Evercel Announces New Electric Scooter Initiative in Asia

Flying Electric Motor Co., Ltd. orders 400 of Evercel's nickel-zinc batteries valued at approximately $50,000 with projected 2001 demand for an additional 20,000 Evercel batteries valued at approximately $2,000,000.

Published: 14-Dec-2000

DANBURY, Conn., Dec. 14 /PRNewswire/ -- Evercel, Inc. (Nasdaq: EVRC), a leader in the development and manufacture of advanced rechargeable batteries, today announced that its joint venture in China, Xiamen Three Circles-ERC Battery Corp., Ltd., has received an order for its premium rechargeable nickel-zinc batteries from the Flying Electric Motor Co., Ltd. to be used in a new line of electric scooters for the Taiwan market. The initial order is for 400 of Evercel's nickel-zinc batteries valued at approximately $50,000. Further, Flying Electric Motor Company's projected 2001 demand is for 20,000 additional Evercel batteries valued at approximately $2,000,000.

"We are very pleased that Flying Electric Motor has selected our batteries for use in their new scooter line," said Robert L. Kanode, president and CEO of Evercel. "We have been working to identify the ideal markets and partners worldwide to introduce our products and this deal represents another great market opportunity. Flying Electric Motor will use a direct-to-consumer sales model by which consumers can purchase light weight, high performance electric scooters powered by Evercel's patented nickel-zinc premium performance batteries."

Flying Motor Co., Ltd. is a newly established electric scooter manufacturer in Taiwan. Its chairman, Zhuang Tian Guang, also owns two TV shopping channels on which he plans to sell directly to consumers.

Government incentives help prime the market

On December 1, 2000, the Taiwan Environment Protection Bureau (EPB) officially announced that the government would continue subsidizing electric scooter manufacturers to accelerate industry development, with a new incentive policy that takes effect on January 1, 2001. The declaration demonstrated the determination of the Taiwan Government to develop the electric scooter industry to help solve Taiwan's serious air pollution problem.

According to the new incentive standard, Evercel's rechargeable nickel-zinc battery is the only high-performance battery that can enjoy the highest incentive of NT $20,000 per electric scooter (US $645).

Furthermore, the government has entered into an agreement with five electric scooter manufacturers in order to encourage the adaptation of high-performance batteries instead of lower performance lead-acid batteries. According to the agreement, both the EPB and manufacturers have the responsibility to take the following actions to develop the electric scooter industry:

    1.  EPB encourages the manufacturers to adopt the new generation of high          performance batteries to replace lead-acid batteries.      2.  The incentive will be granted according to the purchase cost of the          battery, and the subsidized battery must pass the official test          conducted by Energy & Resources Laboratory (ERL) of the Industrial          Technology Research Institute in advance.      3.  The sales volume of all electric scooter manufacturers must reach          20,000 units in 2001, or the government will cancel the policy.      4.  The manufacturers must offer a one-year guarantee of vehicle and          battery without any mileage limitation.  

ERL is an authoritative government battery test organization in Taiwan. It was commissioned by the EPB to perform the simulated test to help the government determine the corresponding incentive amount. The Evercel battery passed the test at the end of 1999, and acquired the simulated cumulative distance of 14,142 km.

About Evercel

Evercel, Inc., (http://www.evercel.com) is a leading manufacturer of high-performance, environmentally friendly and cost-effective nickel-zinc rechargeable batteries for a wide range of applications, including scooters, trolling motors for boats, electric bicycles, electric vehicles, lawn mowers electric wheelchairs and golf carts. The Company, based in Danbury, Connecticut, operates manufacturing facilities in Newport News, Virginia, and in Xiamen, China. In China, the Company operates as Xiamen Three Circles-ERC Battery Corp., Ltd., a joint venture.

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