Electric Vehicle Division News

Electric Fuel Completes Electric Transit Bus Performance Testing

- Following Final Record-Breaking Test Drive, Electric Fuel Zinc-Air Transit Bus Ready for On-Road Demo Drives Phase -

August 2, 2001 - Electric Fuel Corporation (Nasdaq: EFCX) announced today that it has completed the performance testing of its zinc-air electric bus, as part of its Phase 2 agreement with the Federal Transit Administration (FTA) to demonstrate and evaluate the all-electric transit bus.

In the final performance test, the bus was driven a record-breaking total of 110 miles, more than 100 of them under the rigorous stop-and-go driving conditions of the Society of Automotive Engineers' Central Business District (CBD) cycle, and with a load simulating nearly the maximum passenger payload of the bus. The test performance exceeded even the design goals of the bus, which included a 95-mile driving range on the CBD cycle with a 50% passenger load. The most recent testing took place at Rome, New York, on a taxiway of the former Griffiss Air Force Base, and also included evaluation of constant-speed driving and acceleration.

Electric Fuel said that the bus is now ready for the on-road demonstration drives planned for Las Vegas, Nevada, later this year. Yoel Gilon, Electric Fuel's EV Program Manager, said, “We hope to be able to have our first on-road drives of the Electric Fuel bus in Las Vegas this fall. The actual scheduling will depend upon the various project partners and the FTA.''

About the Electric Fuel Zinc-Air Transit Bus Program

The Electric Fuel Zinc-Air Electric Transit Bus Program was initiated in 1998, with the aim of developing and demonstrating a full-sized, all-electric, zero-emissions transit bus utilizing zinc air battery technology for transit.

The bus used in the program is a standard 40-foot transit bus, with a capacity of 40 seated and 37 standing passengers and a gross vehicle weight of 39,500 lbs. Transit buses require a large energy storage battery to power the vehicle while attending to passenger needs such as air-conditioning, handicapped access, etc. The Phase 2 work focuses on additional testing, and integrating ultracapacitor technology to maximize the energy and power capabilities of the bus.

Electric Fuel recently announced that it had established a dedicated Electric Vehicle company. The new subsidiary, Electric Fuel Transportation Corp., will focus on commercializing Electric Fuel's zero-emission Zinc-Air all-electric hybrid transportation system.

About Electric Fuel

Electric Fuel Corporation (http://www.electric-fuel.com), with corporate and sales offices in New York and London, England, and manufacturing and R&D facilities in Israel and Alabama, is a world leader in primary and refuelable Zinc-Air fuel cell technology, pioneering advancements in consumer electronics, electric vehicles, and defense and safety products. Electric Fuel's INSTANT POWER(TM) batteries and chargers are based on the Company's patented, cutting-edge Zinc-Air fuel cell technology, and are on sale at retail outlets throughout the United States, Europe and Israel.

Except for the historical information herein, the matters discussed in this news release include forward-looking statements, as defined in the Private Securities Litigation Reform Act of 1995. Readers are cautioned not to place undue reliance on these forward-looking statements, as they are subject to various risks and uncertainties that may cause actual results to vary significantly. These risks and uncertainties include, but are not limited to, risks relating to: product and technology development; the uncertainty of the market for Electric Fuel's products; market acceptance of new products and continuing product demand; the ability to manage growth and ramp-up production effectively as needed; the impact of competitive products and pricing on Electric Fuel's products and markets; changing economic conditions; delay, cancellation or non-renewal of purchase orders; significant future capital requirements; and other risk factors detailed in Electric Fuel's most recent annual report on Form 10-K for the fiscal year ended December 31, 2000, and other filings with the Securities and Exchange Commission. Electric Fuel assumes no obligation to update the information in this release. Reference to the Company's website above does not constitute incorporation of any of the information thereon into this press release.