Electric Fuel Awarded GSA Contract for Zinc-Air Batteries

Federal Supply Schedule Contract #GS07F-0055N valid through September 30, 2007

October 9, 2002 — Electric Fuel Corporation (NasdaqNM: EFCX), announced today that it was awarded a Federal Supply Schedule contract (#GS07F-0055N) by the General Services Administration (GSA), making Electric Fuel's zinc-air batteries widely available to all branches and agencies of the federal government including the Department of Defense (DoD).

The Electric Fuel products now available on the GSA schedule include:

• Advanced Zinc-Air Power Packs (AZAPPs) for military applications, including the Company's Model FC AZAPP, which was recently was assigned a National Stock Number (NSN) by the U.S. Army Communications Electronics Command (CECOM);
  
• 12V Zinc-Air Power Packs (ZAPPs) for high-power portable devices in Homeland Security applications; and
  
• Electric Fuel's line of INSTANT POWER® batteries for cellphones, PDAs, camcorders and digital cameras.

In addition, Electric Fuel's approved Federal Supply Schedule Catalogue includes a variety of connectors, adapters and other accessories for the batteries.

As a result of the GSA contract being in place, government agencies can now procure Electric Fuel's zinc-air batteries through the auspices of the GSA without the need for an additional bid or formal procurement process.

"In addition the normal bid and procurement process of our military business," commented Electric Fuel President and CEO Yehuda Harats, "the GSA contract will allow us to service all agencies of the US government better and meet their portable power demands."

About the U.S. General Services Administration (GSA)

GSA is a centralized federal procurement and property management agency created by Congress to improve government efficiency and help federal agencies better serve the public. It acquires, on behalf of federal agencies, office space, equipment, telecommunications, information technology, supplies, and services. GSA, comprised of 14,000 associates, provides services and solutions for the office operations of over 1 million federal workers located in 8,300 government-owned and leased buildings in 1,600 U.S. communities. For further information, please visit www.gsa.gov.

About Electric Fuel

Electric Fuel Corporation (www.electric-fuel.com) is a world leader in primary and refuelable zinc-air fuel cell technology, pioneering advancements in battery technology for defense and security applications, electric vehicles, and consumer electronics (with its Instant Power line of batteries and chargers). Electric Fuel also develops, manufactures and markets advanced hi-tech multimedia and interactive digital solutions for training of military, law enforcement and security personnel, as well as using state of the art lightweight materials and advanced engineering processes to armor vehicles.

Electric Fuel has corporate and sales offices in New York and London and conducts its research, development and production activities through subsidiaries in Israel and Colorado, and at its production facility in Auburn, Alabama, where it builds and tests advanced batteries for the defense market.

Except for the historical information herein, the matters discussed in this news release include forward-looking statements, as defined in the Private Securities Litigation Reform Act of 1995. Readers are cautioned not to place undue reliance on these forward-looking statements, as they are subject to various risks and uncertainties that may cause actual results to vary significantly. These risks and uncertainties include, but are not limited to, risks relating to: product and technology development; the uncertainty of the market for Electric Fuel's products; market acceptance of new products and continuing product demand; the ability to manage growth and ramp-up production effectively as needed; the impact of competitive products and pricing on Electric Fuel's products and markets; changing economic conditions; delay, cancellation or non-renewal of purchase orders; significant future capital requirements; and other risk factors detailed in Electric Fuel's most recent annual report on Form 10-K for the fiscal year ended December 31, 2001, Electric Fuel's Form S-3 registration statements filed in September 2002, and other filings with the Securities and Exchange Commission. Electric Fuel assumes no obligation to update the information in this release. Reference to the Company's website above does not constitute incorporation of any of the information thereon into this press release.