Agreement Boosts Availability of Affordable Lithium Battery Electric Vehicles

NEW YORK, NY and SANTA ROSA, CA -- (Marketwire) -- 07/08/09 -- Leading lithium battery and vehicle manufacturer Advanced Battery Technologies (NASDAQ: ABAT), through its wholly owned subsidiary Wuxi Zhongqiang Autocycle Co., Ltd, has signed a distribution agreement with electric transportation pioneer ZAP (OTCBB: ZAAP).

ZAP CEO Steve Schneider says, "The agreement will enable ZAP to accelerate production of its electric vehicles offering extended range and more power through the use of ABAT's advanced, large-format Polymer Lithium-Ion battery technology."

ABAT's batteries will play an important role in vehicles such as ZAP's XL/XR (extended range) pickup and the Shuttle/XR van as well as the freeway-capable Alias roadster. ZAP is finalizing plans to build these types of vehicles and others in the United States.

"This agreement will further the availability of affordable lithium battery powered electric vehicles," says Mr. Schneider. "By combining our strengths, we believe ZAP and ABAT can expand the use of electric vehicles in many niches."

According to Zhiguo Fu, ABAT's Chairman and CEO, "We are impressed with ZAP's grasp of the electric vehicle market and their approach to the design and distribution of affordable electric vehicles. We believe our battery technology will be an important part of their long-term success."

ZAP expects the first vehicles to incorporate the new battery technology will be ZAP's popular Zappy3 line of scooters. ABAT's technology will give the scooters better performance while reducing the overall weight.

In addition to electric scooters, ZAP expects to cooperate with ABAT on additional electric vehicle development and distribution. The two companies expect to make joint electric vehicle announcements in the near future which include a marriage of ABAT's battery technology and ZAP's pioneering designs in wheel motor technology. ZAP's wheel motors are already mass-produced for its Zappy3 and Zapino vehicles and the company is well down the development path of similar but more powerful designs for traditional, four-wheeled products as well.

For more news and information on ZAP, visit www.IRGnews.com/coi/ZAAP where you can find the CEO's video, a fact sheet on the company, investor presentation, and more.

About Advanced Battery Technologies, Inc.

Advanced Battery Technologies, Inc., founded in September 2002, develops, manufactures and distributes rechargeable Polymer Lithium-Ion (PLI) batteries. The Company's products include rechargeable PLI batteries for electric automobiles, motorcycles, mine-use lamps, notebook computers, walkie-talkies and other electronic devices.