SOURCE: Electro Energy Inc.

August 04, 2006 08:00 ET

Electro Energy Super NiCD Battery Launched on Board KOMPSAT 2 Satellite

Battery Used on 35 Space Missions Since 1988, With No Failures

DANBURY, CT -- (MARKET WIRE) -- August 4, 2006 -- -Electro Energy Inc. (NASDAQ: EEEI), a developer and manufacturer of advanced rechargeable batteries, announced today that the Super NiCd™ battery produced by its subsidiary, Mobile Energy Products Inc. (MEP), was successfully launched on board the KOMPSAT 2 observatory satellite by the Korean Aerospace Research Institute (KARI) on July 28, 2006.

The battery was shipped in February 2004, but due to delays in KARI acquiring an appropriate launch vehicle, the battery was placed in long term storage. It was reconditioned prior to the launch, with no resulting complications.

The Super NiCd™ -- a 37 Ah battery built by Electro Energy's Colorado Springs facility -- has successfully flown on approximately 35 space missions with no failures. Different battery configurations have been built in varying sizes from 5 Ah to 50 Ah and have been used by most prime contractors including Boeing, Lockheed, John Hopkins Applied Physics Laboratory and NASA.

This is the second battery program that MEP has built for the KARI satellite fleet. The original KOMPSAT multipurpose satellite, still in orbit, uses a 21 Ah Super NiCd™ battery and was launched in 1999.

MEP has been manufacturing the Super NiCd™ battery since 1988 and it has proven to be highly reliable for space applications. The battery's advantages include increased cycle life and operation at higher depths of discharge. It provides 30 percent weight savings over standard nickel cadmium battery designs. The battery cells use electro-chemically deposited electrodes, an inert polymer impregnated separator system, and a unique negative electrode that provides extended life.

Electro Energy's Mobile Energy Products facility has been in operation since 1969, manufacturing various batteries and battery cells for many government and commercial applications, including aircraft nickel cadmium batteries and components for NiH2 batteries.

Michael E. Reed, CEO of Electro Energy, said, "The Super NiCd battery is the finest workhorse -- the "Clydesdale" -- of space missions. We are extremely proud of its long record of reliability and success, with no failures in a wide range of applications. South Korea's KOMPSAT 2 launch is the latest achievement in a distinguished career. We sincerely congratulate the talented and dedicated engineers at our Mobile Energy Products facility for this accomplishment."

About Electro Energy Inc.

Electro Energy Inc., headquartered in Danbury, Connecticut, was founded in 1992 to develop, manufacture and commercialize high-powered, rechargeable bipolar nickel-metal hydride batteries for use in a wide range of applications. Its Colorado Springs operation supplies aerospace-grade high quality nickel cadmium batteries and components for satellites, aircraft and other specialty applications. EEEI is also developing high power lithium rechargeable batteries utilizing the Company's proprietary bi-polar design. EEEI has recently acquired significant manufacturing assets near Gainesville, Fla., to accelerate commercialization of its battery technology. For further information, please visit www.electroenergyinc.com.

Certain statements in this news release may contain forward-looking information within the meaning of Rule 175 under the Securities Act of 1933 and Rule 3b-6 under the Securities Exchange Act of 1934, and are subject to the safe harbor created by those rules. All statements, other than statements of fact, included in this release, including, without limitation, statements regarding potential future plans and objectives of the companies, are forward-looking statements that involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Factors that could cause actual results to differ materially from those in the forward-looking statements include, among other things, the following: general economic and business conditions; competition; unexpected changes in technologies and technological advances; ability to commercialize and manufacture products; results of experimental studies; research and development activities; changes in, or failure to comply with, governmental regulations; and the ability to obtain adequate financing in the future. This information is qualified in its entirety by cautionary statements and risk factors disclosure contained in certain of Electro Energy Inc.'s Securities and Exchange Commission filings available at http://www.sec.gov.

Pursuant to a December 1, 2004 agreement, Consulting For Strategic Growth I, Ltd. ("CFSG1") provides Electro Energy with consulting, business advisory, investor relations, public relations and corporate development services, for which CFSG1 receives a fixed monthly fee for the duration of the agreement. Independent of CFSG1's receipt of cash compensation from Electro Energy, CFSG1 may choose to purchase the common stock of Electro Energy and thereafter sell those shares at any time it deems appropriate to do so. For more information, please visit www.cfsg1.com.

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