News Release

PowerGenix Supplies Batteries to North American Light Electric Vehicle Market

Nickel-Zinc Batteries to Provide Zero Emission Power Supply for Veloteq Corporation ebikes

San Diego - September 2, 2008 - PowerGenix, manufacturer of nontoxic, safe, high performance rechargeable nickel-zinc (NiZn) batteries, today announced that it has entered into a supply agreement with PowerEagle, the leading manufacturer of electric bicycles in China. Under the agreement, PowerGenix will supply its NiZn cells for pack fabrication into the entire product line offered by Veloteq, PowerEagle's North American sales and distribution partner, beginning in 2009.

PowerGenix's power systems will be featured in both Veloteq's "power-on-demand" models, powered exclusively by the electric motor, as well as "power-assist" models that require manual pedaling assisted by the electric motor. PowerGenix batteries will also be incorporated in future product developments including an electric motorcycle that complies with National Highway Traffic Safety Administration (NHTSA) standards. PowerGenix's batteries offer market-leading power density and reduced pack weight, allowing Veloteq to increase the power output and range of their bikes while still achieving battery pack weight savings of 60 percent.

By providing more power and runtime in a smaller and lighter form factor, PowerGenix's NiZn batteries allow ebike users to travel 40 miles on a single charge costing as little as 3 cents, five to six times less expensive compared with lead-acid batteries. In addition, charge time is cut down 75 percent to about 1 to 2 hours, providing enhanced mobility and longer travel ranges for ebike commuters.

PowerGenix's NiZn batteries also offer greater durability, extending the power system's useful lifespan by more than double that of lead acid batteries. Further, PowerGenix's NiZn batteries provide a cleaner environmental alternative and have received RoHS compliance, certification that they contain no toxic heavy metals such as lead.

"We've found the silver bullet with PowerGenix's NiZn batteries - the unparalleled power-density enables us to achieve optimum performance while reducing power system size and weight," explained Jim Wood, President of Veloteq. "We investigated both nickel metal-hydride and lithium-ion technologies, but found that under deep discharge conditions only PowerGenix's NiZn provided the high storage capacity our robust power systems require while meeting Veloteq's strict safety and reliability mandates."

"PowerGenix's NiZn batteries are the ideal technology to meet the growing demand for light electric vehicles driven by soaring gas prices and growing environmental concerns over tailpipe emissions," said PowerGenix CEO Dan Squiller. "Partnering our nontoxic, safe and recyclable battery packs with Veloteq's industry leading pollution-free vehicle transport fits perfectly with our focus on high-performance and environmental care."

PowerGenix powered ebikes and the new Veloteq Vader electric motorcycle will be on display at the Veloteq booth (#5981) at Interbike2008 expo in Las Vegas, Nevada from September 24-26, 2008.

About PowerGenix
PowerGenix has developed and patented a high-energy density, high-cycle life and low-cost Nickel-Zinc battery targeting the market for energy intensive electronics and hybrid electric vehicles (HEVs). Specifically designed to utilize existing Nickel-Cadmium manufacturing processes, techniques and equipment, PowerGenix offers the supply chain scaling and security OEMs require. With its patented rechargeable Nickel-Zinc battery technology, PowerGenix is pursuing applications to replace existing Nickel-Cadmium and Nickel Metal Hydride batteries in the multi-billion dollar rechargeable battery market.

About Advent International
Founded in 1984, Advent International is one of the world's leading global private equity firms, with offices in 15 countries on four continents. A driving force in international private equity for more than two decades, Advent has built an unparalleled global platform of over 120 investment professionals across Western and Central Europe, North America, Latin America and Asia. Since inception, Advent has raised $24 billion in private equity capital and completed more than 250 buyout and private equity transactions valued at over $40 billion in 40 countries. For more information, visit www.adventinternational.com

About Angeleno Group
Angeleno Group (AG) is a Los Angeles-based private equity firm focused on high-growth investments in the energy sector. AG makes investments broadly across the energy industry to support innovative, well-managed, rapidly growing companies. www.angelenogroup.com

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Bessemer Venture Partners is a global investment group with offices in Silicon Valley, Boston, New York, Bangalore, Mumbai, Beijing, and Tel Aviv. As the oldest venture capital practice in the United States, Bessemer has partnered as an active, hands-on investor in Ciena, Ingersoll Rand, Parametric, Skype, Staples, VeriSign and W.R. Grace and over 100 other companies that have gone public. To learn more, visit www.bvp.com

About Braemar Energy Ventures
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About Granite Ventures, LLC
Granite Ventures has been helping early-stage technology companies build solid foundations for success since 1992. Granite has managed over $1 billion in venture capital and has invested in more than 100 private companies. They partner with promising and successful entrepreneurs to create businesses that have a competitive edge, and help those businesses achieve category leadership. More information can be found at www.granitevc.com

About OnPoint Technologies, Inc.
OnPoint Technologies is a strategic early-stage venture investor with a mission to discover, invest in and support companies developing innovative technology at the intersection of the commercial and defense markets. For more information on OnPoint, please visit their website at www.onpoint.us

About Technology Partners
Technology Partners is a 24 year venture capital firm that has managed more than $750 million of investment capital with current investments being made from Technology Partners Fund VIII. The firm has invested in more than 100 companies in a variety of industries serving principally as a lead investor. The firm is regarded as one of the pioneering firms in Cleantech, having invested half its capital into Energy Technology, Water Technology, and Advanced Materials for many years - and the other half into Life Sciences. For more information on Technology Partners, go to www.technologypartners.com

Media Contact: Skye Laudari, Antenna Group (for PowerGenix) 415-977-1925, skye@antennagroup.com