SOURCE: Advanced Battery Technologies, Inc.

May 16, 2007 08:30 ET

Advanced Battery Technologies, Inc. Reports Record 2007 First Quarter Results

Revenues up 181% and Net Profit up 498% for the First Quarter 2007

HARBIN, CHINA -- (MARKET WIRE) -- May 16, 2007 --Advanced Battery Technologies, Inc. (OTCBB: ABAT), a developer and manufacturer of rechargeable Polymer-Lithium-Ion (PLI) batteries, today announced that it has achieved significant improvements in its operational performance for the first quarter 2007, and remains optimistic about its performance for the fiscal year 2007.

Revenues for the first quarter 2007 were $5,363,923 compared to $1,908,997 for the same period 2006, an increase of $3,454,926, or approximately 181%. General and administrative expense for the first quarter 2007 totaled $1,266,652, or approximately 24% of revenue, compared to $345,169, or approximately 18% of revenue for 2006. Gross margins on sales for the quarter improved to about 49% compared to 37% during the same period in 2006. The company reported first quarter 2007 net profit of $1,338,038, or $0.027 per fully diluted share, up from 296,120, or $0.007 per fully diluted share for the same period 2006. Representing about a 498% gain in net profit. Capital funds, all equity, stood at $22,958,640.

Mr. Zhiguo Fu, CEO and chairman of ABAT, said, "This was a rewarding quarter in the development of our company. These strong results were achieved despite the Chinese custom of closing plant operations for a two-week holiday period in recognition of the Chinese New Year. This occurred between February 17, and March 4, 2007 and affects all industry in PRC. Despite this holiday closing our company experienced record first quarter results. The strong increase in revenue was attributable to the successful expansion of our manufacturing capabilities; our effort to aggressively expand our sales activities; and our ability to develop and integrate products." Further, Mr. Fu cautioned investors that because of this customary Chinese New Year plant closing, first quarter results for all PRC industrial companies, ours included, should not be viewed as a proxy for full year results.

Mr. Fu also said, "This growth reflects the continued demand for our advanced PLI battery technologies and related products. In addition, we continue to solicit new orders from both existing and new customers, which will place us strongly into the global battery market and as such, we are optimistic for the balance of 2007 and beyond. Management wishes to express its appreciation for the continuing strong support from shareholders and employees over the past quarter."

About Advanced Battery Technologies, Inc.

Advanced Battery Technologies, Inc., founded in September 2002, develops, manufactures and distributes rechargeable Polymer Lithium-Ion (PLI) batteries. The Company's products include rechargeable PLI batteries for electric automobiles, motorcycles, mine-use lamps, notebook computers, walkie-talkies and other electronic devices. ABAT's batteries combine high-energy chemistry with state-of-the-art polymer technology to overcome many of the shortcomings associated with other types of rechargeable batteries. The Company has a New York office, with its executive offices and manufacturing facilities in China.

For more information about Advanced Battery Technologies, Inc. (ABAT), please visit: http://www.abat.com.cn.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995

This news release contains forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, may involve risks, uncertainties and other factors that may cause the company's actual results to be materially different from any future results or performance suggested by the forward-looking statements in this release. These risks and uncertainties include, without limitation, risks that the results of future performance will not be consistent with the forward-looking statements, risks that the backlog will not be fulfilled due to reasons of either the Company or the customer, and the risks that the batteries of competitors receive better market acceptance than those of the Company's PLI batteries. We undertake no obligation to revise or update publicly any forward-looking statements.

Contact Information

  • For Additional Information:

    Advanced Battery Contact:

    Ms. Lynne Lu
    21 West 39th Street
    New York, NY 10018
    Tel: (212) 391-2752