SOURCE: Altair Nanotechnologies

April 04, 2005 10:05 ET

Altair Nanotechnologies Signs Agreement With Advanced Battery Technologies, Inc.

Chinese Factory to Incorporate Altair Battery Materials in Specialty Batteries for Electrically Powered Autos and Buses

RENO, NV -- (MARKET WIRE) -- April 4, 2005 -- Altair Nanotechnologies, Inc. (NASDAQ: ALTI) and Advanced Battery Technologies, Inc. (OTC BB: ABAT) a U.S. and Chinese-owned company with factories in Harbin, People's Republic of China, announced today that they have signed a mutually exclusive development agreement for lithium polymer batteries in China. This agreement covers the incorporation of Altair's battery electrode nano-materials into ABAT's existing polymer battery product lines. Terms of the agreement were not disclosed.

Altair's lithium ion battery electrode materials, which provide rapid recharge cycles and potentially longer life for rechargeable batteries, have generated interest from U.S. and international battery manufacturers. The agreement with ABAT specifically focuses on development of high power, lithium polymer batteries for use in electric vehicles. ABAT is China's leading high capacity advanced lithium polymer battery supplier and has been manufacturing high capacity batteries since 2003. The company, with 1200 employees and projected revenues of $40 million for 2005, manufactures lithium polymer batteries that are used in electric buses, automobiles, motorcycles and mining equipment. ABAT is completing the installation and commissioning of their third manufacturing line in Harbin, China.

"We are very pleased to be teaming with Altair. We believe that by using the Altair anode and cathode nano-materials in our batteries, new markets will open up because of the fast charge time," said Mr. Zhiguo Fu, Chairman of ABAT. "And, the superior life cycle performance of the electrodes will enable us to deliver a more economical solution."

"ABAT has built a reputation as a state-of-the-art polymer lithium ion battery manufacturing company with their focus on high capacity, environmentally friendly battery designs," commented Altair Nanotechnologies CEO Dr. Alan J. Gotcher. "In our first of multiple market applications for Altair's nanotechnology-based battery electrode materials, we are delighted to partner with a company such as ABAT for the electric vehicle market in China."

ALTAIR NANOTECHNOLOGIES INC.

Altair Nanotechnologies, through product innovation, is a leading supplier of advanced ceramic nanomaterial technology worldwide. Altair Nanotechnologies has assembled a unique team of material scientists who, coupled with collaborative ventures with industry partners and leading academic centers, have pioneered an impressive array of intellectual property and product achievements.

Altair Nanotechnologies has developed robust proprietary technology platforms for manufacturing a variety of crystalline and non-crystalline nanomaterials of unique structure, performance, quality and cost. The company has a scalable manufacturing capability to meet emerging nanomaterials demands, with capacity today to produce hundreds of tons of nanomaterials.

The company is organized into two divisions: Life Sciences and Performance Materials. The Life Sciences Division is pursuing market applications in pharmaceuticals, drug delivery, dental materials, cosmetics and other medical markets. The Performance Materials Division is pursuing market applications in Advanced Materials for paints and coatings; titanium metal manufacturing, catalysts and water treatment; and alternative energy. For additional information on Altair and its nano-materials, visit www.altairnano.com

Altairnano™, Altair Nanotechnologies, Inc.®, Altair Nanomaterials™, Altairnano™ TiNano®, RenaZorb™, NanoCheck™, TiNano Spheres™ and the Hydrochloride Pigment Process™ are trademarks or registered trademarks of Altair Nanotechnologies, Inc.

Advanced Battery Technologies Inc. (ABAT)

ABAT develops, manufactures and distributes rechargeable Polymer Lithium-Ion (PLI) batteries. The Company's products include rechargeable PLI batteries for mine-use lamps, electric automobiles, motorcycles, cellular phones, notebook computers, walkie-talkies and other personal electronic devices. ABAT's batteries combine high-energy chemistry with state-of-the-art polymer technology, and overcome many of the shortcomings associated with other types of rechargeable batteries.

The Company began operations in September of 2002 and has made tremendous progress in the past twenty months. ABAT has gone from a startup, to a fully functional, leading edge, technology driven, product development and manufacturing company. ABAT has also accumulated a roster of pending patents for its battery technology and plans on developing additional unique energy related products. The Company operates in the highest growth sector of the battery industry, with PLI batteries projected to account for one fourth of the market for IT and communications devices by 2005.

Forward-Looking Statements

This release may contain forward-looking statements as well as historical information. Forward-looking statements, which are included in accordance with 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 and performance in future periods 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, the risks that, in light of the fact that the proposed joint venture is presently being formed and has no customer commitments, the joint venture will not commence operations or attract any feasibility work, design, construction, licensing, consulting or other opportunities; the risks that costs associated with operating the joint venture may exceed associated revenues; the risks that, in the near- term, revenues will be limited to service revenues, which will unlikely be substantial; the risks that, the development agreement with ABAT will not be successful in attracting a long-term licensee of the battery electrode technology for a commercial production, and the risks that either Altair or ABAT will withdraw from the development agreement as a result of a re-focus of its business strategy, financial or other internal problems or a dissatisfaction with the progress and results of the development agreement. In addition, other risks are identified in the company's most recent Annual Report on Form 10-K, as filed with the SEC. Such forward-looking statements speak only as of the date of this release. The company expressly disclaims any obligation to update or revise any forward-looking statements found herein to reflect any changes in company expectations or results or any change in events.

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