Electric Vehicle Division News

Electric Fuel and RTC of So. Nevada Agree to Cooperate In Zinc-Air Bus Mini-Fleet Demo In Las Vegas, NV

May 28, 2002 — Electric Fuel Corporation (NasdaqNM: EFCX), the world's leading zinc-air fuel cell company, announced today that the Regional Transportation Commission of Southern Nevada (RTC) has agreed to participate in a proposed demonstration of Electric Fuel's revolutionary zinc-air fuel cell system operating a mini-fleet of transit buses in Las Vegas.

In a press conference held in March 2002 on Capitol Hill, Nevada senators Harry Reid (D) and John Ensign (R) expressed their support for deploying the Electric Fuel zero-emission bus in Southern Nevada. Senators Reid and Ensign also participated in a demonstration drive of Electric Fuel's bus around Washington, DC.

Electric Fuel organized the March bus demonstration in the nation's capital to help the Company obtain bipartisan support in Washington, DC and gain access to budgetary funding for its proposed zinc-air electric bus mini-fleet project. The RTC's role in the new mini-fleet program will be to operate the buses.

"I hope that the RTC's commitment to participate in the next phase of demonstrating Electric Fuel's zinc-air fuel cell technology will assist in a successful acquisition of the desired funding," said Jacob L. Snow, the RTC's General Manager.

Electric Fuel's zinc-air electric bus is the nation's first practical zero-emission transit bus, designed to provide enough energy to power a full-sized city bus for a full day's driving on a single refueling. The bus, developed with support from the Federal Transit Administration and the BIRD Foundation, has been extensively track-tested as part of an ongoing FTA demonstration and evaluation program.

Electric Fuel President and CEO Yehuda Harats said, "The RTC's early commitment to participate in the demonstration program is an important vote of confidence in the zinc-air fuel cell system. We look forward to seeing our buses running on the streets of Las Vegas and in due course, on a commercial basis in cities across America. Based on the strong congressional and government support we have received thus far, we anticipate gaining the necessary funding for this important program."

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.