SOURCE: Electro Energy Inc.

September 14, 2006 12:19 ET

Electro Energy Receives Major Order for Battery Components From Eagle Picher Technologies

DANBURY, CT -- (MARKET WIRE) -- September 14, 2006 -- Electro Energy Inc. (NASDAQ: EEEI), a developer and manufacturer of advanced rechargeable batteries, announced today that its subsidiary, Mobile Energy Products Inc. (MEP), has received a major purchase order from EaglePicher Technologies (EPT), the world's leading supplier of nickel hydrogen (NiH2) cells and batteries that power space satellites.

The order, valued in excess of $410,000, is for nickel sintered plaque, a key component of EPT's NiH2 batteries; these batteries are the predominant technology for satellite applications. Electro Energy MEP, located in Colorado Springs, Colorado, has been manufacturing nickel sintered plaque for various advanced NiCd and NiH2 applications for many years. Electro Energy expects to ship the current order before the end of 2006.

EPT is the world's leading supplier of nickel-hydrogen cell and battery technology for spacecraft power telecommunications, direct broadcast systems, Earth imaging satellites, scientific platforms, deep space probes and military and global positioning system satellites. It is a subsidiary of Eagle Picher Incorporated, which announced on July 31, 2006, its successful Chapter 11 restructuring as the newly formed EaglePicher Corporation. The current contract is a component of a supply agreement between Electro Energy MEP and EPT.

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 Super NiCd™ batteries, which have flown on 35 space missions with no failures.

Michael E. Reed, CEO of Electro Energy, said, "We have had a strong relationship with EaglePicher for many years, and we are pleased to see the company's successful return to its business of providing battery technologies essential to this nation's military and space endeavors. This is a significant order for our Colorado Springs facility, and our engineers there are moving forward vigorously to fulfill this contract. Deliveries are expected to begin in the Fourth Quarter 2006 and be completed by year-end."

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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