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BAT SuperCar Gets 81 m.p.g. at 55 mph

31 August 1998

BAT SuperCar Gets 81 m.p.g. at 55 mph, Beats Toyota Prius by 19 m.p.g.(30%)
    BURBANK, Calif., Aug. 31 -- BAT International's
(OTC-Bulletin Board: BAAT) "BAT SuperCar" has achieved over 81 miles per
gallon (mpg) at 55 miles per hour (mph) on a Coastal California freeway in a
certified fuel economy comparison.  BAT's test vehicle significantly surpassed
the performance of a Toyota Prius hybrid electric vehicle (referred to by some
as the most fuel efficient production vehicle in the world), which achieved
62 m.p.g. in the same 55 mph highway field test.  This represents an increase
in fuel economy of 19 m.p.g. or 30% improvement.  The test involved
three duplicate 31 mile runs on a 15 mile stretch of Interstate 5 in Southern
Orange County that included hills, on-off ramps, medium to heavy traffic and
other typical highway driving conditions.  Jim Heffel from the University of
California Riverside, Engineering College certified results as an independent
contractor.
    BAT International achieved this high fuel economy using a standard Geo
Metro four-door sedan equipped with a Yanmar diesel engine that was modified
with BAT's proprietary Dolphin Pulse Charge technology.  Dolphin Pulse Charge
technology involves only minor modifications to both gas and diesel production
engines that BAT believes can easily be incorporated in auto company engine
production lines with only a minimal impact on cost.  The Toyota Prius, while
a very finely engineered vehicle with excellent performance characteristics,
utilizes a drive system with both a gasoline engine and electric motor.  This
leads to higher production costs.  Industry estimates are that the production
cost is approximately double the current retail price in Japan (sales price is
now $16,000).
    The "Battle of the SuperCars" will continue!  Field testing will shift
soon into the urban drive cycle, where BAT SuperCar performance will be
compared to the Toyota Prius in one of several "urban loops" established in
Southern California to verify "city" fuel economy.  The Toyota Prius is
expected to do very well in this drive cycle because of the benefits from
their dual drive system.  These advantages include an on-board computerized
management program that automatically switches energy requirements from
electric to internal combustion engine or allows use of both systems
simultaneously to achieve the most efficient use of power.  During braking
conditions, ordinary cars burn energy while braking.  The Prius uses the
on-board electric motor as a generator to stop the car and put energy back in
the batteries for use during driving.  The BAT SuperCar must rely entirely on
fuel efficiency benefits derived from Dolphin Pulse Charge technology to
overcome these significant Prius advantages. Even given these handicaps, BAT
believes it can perform well.
    Additional field test options are being considered.  Once adequate data in
the field has been obtained, BAT will put the BAT SuperCar in an independent
test lab and obtain dynomometer test data on the vehicle, including fuel
economy and emission measurements.  At the end of track, field and dynomometer
test phases, a white paper will be prepared by BAT and certification teams for
peer review and dissemination to government agencies and interested auto
industry representatives.  Details about the test can be obtained by going to
BAT's special SuperCar web site (http://www.batsupercar.com) which is being
updated on a regular basis.  The SuperCar site includes information about
track and highway testing and Dolphin Pulse Charge technology.
    Broadcast quality video of the highway testing has been shot by a
professional camera crew hired by BAT and will be available to news teams
interested in providing coverage of the results of the field trials.  A
network consisting of 110 TV stations has requested footage of the event and
some of the member stations may carry footage in their news programs in the
near future.
    BAT SuperCar results are particularly significant in light of the
declining average fuel economy of the U.S. auto fleet as there is a rapid
shift to purchase of sport utility vehicles and light trucks. There is
increasing concern about the effects of inefficient vehicles and trucks on CO2
emissions and the impact on Climate Change.  The recent agreement to reduce
greenhouse gas emissions by the Year 2008, including a 7-9% reduction by
Japan, Europe and U.S., is creating a lot of pressure on auto companies to
make drastic improvements in fuel economy.  A U.S. Government R&D partnership
with the "Big Three" U.S. Auto Companies, Partnership for a New Generation of
Vehicles (PNGV) is supposed to lead to the development of a five passenger
sedan with a fuel economy of 80 miles per gallon by 2006.  Hundreds of
millions of dollars have been spent on this program, but prototypes developed
by auto companies have not been able to reach the goal and some technologies
are very expensive to manufacture.  BAT technology offers a compelling
alternative that could allow auto companies to quickly achieve the 80 m.p.g.
goal within a much shorter production time frame.
    BAT International is organized as a holding company with major ownership
position in a set of subsidiary companies now commercializing advanced
automotive and energy technology products developed by BAT over the last
six years, including Dolphin Pulse Charge technology.  Other products include
advanced lubricant additives, electric vehicles, advanced batteries and power
electronics, electric bicycles & scooters, and electric power generation.  For
information, see BAT web site http://www.baat.com or call Cheryl Mitchell,
360-384-2730.

    This press release contains forward-looking statements that should not be
used to make an investment decision.  Please refer to our web site at
http://www.baat.com and other sources for more detailed Company information or
call Cheryl Mitchell, 360-384-2730.