Electro Energy announces CalCars project
Oct 20, 2005 (From the CalCars-News archive)

See also our comments on the technical side at the
PRIUS+ Plug-In Hybrid Conversion Group
http://autos.groups.yahoo.com/group/priusplus/message/513
Subsequent comments on the technical side will be at the Conversion
Discussion Group

http://biz.yahoo.com/prnews/051020/nyth044.html?.v=29

Press Release Source: Electro Energy Inc.

Electro Energy Advanced Technology to Power Hybrid Electric Vehicles for
CalCars' PRIUS+ Program
Thursday October 20, 8:30 am ET

DANBURY, Conn., Oct. 20 /PRNewswire-FirstCall/ -- Electro Energy Inc.
(Nasdaq: EEEI - News), a leading provider of advanced battery technologies
and associated systems, today announced it is developing a custom-designed
prototype battery pack for CalCars' Toyota PRIUS+ Test Vehicle, which is
the centerpiece of the California Cars Initiative (CalCars) program
promoting the commercial use and mass production of plug-in hybrid electric
vehicles (PHEV).

CalCars' PRIUS+ project retrofits Toyota's Prius, the nation's most popular
hybrid car, with a high-energy content battery, which becomes the vehicle's
primary power source for local travel, eliminating the use of gasoline for
short trips. For longer trips, the car can revert to conventional hybrid
operation, which uses a combination of gasoline and battery power. The
battery can be recharged at off-peak hours, further supporting energy
conservation.

Explaining why he initiated collaboration with EEEI, Ron Gremban, the lead
technologist on CalCars' PRIUS+ project, stated, "Electro Energy's
prototype pack has lower internal resistance than the Prius' original
hybrid battery, meaning higher power availability and lower energy losses.
It is expected to improve average typical mixed-driving gasoline
consumption and range performance to 90 mpg plus electricity for the first
40-50 miles after each charge, without compromising the Prius' original
performance of 45 mpg."

CalCars' goal is to spur mass adoption of efficient, non-polluting
automotive technologies. The project aims to demonstrate solutions to
reduce dependence on imported fuel and to reduce production of automotive
greenhouse gases. CalCars believes PHEVs bridge the gap between hybrids and
zero- emission vehicles using proven technologies.

Felix Kramer, founder of CalCars, added, "Electro Energy and CalCars are
demonstrating that Ni-MH type batteries, already in use in hundreds of
thousands of hybrid cars, can be an immediately effective solution for
PHEVs. We also hope to demonstrate EEEI's batteries on other vehicle
platforms."

Martin Klein, Chairman and CEO of EEEI and an internationally recognized
expert in the battery, fuel cell, and energy fields, stated, "Plug-in
hybrid electric vehicles have been proposed by a number of scientists and
engineers over time. However, a number of dynamics have shifted to raise
their consideration. These factors include:

1. Practical production of hybrid power trains as exemplified by the
Toyota Prius,
2. The increasing price of oil and the political instability of oil
supply,
3. The mounting evidence of global warming and initiatives to reduce
green house gas emissions, and
4. The development of advanced rechargeable batteries such as EEEI's
bipolar nickel-metal (BP-NiMH) battery."

Mr. Klein further stated, "The deployment of large numbers of plug-in
hybrid electric vehicles have the potential to have a revolutionary impact
on the energy-economic-environmental equation, as Senator Joseph Lieberman
recently made clear. CalCar's prototypes are an important step toward
convincing automakers to mass-produce plug-in hybrid electric vehicles."

Senator Lieberman (D-Conn.), in a Georgetown University speech on October
7, 2005, unveiled a package of legislative proposals to reduce U.S. oil
consumption and achieve a mandated 10 million barrels in oil savings in 20
years. The proposals include an aggressive strategy for promoting the use
of hybrid electric vehicles and plug-in hybrids. (Further information is
available at http://Lieberman.senate.gov.)

Discussing the advantages and future of EEEI's technology, Michael Reed,
President and COO of EEEI, said, "Electro Energy's bipolar design is based
on flat wafer Ni-MH cells stacked together under pressure in sealed
modules. This patented technique has resulted in higher power and energy
densities for the Ni-MH chemistry and results in reduced weight, volume and
costs, with increased performance. EEEI intends to introduce this advanced
technology to the automotive market for advanced hybrid and plug-in hybrid
battery systems."

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 operation supplies aerospace-grade high
quality nickel cadmium batteries and components for satellites, aircraft
and other specialty applications. EEEI is also developing high power
lithium rechargeable batteries utilizing the Company's proprietary design.
In May, EEEI announced plans to acquire significant manufacturing assets
near Gainesville, Fla., by the end of 2005 to accelerate commercialization
of its battery technology.

About CalCars

The California Cars Initiative (http://www.CalCars.org) is a non-profit
technology development and advocacy startup formed by a group of
entrepreneurs, engineers, environmentalists and consumers to jump-start the
market for plug-in hybrids. CalCars has built prototype PHEVs and is
harnessing the collective vision and purchasing power of individuals and
corporate and government fleets. CalCars aims to engage major car makers to
produce plug-in versions of existing sedans and SUVs.

Certain statements in this news release may contain forward-looking
information within the meaning of Rule 175 under the Securities Act of 1933
and Rule 3b-6 under the Securities Exchange Act of 1934, and are subject to
the safe harbor created by those rules. All statements, other than
statements of fact, included in this release, including, without
limitation, statements regarding potential future plans and objectives of
the companies, are forward- looking statements that involve risks and
uncertainties. There can be no assurance that such statements will prove to
be accurate and actual results and future events could differ materially
from those anticipated in such statements. Factors that could cause actual
results to differ materially from those in the forward-looking statements
include, among other things, the following: general economic and business
conditions; competition; unexpected changes in technologies and
technological advances; ability to commercialize and manufacture products;
results of experimental studies; research and development activities;
changes in, or failure to comply with, governmental regulations; and the
ability to obtain adequate financing in the future. This information is
qualified in its entirety by cautionary statements and risk factors
disclosure contained in certain of Electro Energy Inc.'s Securities and
Exchange Commission filings available at http://www.sec.gov.

Pursuant to a December 1, 2004 agreement, Consulting For Strategic Growth
I, Ltd. ("CFSG") provides Electro Energy with consulting, business
advisory, investor relations, public relations and corporate development
services, for which CFSG receives a fixed monthly fee for the duration of
the agreement. Independent of CFSG's receipt of cash compensation from
Electro Energy, CFSG may choose to purchase the common stock of Electro
Energy and thereafter sell those shares at any time it deems appropriate to
do so.

CONTACTS:
Audra J. Mace
Chief Financial Officer
Tel: (203) 797-2699
Fax: (203) 797-2697
E-mail: amace@...
http://www.electroenergyinc.com

Felix Kramer
California Cars Initiative
Tel: (650) 520-5555
Email: info@...
http://www.calcars.org