Electric Vehicle Division News

Electric Fuel's Electric Bus Demo in Las Vegas
Heralded as 'A New Era for Transportation'

- Next Step - a Planned 10-20 Bus Demonstration Fleet-

December 3, 2001 - Electric Fuel Corporation (Nasdaq: EFCX) completed a successful on-road demonstration of its zero-emission electric bus in Las Vegas this week, hosting dozens of congressional, government and industry officials for a test drive on the streets of the city. The pollution-free vehicle received widespread praise for its quiet operation, ability to drive long distances without recharging, and positive impact on the environment.

Electric Fuel said that it is now preparing for the next planned phase in its zero-emission transit bus program, which would put a demonstration fleet of 10 to 20 buses on the road, as an intermediate step towards full commercialization of its technology.

"Electric Fuel's electric bus takes an important step toward reducing pollution as well as promoting energy conservation by eliminating the need to power city buses with diesel fuel," said Senator Harry Reid (D-Nevada). "Building a bus that offers an affordable alternative fuel source and that is nearly ready for delivery is a major accomplishment, and I would like to see this kind of vehicle on the streets of our cities as quickly as possible."

"It is with great enthusiasm that I wish to congratulate Electric Fuel for its remarkable progress in developing the no-emission, zinc air battery technology" said Senator John Ensign (R-Nevada). "Innovative solutions like the no-emission, zinc air battery bus are undoubtedly part of our goal to reduce foreign oil dependency and make places like southern Nevada a better place to live. We made a good decision five years ago to help out Electric Fuel. This will provide benefits for taxpayers and improve the quality of the communities in which they live."

"We have always said, 'If there's a new technology that will make transportation better, more practical and more convenient for our riders, we'll bring it to Southern Nevada,' " said Jacob Snow, General Manager of the Regional Transportation Commission of Southern Nevada. "We are excited to be a part of this project and hope to see this culminate in a new era for transportation."

The event was also attended by representatives of U.S. members of Congress Shelly Berkley and Jim Gibbons, and other dignitaries including Bruce Woodbury and Bryan Nix, chairman and vice chairman of the Regional Transportation Commission of Southern Nevada.

"Our demonstration in Las Vegas is a major step in bringing a practical electric bus to the streets of our cities," said Yehuda Harats, President and CEO of Electric Fuel Corporation. "The positive reception by government and industry officials has added momentum to our program and gives us reason to believe that we will be successful in getting our planned demonstration project of 10 to 20 buses underway in the near future."

With a capacity of 40 seated and 37 standing passengers, Electric Fuel's 40-foot bus utilizes a patented zinc-air fuel cell system that stores and produces sufficient energy to operate for a full day, even with air conditioning and a full passenger load. It is the first full-sized electric bus offering an affordable alternative to diesel fuel in order to eliminate pollution as well as health problems associated with diesel fuel emissions.

Installed in a standard transit bus manufactured by Volvo subsidiary NovaBus Corporation,
the system creates clean electricity by using oxygen from the air to react with Electric Fuel's proprietary refuelable zinc fuel. It produces no emissions, can be refueled quickly, is nearly ready for commercial use, and is expected to be cost-competitive with diesel-powered buses when it goes into regular service.

In contrast, buses powered by conventional batteries are limited in size and driving range by the weight of the batteries, while buses under development using hydrogen fuel cells are considered to be expensive and are not expected to be commercially available for many years.

In August, the Electric Fuel bus was driven a record-breaking 110 miles on a single refueling carrying the weight of a typical heavy passenger payload. More than 100 miles of the test on a taxiway of the former Griffiss Air Force Base in Rome, New York, were driven for eight hours under the rigorous stop-and-go conditions of the Society of Automotive Engineers' Central Business District (CBD) test cycle, meeting all industry standards for an urban transit bus in all-day service.

Funding for the project is provided by the Federal Transit Administration as well as Electric Fuel Corporation, General Electric Corporation-Corporate Research & Development, and the Regional Transportation Commission of Southern Nevada, with additional funding from the Israel-U.S. Bi-national Industrial Research and Development ("BIRD'") Foundation.

About Electric Fuel

Electric Fuel Corporation (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™ batteries and chargers are also based on the Company's patented, cutting-edge Zinc-Air fuel cell technology, and are on sale at retail outlets throughout the United States, Canada, Europe and Israel.

The matters discussed in this news release include forward looking statements that are subject to risks and uncertainties that may cause actual results to vary significantly. These risks include market and competitive factors, and other risks described 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.