Electric Fuel's Interactive Training Subsidiary Wins
$2.6 Million German Police Contract

More than $8 million of backlog orders for Simulators, Batteries and Armored Vehicles

January 14, 2003 — Electric Fuel Corporation (NasdaqNM: EFCX) a leader in defense and security products for military and homeland security, announced today that its "use-of-force" training subsidiary, IES Interactive Training, Inc., was awarded a $2.6 million contract for supplying simulation training systems to the largest regional division of the German Police.

"Winning this bid in Germany is clear evidence of our technology's performance," said Greg Otte, president and CEO of IES. "We now feel confident that our training solutions will also be well received in other European nations."

The tender was awarded to the Company after an extensive performance review process and a series of program specifications changes. Shipments to Germany are scheduled to begin in March 2003.

Electric Fuel President & CEO Robert S. Ehrlich commented, "This contract marks the Company's entry into the coveted European simulation training market. We were awarded this contract over a host of prestigious global competitors due to our groundbreaking technology and unprecedented performance. With this order, the Company looks forward to gaining a foothold in Europe and accomplishing its goal of reaching 'break-even' during the second half of 2003."

Electric Fuel's $8 million backlog of orders now includes $2.6 million for zinc-air batteries to the US Army, $2.9 million for armored vehicles and this $2.6 million German order for simulators.


About IES Interactive Training

IES Interactive Training, a wholly-owned subsidiary of Electric Fuel Corporation, is a world-leading manufacturer of hi-tech multimedia and interactive digital training solutions to corporations, government agencies and military and law enforcement professionals around the globe. Through the incorporation of a unique solution-driven philosophy and an experienced team of interdisciplinary professionals, IES has assumed a leadership role in delivering products that set the industry standard for interactive simulation training systems. Its focus is to develop and sell advanced multimedia training systems specifically targeted for law enforcement and firearms training. For further information about IES, please visit www.ies-interactive.com.

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 products, military applications and electric vehicles. Through its IES subsidiary, the Company develops, manufactures and markets advanced high-tech multimedia and interactive digital solutions for the training of military, law enforcement and security personnel, and through its majority owned MDT subsidiary, the Company uses state-of-the-art lightweight materials and engineering processes to armor vehicles for the military, special forces and private concerns.

Electric Fuel has corporate and sales offices in New York and Denver with research, development and production subsidiaries in the United States and Israel.


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; changing economic conditions; delay, cancellation or non-renewal of purchase orders; significant future capital requirements; the Company’s ability to quickly and smoothly execute the change in leadership as a result of its former CEO’s resignation; 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 most recent Quarterly Report on Form 10-Q, 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.