SOURCE: Advanced Battery Technologies, Inc.

May 12, 2008 08:28 ET

Advanced Battery Technologies Reports First Quarter 2008 Record Revenues, Earnings Results

87% Increase in Revenues and Net Profit up 187% for the First Quarter 2008

NEW YORK, NY and HARBIN, CHINA--(Marketwire - May 12, 2008) - Advanced Battery Technologies, Inc. (NASDAQ: ABAT) today announced that it has achieved significant improvements in its operational performance for the first quarter 2008, and is very optimistic about its performance for the remainder of fiscal year 2008. Advanced Battery Technologies, Inc., founded in September 2002, develops, manufactures and distributes rechargeable Polymer Lithium-Ion (PLI) batteries. Advanced Battery Technologies, Inc., products include rechargeable PLI batteries for electric automobiles, motorcycles, mine-use lamps, notebook computers, walkie-talkies and other electronic devices.

Revenues for the first quarter ended March 31, 2008 were a record $10,031,969 compared to $5,363,923 for the same 2007 period, an increase of approximately 87%. Advanced Battery Technologies realized net income of $3,848,478, representing $.08 per share, after $629,445 in taxes for the quarter ended March 31, 2008. For the quarter ended March 31, 2007, the Company's pre-tax income of $1,338,036 was identical to its net income, representing $.03 per share. The 2008 quarter represents about a 187% gain in net profit.

Advanced Battery Technologies realized a 50% gross margin on its sales in the first quarter of 2008, approximately equal to the 49% margin achieved in the first quarter of 2007, but better than the 43% margin achieved for its entirety of 2007. Operating expenses decreased by 121% from $1,265,653 for the first quarter of 2007 to $571,890 in the first quarter of 2008. The disparity occurred because during the quarter ended March 31, 2007 as the Company incurred a one-time compensation charge of $893,896, arising from a bonus granted to management in 2007.

Mr. Zhiguo Fu, CEO and chairman of ABAT, said, "This was a record breaking quarter in the development of our company. The strong increase in revenue was attributable to our effort to aggressively expand our sales activities, and our ability to develop and integrate new products." Further, Mr. Fu stated, "Our research and development expenses were $ 4,325 for the three months ended March 31, 2008 and $ 43,347 for the three months ended March 31, 2007. The low level of our R&D expenses is attributable to the fiscally responsible partnerships we have with the different Institutes."

Mr. Fu added, "Our production capacity at current normal operating hours is about $45 million per year. With a backlog of approximately $57 million for delivery throughout the next 21 months we are confident we can continue to meet our aggressive targets going forward, while still developing company favorable options to increase added production capacity. This growth reflects the continued demand for our advanced PLI battery technologies and related products. In addition, we are optimistic for the balance of 2008 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

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    John Tsemberides
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    New York, NY 10005
    (212) 400-2337
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    john@informedir.com