Electric Fuel Announces New Zinc-Air Military Battery

First Military Orders Will be Shipped In February

January 30, 2003 - Electric Fuel Corporation (NasdaqNM: EFCX) announced today a new 12 Volt zinc-air battery for military applications.

The new AZAAP FB battery utilizes the same zinc-air cells developed by Electric Fuel for the US Army's CECOM BA-8180/U battery. CECOM has partially funded Electric Fuel's development of the high-energy AZAPP technology since 1998. Electric Fuel will begin delivery of initial military orders for the 28Ah FB zinc-air battery in February.

"This is the second battery model developed by our R&D team in Auburn, Alabama", said Electric Fuel Chairman and CEO Robert S. Ehrlich. "This is further proof of the great potential our zinc-air technology holds for military applications. Our strategic shift to defense related products, while continuing with our zero-emission hybrid all-electric zinc-air transit bus program, is clearly beginning to pay off."

The Model FB AZAPP is a lightweight, low-cost, disposable zinc-air battery that operates at 12V. With total energy of 400 Wh and specific energy of 350 Wh/kg, the high-capacity FB is expected to replace or supplement lithium batteries in a variety of applications requiring extended mission time. In addition to being lighter and less expensive per watt-hour than primary lithium batteries, the FB battery is also safer and more environmentally friendly.

About Electric Fuel Corporation

Electric Fuel (www.electric-fuel.com) is a world leader in primary and refuelable zinc-air battery technology, pioneering advancements in battery technology for defense and security products, safety products and electric vehicles. In extensive field testing, the recently designated US Army BA-8180/U battery made by Electric Fuel typically provided 4 to 6 times the run time of a BA-5590, a primary lithium battery pack widely used in the military. Electric Fuel batteries for electric transportation have been demonstrated in the US (in a program partly funded by the Federal Transit Administration) powering a full size 40' zero emission transit bus for more than 125 miles. Electric Fuel also produces life jacket emergency lights for air and marine use.

Electric Fuel Corporation, through its three operating units, develops, manufactures and markets security and defense products: primary and refuelable zinc-air battery technology for defense, security and safety products, military applications and electric vehicles; advanced high-tech multimedia and interactive digital solutions for the training of military, law enforcement and security personnel; and state-of-the-art lightweight materials and engineering processes to armor vehicles.

Electric Fuel Corporation is incorporated in Delaware and has corporate and sales offices in New York and Denver with research, development and production subsidiaries in Alabama, Colorado 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 (under the name Electric Fuel Corporation) 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.