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California Will Allow Zero Emission Vehicles with 1 Person in Car Pool Lanes

30 June 1999

Legislation in California Will Allow Zero Emission Vehicles with 1 Person in Car Pool Lanes
                        Letters of Support Needed Now!

    CHULA VISTA, Calif., June 30 -- BAT International
(OTC Bulletin Board: BAAT) is strongly supporting efforts of the California
Legislature to allow zero emission (ZEV) and inherently low emission (ILEV)
vehicles access to carpool or HOV lanes with just one occupant.  A bill has
been introduced by Assemblyman Cunneen (AB 71) that will allow ILEV and ZEV
vehicles access to HOV lanes for a limited time period as a market incentive
to encourage California drivers to purchase clean fueled vehicles.  The bill
would insure that HOV lanes, which are now largely underutilized, would be
more fully used to reduce congestion, while offering a strong incentive to
consumers to buy new clean car technology.
    The legislation is very important because there are requirements that
10% of new cars in California in 2003 be zero emission or equivalent ZEV
(approximately 170,000 cars).  The success of this mandate is strongly
dependent on auto companies gearing up to produce the vehicles at a reasonable
cost so the market introduction is successful.  The availability of a strong
market incentive such as carpool lane access can be extremely important to
people who have lots of money, but no time and will pay a premium for a
vehicle that gives them this faster commute option.  This insures early market
acceptance of vehicles when there may be a price differential with gasoline
vehicles.
    BAT has been involved in the past to get similar legislation through the
California Legislature.  Two years ago a bill was sponsored by BAT and
proposed to various Senators and Assemblypersons that provided HOV lane access
for ZEVs.  After a concerted grass roots effort, the bill passed both the
Assembly and Senate, but was vetoed by Governor Wilson in connection with a
major lobbying effort by the oil companies.  Bill Wason, Vice-President of
BAT, originally drafted a bill in 1995 & 1996 that was introduced to the
Legislature for the first time and is very similar to the ILEV bill that has
been introduced by As. Cunneen this year.
    Several of BAT's subsidiaries are involved in efforts to manufacture fuel
cells and high power batteries that will provide the power pack necessary to
have a zero emission vehicle achieve the same range, acceleration and
performance of current gasoline and diesel vehicles.  The pace of production
ramp-up will definitely be aided by the availability of a strong incentive in
the marketplace that will encourage major auto companies to manufacture
electric and fuel cell powered vehicles.
    The legislation is partly the result of Federal EPA regulations that
provide access to HOV lanes for ILEV vehicles that belong to fleets of 10 or
more vehicles affected by Clean Fuel Fleet Rules.  The 1994 regulation
requires that all states provide access to HOV lanes for any fleet vehicles
that have certified their vehicles to meet ILEV emission standards.
Inherently Low Emission Vehicle (ILEV) standards refer to vehicles with no
evaporative emissions, even with the fuel canister disengaged (natural gas,
electric or fuel cell powered vehicles).  The EPA regulation could present
enforcement problems for the California Highway Patrol, since it would be
difficult to distinguish between fleet or non-fleet clean fuel vehicles.
    BAT has set up a new legislative section in their web site (http://www.baat.com)
to help interested parties write letters in support of legislation that will
insure success of clean fuel vehicles.  In conjunction with this effort,
BAT is encouraging all shareholders, e-mail information partners and others to
write letters in support of this bill.  Sample letters have been posted on
their web site at http://www.baat.com.  Letters can be sent by fax to (916) 319-2124
or by e-mail to jimcunneen@asm.ca.gov and in addition a fax copy to
(916) 445-2209.
    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.  Technologies
developed over the last six years include electric vehicles, composite
chassis, super-efficient or high power engines, electric bicycles and
scooters, advanced batteries, lubricant additives, and electric power
generation (for information see BAT web site at http://www.baat.com).

    This press release contains forward-looking statements that should not be
used to make an investment decision.  Please refer to BAT web site and other
sources for more detailed Company information (Investor Relations,
(619) 409-8977)