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PolyStor Awarded Hybrid Electric Vehicle Program

20 July 1998

PolyStor Awarded Hybrid Electric Vehicle Program From U.S. Battery Consortium Worth $9.5 Million

   Northern California Company One Step Closer to Providing U.S. Automobile
             Manufacturers With High-Power Lithium-Ion Batteries

    DUBLIN, Calif., July 20 -- PolyStor Corporation, today
announced it has received Phase 2 of a Partnership for a New Generation of
Vehicles (PNGV) contract worth $9.5 million to develop battery modules for
hybrid electric vehicles (HEVs).  HEVs combine small, high efficiency internal
combustion engines and batteries to achieve ultra low emissions and 80 miles
per gallon.  The contract was awarded by the U.S. Advanced Battery Consortium,
which includes the U.S. Department of Energy, Electric Power Research
Institute (EPRI), General Motors Corporation, Ford Motor Company and Chrysler
Corporation.  PolyStor successfully completed Phase 1 of the project,
demonstrating the applicability of its proprietary high-power Lithium-ion
battery technology to meet the USABC/PNGV Technical Goals for hybrid electric
vehicles.
    In this 22-month program, PolyStor will develop and test 10 Ah Lithium-ion
cells and deliver 48 Volt (12 cell) battery modules with thermal management
and electronics.  The 10 Ah Lithium-ion cells will output more than 1000 W/kg
of power and weigh just 370 grams.  The cells will be available in early 1999,
and modules available in late 1999.  It is anticipated that cost will be
approximately $0.50 to $1.00 per Wh in the short term, decreasing with time
and increased production volumes.  Following the completion of Phase 2 at the
end of 1999, PolyStor plans to build 400V Lithium-ion battery systems for HEV
testing.
    "PolyStor sees the current demand for small Lithium-ion cells in mobile
phones, notebook and handheld computer markets expanding to larger
applications in the next five years," affirmed Dr. Menahem Anderman,
PolyStor's VP of Technology.  "Applications that are attractive candidates for
large Lithium-ion cell technology include electric and hybrid cars, electric
bicycles, scooters, golf carts, electronic household and garden equipment, as
well as aerospace and military applications."
   PolyStor has teamed with Lawrence Berkeley National Laboratory (LBNL) of
Berkeley, CA to fulfill this contract effort.  LBNL is one of the world's
premier electrochemistry research institutions and has been very active in
electric vehicle battery and material research.
    Based in northern California, PolyStor is the only commercial U.S.
manufacturer of Lithium-ion batteries. PolyStor works with both original
equipment manufacturers and value added distributors to provide Lithium-ion
batteries and chargers.  Visit PolyStor's website, http://www.polystor.com, to
learn more about the company and the Lithium-ion products.