While everyone is asking "Who Killed the Electric Car?" Lithium Technology Corporation (LTC), a global provider of large lithium-ion rechargeable power solutions, is advancing the technology needed to bring the vehicle back to life.

LONDON, Dec. 5, 2006 -Lithium Technology Corporation ("LTC") (OTC: LTHU), a global provider of large lithium-ion rechargeable power solutions, announced that its battery system was integrated into a four-door demonstration hybrid electric vehicle (HEV) launched today in London. The battery system is the result of collaboration with Zytek, one of the world's leading suppliers of expertise in automotive control systems, powertrain management and HEVs.

LTC subsidiary GAIA Akkumulatorenwerke (GAIA) developed the battery for the vehicle based on the smart forfour (manufactured by DaimlerChrysler), which has an output of 288 V, a capacity of 7.5 Ah (or about 2.2 kWh of energy) and a capability to deliver 25 kW of power. The battery can be charged by either the internal combustion engine (ICE) and by regenerative braking or by household mains (plug-in hybrid). The vehicle has a fuel economy of over 84 mpg and an all-electric range of 20 miles which compares very favorably to the range of HEVs currently on the market.

"This project demonstrates an important step forward in the commercialization of LTC's products and technology in the HEV marketplace," commented Dr. Klaus Brandt, executive vice president of LTC and managing director of GAIA. "We are commited to continuously advancing automotive battery solutions to foster the evolution of the HEV. Lithium-ion batteries are the technology of choice for hybrid and electrical vehicles offering improved performance and cost advantages over conventional technologies, and LTC has proven capability to meet the advanced automotive needs of today and for the future."
Zytek was awarded £1.8 million by the Energy Saving Trust to develop the new HEV. The vehicle utilizes a hybrid power train based on a 1500cc, 3-cylinder turbo charged diesel engine coupled with two high-efficiency permanent-magnet electric motors. This car is part of the "Ultra Low Carbon Car Challenge" project that is supported by the Energy Saving Trust.

The vehicle has combined technology developed by LTC, Zytek and I+ME, for an advanced Battery Management System (BMS). The system is equipped with additional safety features to control the charging of the battery from the mains. The BMS has been designed to communicate with the vehicles' energy management system to ensure enhanced efficiency and control.

"The combination of LTC's advanced battery system and Zytek's innovative hybrid drive train, demonstrates a positive step forward in plug in hybrid technology that is simply applied to any OEM platform, as the system is scaleable and transportable," commented Steve Tremble the Zytek's sales and marketing director.
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About Lithium Technology Corporation: Lithium Technology Corporation (LTC) is a global provider of large format rechargeable power solutions for diverse applications, and offers the largest lithium-ion cells with the highest power of any standard commercial lithium ion cell produced in the western hemisphere. With more than 30 years of experience, LTC leverages its extensive expertise in high power and large battery assemblies to commercialize advanced lithium batteries as a new power source in the military and national security systems, transportation and stationary power markets.

LTC manufactures the GAIA® product line of large, high power hermetically sealed rechargeable lithium-ion cells and batteries. The Company's product portfolio includes large cells and batteries from 10 times the capacity of a standard laptop computer battery to 100,000 times greater. LTC manufactures a variety of standard cells that are assembled into custom large batteries complete with electronics (battery management systems) and electronics to communicate with other components of the system for performance monitoring.

LTC headquarters are located in Plymouth Meeting, PA and R&D in Nordhausen, Germany. LTC sales for the U.S. and European markets are managed out of each of the offices. For more information about LTC, its technology and products, please visit http://www.lithiumtech.com .

About Zytek Systems: Zytek is at the forefront of automotive technology, being active in the fields of electronic control systems, high performance engines, concept electric and hybrid vehicles and electro/mechanical services.
Projects range from the development of systems for show cars and engineering prototypes, to design and validation of critical sections of production programs. The Zytek group also has the capability to manufacture control systems and electric drivetrains in low volumes, simplifying customers' development and field trial times with reliable hardware and software.

In motorsport, Zytek designs and manufactures engines, engine management systems and chassis, including bespoke commissions for individual clients. Substantial design and development capability is supported with resources to manufacture in sufficient volume for a major global race series. Installation and wiring expertise ensures fast, efficient integration with systems from other suppliers. Zytek's race heritage has bred a culture that delivers exceptional results for customers - race and road alike. Further information about Zytek is available at http://www.zytekgroup.co.uk.

About the Energy Saving Trust: The Energy Saving Trust was set up by the UK Government after the 1992 Earth Summit in Rio de Janeiro and is one of the UK's leading organizations addressing the damaging affects of climate change. It aims to cut carbon dioxide emissions by promoting the sustainable and efficient use of energy. The Energy Saving Trust is a non-profit organization funded by government and the private sector.

The Energy Saving Trust's transport unit is working on behalf of governments to improve the quality of our environment. Funded mainly by the Department for Transport, the Scottish Executive and the Welsh Assembly Government, it works in partnership with the transport industry, corporate fleet sector and the public sector to help make the UK a cleaner and healthier place to live and work. For more information please visit http://www.est.org.uk/fleet.

Safe Harbor for Forward-looking Statements:
The foregoing information contains forward-looking statements, which involve risks and uncertainties relating to such matters as financial performance, technology development, capital raising, business prospects, strategic partnering and similar matters. A variety of factors could cause LTC's actual results and experience to differ materially from anticipated results or other expectations expressed in these forward-looking statements. This notice does not constitute an offer of any securities for sale.