Congressman Brad Sherman (CA), Congresswoman Judy Biggert (IL), Congressman Lamar Smith (TX) and Congressman Robert Inglis (SC). (For additional information, go to http://www.setamericafree.org/plugdcmay06.htm.)

Electro Energy recently leased a 200,000 sq. ft. battery manufacturing facility near Gainesville, Fla. where it plans to produce its bi-polar NiMH batteries, among other batteries, on a commercial basis. The company is in the process of retrofitting the facility and plans to have it operating within the next 6-8 months.

About Electro Energy Inc.

Electro Energy Inc., headquartered in Danbury, Connecticut, was founded in 1992 to develop, manufacture and commercialize high-powered, rechargeable bipolar nickel, metal hydride batteries for use in a wide range of applications. Its Colorado Springs operations supplies aerospace-grade high quality nickel cadmium batteries and components for satellites, aircraft and other specialty operations. EEEI is also developing high power lithium rechargeable batteries utilizing the Company's proprietary design. EEEI recently acquired significant manufacturing assets near Gainesville, Fla., to accelerate commercialization of its battery technology. For further information, please visit www.electroenergyinc.com.