Electric Vehicle Division News

Electric Fuel Announces Successful Completion of German Electric Van Project

On-road Drive of DaimlerChrysler’s Passenger Taxi Sprinter Van with
Electric Fuel Zinc-Air Fuel Cells Completed in Bremen

December 17, 2002 — Electric Fuel Corporation (NasdaqNM: EFCX), announced today that the German zinc-air electric van consortium has completed its multi-year government-funded program by successfully demonstrating the zinc-air van on-road. The revolutionary zero-emission all-electric hybrid van is powered by Electric Fuel zinc-air fuel cells as the sole energy source, together with a NiMH battery and an ultra capacitor.

An advanced energy and power traction system was integrated by DaimlerChrysler and coordinated by BIBA Institute in Bremen. It includes Electric Fuel zinc-air fuel cells, VARTA Battery AG nickel-metal-hydride batteries and EPCOS AG ultracapacitors. Tests of the vehicle in a passenger taxi configuration have now been successfully completed including: laboratory tests of the various components; integration tests of the vehicle with all its sub-systems and controls; and today’s on-road test-drive on the premises BIBA at Bremen University. The vehicle received standard registration plates, based on authorization and inspection by the TÜV, a German standards and testing institute.

During the € 12 million ($11.8 million) program, the German EFRB consortium developed the hybrid vehicle design based on DaimlerChrysler cargo vans. The van is powered by Electric Fuel’s refuelable zinc-air fuel cells as the main energy storage, together with booster batteries provided by Varta, and ultracapacitors developed by EPCOS AG (formerly Siemens Matsushita Components).

Consortium organizers expressed hopes that the program will lead to the future commercialization of high performance, clean electric transportation based on these technologies.

The EFRB consortium is comprised of Electric Fuel, DaimlerChrysler AG , EPCOS AG, Dornier GmbH, K-UTEC GmbH and Varta Batterie AG, in cooperation with other German industrial firms and academic institutions. The German Post, which sponsored an extensive field test of Electric Fuel’s zinc-air battery system for electric vehicles from 1995 through 1998, also joined the consortium as an Advisory Partner. The consortium organizers BIBA, the Bremen Institute of Industrial Technology and Applied Work Sciences at the University of Bremen, initiated and coordinated the program under contract from the German Federal Ministry of Economy and Labour.

Electric Fuel President and CEO Robert Ehrlich commented, “This is a significant accomplishment in a key program. Together with our US bus program advances, our zinc-air solutions programs are making considerable progress. Both programs share the all-electric hybrid concept, which has already proven its capabilities in US testing. The EFRB program compliments the US program by focusing on cargo/passenger vans.”

About Electric Fuel

Electric Fuel Corporation (www.electric-fuel.com) is a world leader in primary and refuelable zinc-air fuel cell technology, pioneering advancements in battery technology for defense and security products, military applications and electric vehicles. Electric Fuel develops, manufactures and markets advanced high-tech multimedia and interactive digital solutions for the training of military, law enforcement and security personnel, and state-of-the-art lightweight materials and engineering processes to armor vehicles.

Electric Fuel has corporate and sales offices in New York and London with research, development and production subsidiaries in Alabama, Colorado and Israel.

All brand names mentioned in this release are trademarks or registered trademarks of their respective owners.

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; changing economic conditions; delay, cancellation or non-renewal of purchase orders; significant future capital requirements; the Company’s ability to quickly and smoothly execute the change in leadership as a result of its former CEO’s resignation; and other risk factors detailed in Electric Fuel’s most recent Annual Report on Form 10-K for the fiscal year ended December 31, 2001, Electric Fuel’s most recent Quarterly Report on Form 10-Q, 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.