Electric Vehicle Division News

A World Record 127 Miles For Zinc Air Bus With Added Ultra Capacitors

New All Electric Hybrid System to Offer Lower Operating Cost to Bus Operators

July 18, 2002 — Electric Fuel Corporation (NasdaqNM: EFCX), the world's leading zinc-air fuel cell company announced today that its all-electric bus powered by the Company's zinc air fuel cell technology has demonstrated a record 127-mile range under rigorous urban conditions. In a test conducted this week a pack of ultra capacitors was added to the bus, greatly increasing the system's efficiency. Conducted under the same conditions of an earlier test, improvements in the main zinc-air fuel cell combined with the addition of ultra capacitors increased the bus's range from 101 to 127 miles, a 25% increase.

This drive was the last test drive planned under phase II of the Zinc-Air All Electric Transit Bus program with the Federal Transit Administration. The submission of the final test results, expected within two months, will conclude the obligations to the FTA for this program.

The test drive was conducted on the former Griffith Air Force base near Rome, New York, with the bus traveling under typical city bus driving conditions, including stop and go, acceleration and constant speed. The Company believes the 127 miles driven 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 clearly 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 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, vice president of Electric Fuel's Electric Vehicle Program said, "The ultra capacitors clearly increase driving range, acceleration and overall efficiency and with our improved zinc air fuel cells the performance achieved surpassed even our own expectations."

Mr. Yehuda Harats, Electric Fuel's President and Chief Executive Officer said, "These superb results also help in reducing the operating costs of bus operators. Our system is now in a better position to compete with hybrid diesel and hydrogen fuel cell technologies. It's a big boost for our increased effort to commercialize the system and make our cities a better place to live in."

About Electric Fuel

With corporate and sales offices in New York and London, England, and manufacturing and R&D facilities in Israel and Alabama, Electric Fuel Corporation 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, Canada, Europe and Israel. For more information on Electric Fuel, please visit our web site at http://www.electric-fuel.com, or find out more about our consumer products at http://www.instant-power.com.

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; 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, 2001, 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.