Electric Vehicle Division News

Electric Fuel's All Electric Bus Completes Full City Test Drive

- World Record for Zero-Emission City Bus Drive -

July 9, 2001 — Electric Fuel Corporation (Nasdaq: EFCX) announced today that it had completed another major milestone in Phase II of its Zinc-Air All Electric Transit Bus program with the Federal Transit Administration. In a recently completed test drive, the bus traveled 97 miles under typical city bus driving conditions, including stop and go, acceleration and constant speed, which the Company believes to be a world record. As a measure of comparison, the average normal full day cycle for New York City buses is less than 90 miles. The Company believes that these test results indicate that all-electric buses utilizing Electric Fuel's Zinc-Air technology have sufficient range to offer a practical solution for helping to eliminate bus pollution in central cities.

The majority of the drives were performed on a half-mile test track at Schenectady (New York) County Airport in the police training center. The test also marked the finalization of adjustments of the test control logic system and verified all data acquisition operations. The Electric Fuel All Electric Transit Bus is designed to operate as a full-size, zero emission 40-foot bus having a 20-ton gross vehicle weight (including passengers) and operating all standard bus features, including air conditioning.

Mr. Yoel Gilon, Manager, Electric Vehicle Program of Electric Fuel, said, “This is another major step in the performance testing of our Zinc Air fuel cell technology, and we believe that we are well on the way to demonstrating the readiness of our technology for city bus operations.''

Mr. Yehuda Harats, Electric Fuel's President and Chief Executive Officer, said, “This very encouraging test gives us continuing confidence that we will soon be able to offer industry and government a cost-effective, zero-emission solution for polluted central city environments.''

About Electric Fuel

Electric Fuel Corporation (http://www.electric-fuel.com) 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. The company has corporate and sales offices in New York and London, England, and manufacturing and R&D facilities in Israel and Alabama. Electric Fuel's common stock is traded on the Nasdaq Stock Market under the symbol EFCX.

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; development and growth of anticipated markets 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. Instant Power is a trademark of Electric Fuel Corporation. All other brand names are trademarks or registered trademarks of their respective owners.