Electric Vehicle Division News

TIAX, Formerly A. D. Little, Report Projects Significant Life Cycle Cost Benefits for Electric Fuel's Zinc-Air Bus

November 18, 2002 — Electric Fuel Corporation (NasdaqNM: EFCX), the world's leading zinc-air fuel cell company, announced today the results of a TIAX (formerly Arthur D. Little) report that projects significant life cycle cost benefits for zinc-air when compared with hydrogen fuel cell technology over a five to ten year period.

The report, an update of a previous study performed by Arthur D. Little, was set to reevaluate the life cycle cost of operating zinc-air fuel cell transit bus in a California public transit fleet. The report also compared the life cycle cost of zinc-air transit buses with the main competing technologies: diesel, diesel-hybrid and hydrogen fuel cell transit buses.

Based on the report's results, zinc-air fuel cell bus technology in transit applications is expected "to present significant life cycle cost benefits compared to hydrogen fuel cell technology in the short-term." The life cycle costs of the other main competing technology, diesel-hybrid buses, are anticipated to be in the same range as zinc-air fuel cell costs.

About the Zinc-Air Bus

The bus used in the program is a standard 40-foot (12 meter) transit bus manufactured by NovaBus Corporation. It has a capacity of 40 seated and 37 standing passengers and a gross vehicle weight of 39,500 lbs. (17,955 kg.). The bus utilizes a new all electric, battery/battery hybrid propulsion system jointly developed by Electric Fuel and General Electric Global Research with funding from the Federal Transit Administration of the Department of Transportation. Phase I of the program included funding also from the Israeli-U.S BIRD Foundation. The all-electric hybrid system consists of a main energy source; an Electric Fuel zinc-air battery; and an auxiliary power source, which in Phase II, consisted of an auxiliary battery. The vehicle draws cruising energy from the zinc-air battery and supplementary power for acceleration, merging into traffic and hill climbing from the auxiliary power source, which in Phase III, will incorporate advanced generation ultracapacitors.

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 battery technology for defense and security products and other military applications and electric vehicles. Electric Fuel also develops, manufactures and markets advanced high-tech multimedia and interactive digital solutions for training of military, law enforcement and security personnel, as well as using state of the art lightweight materials and advanced engineering processes to armor vehicles.

Electric Fuel has corporate and sales offices in New York and London and conducts its research, development and production activities through subsidiaries in Israel and Colorado, and at its production facility in Auburn, Alabama, where it builds and tests advanced batteries for the defense market.

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 Form S-3 registration statements filed in September 2002, 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.