U.S. ELECTRICAR AND HYUNDAI MOTOR COMPANY
PARTNER ON HYBRID VEHICLE DEVELOPMENT

TORRANCE, CALIFORNIA. October 26, 1999 - U.S. Electricar, Inc. (Symbol: ECAR) announces that they have developed, under contract with Hyundai Motor Company of Korea, a parallel Hybrid system for their vehicle applications.

This parallel hybrid system was created in partnership with Hyundai for their Concept Car displayed recently at the Seoul Auto Show. The system has been successfully integrated and has demonstrated all performance requirements.

The Hyundai parallel hybrid drive system consists of both an electric motor and internal combustion engine. The electric motor, battery and controller are utilized during acceleration, deceleration and high torque demands with the internal combustion engine operating during highway and cruise driving when the engine is most efficient.

U.S. Electricar has been competitively chosen by Hyundai Motor Company to develop a family of electric and hybrid-electric drive systems. U.S. Electricar’s 60kW, 90kW, and 120kW electric drive systems are ready for production and are to be the power systems in the Hyundai line of electric vehicles.

Carl D. Perry, President and CEO of U.S. Electricar, said, "Our partnership with an OEM such as Hyundai Motor Company, as well as Hyundai Heavy Industries and Hyundai Electronics, enables our Company to produce electric vehicle systems which comply with all automotive standards. Not only will these system be installed in production vehicles for Hyundai in Korea, the Company will also utilize these systems in other markets around the world."

This contract expands the existing exclusive relationship Hyundai has with U.S. Electricar for the development and production of electric and hybrid vehicle drive systems and components.

Independently, U.S. Electricar has also developed a series hybrid drive system for medium and heavy-duty delivery and transit vehicle applications.

The series hybrid drive system also utilizes both an electric motor and an engine. However, in this configuration, the engine operates at preset optimum levels to extend the range of the vehicle with the electric motor providing all the propulsion power. Both the parallel and series hybrid drive systems have distinct and unique advantages for their applications. U.S. Electricar has developed both systems to maximize the benefits of fuel economy, low emission, and reduced maintenance for passenger and transit vehicles provided by each system.

CONTACT:

Carl D. Perry
President & CEO
U.S. Electricar, Inc.
(310) 527-2800
usecar@pacbell.net
www.uselectricar.com