Evercel Issues Letter to Shareholders HINGHAM, Mass., April 21 /PRNewswire-FirstCall/ -- Evercel, Inc. (EVRC.PK), today released the following letter to shareholders from Chairman James Gerson and CEO Garry Prime: Dear Fellow Shareholders, 2003 has been a disappointing year. Our sales of nickel-zinc batteries have been quite limited and we have incurred substantial losses. As a result we have taken several steps to attempt to both preserve our assets and embrace opportunities for future corporate value. The steps included a drastic reduction in expenses, investment in an unrelated business, continued efforts to exploit our nickel-zinc technology and exploration of other business opportunities. 1. Expense reductions: We have reduced our payroll to one part-time engineer and our rent expenses to nil. Virtually all our efforts are being conducted by our officers and Chairman on a part-time, uncompensated basis. In the U. S. we have moved to much smaller space which we share with another company. In China our fixed overhead has been substantially reduced and we run our production line only when there is appropriate demand. Furthermore, we have withdrawn our public registration of securities. Our securities are now traded through the "Pink Sheets" and we no longer have the compliance and filing expenses of an SEC publicly registered company. Nevertheless, we plan to continue to obtain audited financial statements. 2. Investment in unrelated businesses: As previously reported we invested $2.0 million in series C preferred shares of Zipcar, Inc., an innovative and very rapidly growing, hourly car rental company. Zipcar has operations in Boston, New York and Washington D.C. It is one of the largest companies of its kind in the U.S., has significant proprietary technology and is advancing a business model which is already proven to be very successful in Europe. Zipcar's website is http://www.zipcar.com/. 3. Continued efforts to exploit our nickel-zinc technology: Our technology has proven itself to be a successful solution for several electric vehicle manufacturers. Clearly, it has been very challenging to get customers to design products using our technology given our size and financial condition. Our largest customer, Oxygen SpA, remains committed to our products and is projecting substantial orders over the next several months. We intend to supply batteries for these orders if economically appropriate. Our lease in Xiamen expires in October, we have been able to negotiate a Letter of Intent (LOI) with a very successful private building products manufacturer which is supported by the local government and which may enable us to continue manufacturing should we receive appropriate order flow. In general, the LOI provides that our JV partner will provide $4.4 million for 44% of the new company and we will provide $600,000, exclusive and non- exclusive licensing in certain Far East countries and our know-how for 56% of the new company. 4. Exploration of other business opportunities: We are continuing our dialogue with other battery manufacturers with a view to possible combination of our efforts. In addition we are entertaining other proposals from non-battery manufacturers. All of these discussions are very preliminary at this point. Since our liquid financial condition is very limited our expectation is that with a qualified opportunity we will raise additional financing if required. We expect to have our audited financial results by the end of May and we will then make them available to our shareholders. Needless to say it is not pleasant to report our current lack of success. We can assure you, however, that we had and continue to have a very dedicated, creative and loyal group of employees. On behalf of all our shareholders we would like to thank them for their efforts. In addition we assure you that we intend to remain dedicated to the preservation and enhancing of Evercel and its technology. James Gerson., Chairman Garry Prime, CEO & President April 21, 2004 DATASOURCE: Evercel, Inc. CONTACT: Investor - Anthony Kiernan of Evercel, +1-781-741-8800; or Media - Bill Baker of Baker Communications Group, LLC, +1-860-350-9100, for Evercel

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