PLYMOUTH MEETING, Pa., Jan. 12 /PRNewswire/ -- Lithium Technology
Corporation (the "Company" or "LTC") (OTC Bulletin Board: LITH) today
announced that it has signed a Letter of Intent with one of the world's
largest Personal Computer (PC) manufacturers to provide LTC's proprietary
lithium-ion polymer batteries for a specific notebook computer application,
beginning this year.
    Since May 1997, the PC manufacturer has been testing lithium-ion polymer
cell samples produced on LTC's pilot line, and the Company has been working
the past few months on the customized multiple cell battery pack prototypes.
Under the terms of the definitive agreement being negotiated, LTC would
continue development of a customized prototype battery pack during the first
half of 1998, leading to initial commercial production later in the year.
    As part of the agreement, the PC manufacturer would make a $1 million
equity investment in LTC, which would be in addition to its earlier $500K
investment in the Company as part of the $5.5M private placement announced in
September 1997.  With the signing of the Letter of Intent, the PC manufacturer
is in the process of releasing $100,000 of the $1 million to LTC.
    Company President David J. Cade said: "This important relationship with a
globally prominent notebook computer manufacturer gives us the commitment to
make them the first volume customer for our thin, flat, lightweight
batteries."  LTC's Executive Vice President of Operations and Chief Technical
Officer, Dr. George R. Ferment, added: "We are now in a much better position
to scope our production capacity requirements and related equipment
configurations for 1998 and 1999 as we work together with Elite Material
Company of Taiwan to finalize our lithium-ion polymer strategic manufacturing
partnership."
    Lithium Technology Corporation is developing a new generation of solid
state rechargeable batteries for portable electronics devices, such as
notebook computers and cell phones.  The Company's patented and proprietary
technology uses high performance fibers in composite battery structures and
low cost web coating and handling processes for manufacturing.

    The foregoing information contains forward-looking statements which
involve risks and uncertainties relating to such matters as financial
performance, technology development, completion of mutually satisfactory
agreements, and business prospects.  A variety of factors could cause Lithium
Technology's actual results and experience to differ materially from
anticipated results or other expectations expressed in these forward-looking
statements.

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