---

Madison Announces Incorporation of Oxygen S.p.A. in Italy

13 July 2000

Madison Announces Incorporation of Oxygen S.p.A. in Italy

    NEW YORK - Madison Capital Group, USA, LLC, acting as financial advisor to 
the participating investors, today announced the incorporation of OXYGEN, S.p.A. 
in Italy.

    Oxygen S.p.A. has been created to provide a complete transportation
solution including non-polluting electric two-wheeled vehicles and the
necessary infrastructure to make these vehicles truly feasible and affordable.
Oxygen's capabilities take full advantage of the accelerating legislative
initiatives by municipal and national governments throughout Europe to fight
inter-city vehicular pollution caused by gasoline combustion engines by
restricting their use and encouraging the use of electric powered vehicles.
Oxygen will provide consumers with vehicles with state-of-the-art batteries
from Evercel and will develop a complete network of recharging,
leasing/exchange and service stations for its customer base.  Evercel, Inc.
will supply their state-of-the-art batteries and is an initial
investor.

    "The success of this venture is predicated on the combination of the best
scooter and other vehicle designs, the state-of-the-art battery and the
infrastructure and financial structure that makes owning an electric vehicle
easy and enjoyable.  Oxygen is the only company that can offer the entire
package," said Michele Hausmann, managing director, Madison Capital Group.

    Robert L. Kanode, president and C.E.O. of Evercel said: "We're proud to be
part of Oxygen S.p.A. because we see it as the first sensible approach to
making electric vehicles happen.  Oxygen S.p.A fulfills all of the consumer's
needs and expectations for electric vehicle use."

    Evercel, is a leading manufacturer of high-performance, environmentally 
friendly and cost-effective nickel-zinc rechargeable batteries for a wide range 
of applications, including scooters, electric bicycles, electric vehicles, 
trolling motors for boats, lawn mowers, electric wheelchairs and golf carts.  
The Company, headquartered in Danbury, Connecticut, operates manufacturing 
facilities in the U.S.A., and in Xiamen, China.  In China, Evercel operates as 
Xiamen Three Circles-ERC Battery Corp., Ltd., a joint venture.

    Madison Capital, is a private investment banking firm based in New York, NY,
specializing in corporate finance, mergers and acquisitions, and other cross-
border transactions and financial advisory services between the United States 
and Europe.