Evercel, Inc. (Nasdaq: EVRC), has signed a joint Memorandum of Understanding with Oxygen, S.p.A. and Eurosolare, the solar energy division of the ENI Group of Italy to develop a series of solar powered electric vehicle maintenance and charging stations in key areas of major cities in Italy for use with Evercel's nickel-zinc batteries and traditional batteries.

The charging stations will be used with Oxygen's two wheeled electric vehicles as well as other electric vehicles and will feature the unique option to publicly fast-charge the Evercel nickel-zinc battery in approximately 15 minutes.
The first "stations" are planned for Rome (two) and Palermo (one) by December 31, 2000, with other major cities to follow. Minimum expansion to approximately 250 stations is envisioned by year-end 2002.

Strong Technology and Infrastructure Partners Join Forces
Evercel will supply batteries for the vehicles developed by Oxygen as well as supplying technical expertise for the handling, maintenance and charging of batteries. Evercel's nickel-zinc batteries will be able to provide substantial performance advantages over the standard lead-acid batteries in life-time, in recharge time, in efficiency and in economy.

"We believe that our battery can finally give an electric vehicle the life and performance that customers demand, said Robert L. Kanode, president and CEO of Evercel. "That makes owning an Oxygen brand scooter the smartest buy for the European consumer."

Eurosolare, a leader in photovoltaic power generation, will provide the infrastructure support for the charging stations and the main power components, solar and grid supply in locations selected by consensus with Oxygen. Agip Petroleum gas stations, another division of Eni Group are potential sites for growth in locations for the future. Agip controls 43 percent of the gas station in the Italian territory and it has presence in all other European countries.

Eurosolare's solar power recharge system will make this form of transportation the cleanest means available today.

Eni expressed satisfaction for this agreement, which is in line with the company's strong emphasis on environmentally positive action.

Oxygen, a leader in Europe in two-wheeled electric vehicles will assist in the design of the charging systems and in the marketing and commercial aspects of the enterprise. Oxygen's electric vehicles span the range from maxi-scooters with highway speed capability, through normal scooters and bicycles for inter-city transportation, down to small electric foot scooters for fun and local travel. Oxygen expects to dramatically expand European EV by adopting innovative and high performances battery technologies in its attractively designed products and by creating the recharging infrastructures through these and other arrangements.

Giampiero Duglio, C.E.O. of Oxygen, commented: "This agreement finally pulls together a team with the expertise and resources to make owning and using an electric vehicle in Italy not only a possibility, but a rewarding and enjoyable experience. No more noise; no more pollution and no more concerns about range and availability."