Electric Vehicle Division News

Electric Fuel To Unveil Electric Transit Bus In Public Las Vegas Demo Drive Events

- First Zero-Emission Zinc-Air Bus to be Presented to Government Leaders, Industry and Public -

- Electric Fuel CEO: "People can Come and Kick the Tires - This Bus is for Real!" -

August 28, 2001 - Electric Fuel Corporation (Nasdaq: EFCX) announced today that it will drive its zinc-air electric transit bus on the streets of Las Vegas, Nevada, during three days of planned public events from October 16 to 18.

For the first time, the public will also be invited to take part in on-road demonstration drives of Electric Fuel's electric bus. Electric Fuel CEO Yehuda Harats said, "After several years of intensive development and testing, and working toward the goal of bringing clean, efficient and practical alternative-fuel transportation to America's cities, this is a major milestone for us. We want people to come, kick the tires, and take a ride. They will see that this revolutionary vehicle, which has all the capabilities required by the transit industry for 40-ft transit buses, is for real!"

The demonstration drives, which will be hosted by the Regional Transportation Commission of Southern Nevada (RTC), are being conducted as part of Electric Fuel's Phase 2 agreement with the Federal Transit Administration (FTA) to demonstrate and evaluate the all-electric zinc-air transit bus.
The Company said that the first day of the demonstration drives would feature a presentation to Nevada congressional, state and local leaders, and participation by other project sponsors and partners. The bus will be driven around Las Vegas in regular traffic, providing photo opportunities at Las Vegas points of interest.

Subsequent days are to include special sessions and demonstration drives for the transit industry and the project peer review committee, as well as for representatives of the electric power industry, regulatory agencies, environmental groups, and the general public. RTC, a project partner, will organize the events together with Electric Fuel.

Electric Fuel's Harats explained, "The purpose of the three days is not only to demonstrate this amazingly clean and quiet transit bus, but also to be able to explain the technology and the benefits of zero-emission transportation for the community."

Details of the Las Vegas events, including information on demonstration drives for the general public, will be publicized as they become available on the Company's EV website at www.electric-fuel.com/EV.

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. The Company recently announced that it had completed performance testing of the all-electric, zero-emission bus at various venues in New York State.

About Electric Fuel

Electric Fuel Corporation, 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 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.