ECOtality Announces Revenue of $2.9 Million for Second Quarter 2008
Scottsdale, Arizona, United States August 14, 2008

• Total expenses reduced by 35% from Q1
• Gross Profit reaches $2.5M for 2008
• All subsidiaries report positive operating income in Q2
• Current liabilities decreased 20% from Q1

ECOtality, Inc. (OTCBB: ETLY), a leader in clean electric transportation and storage technologies, today announced revenue for the second quarter ended June 30, 2008 of $2.9 million. This represents ECOtality’s highest single quarter of revenue to date. Total expenses for the second quarter ending June 30, 2008 were $1.7 million, a 35% reduction when compared to total expenses of $2.6 million for the first quarter ending March 31, 2008. ECOtality’s subsidiaries, which include Electric Transportation Engineering Corporation (eTec), Innergy Power Corporation, and Fuel Cell Store, all reported positive operating income for the second quarter. “We are pleased with our financial results for the second quarter and believe that we are well positioned for continued financial growth through current operations and expansion in emerging markets,” said Jonathan Read, president and CEO, ECOtality. “During the second quarter, the Company increased top line revenue to a new all-time high, while significantly reducing operating expenses by 35%. As all subsidiaries had positive earnings this quarter, our results validate the successful integration of past acquisitions and our transition into a revenue generating company with strong product lines, solid cost controls, and significant potential for financial growth in new and existing markets.”

2008 KEY OPERATIONAL HIGHLIGHTS

eTec launched the Plug-in Hybrid Electric Vehicle (PHEV) Grid Interaction Project. Working with V2Green and the U.S. Department of Energy (DoE), the project will demonstrate eTec’s ability to fast-charge a PHEV in 10 minutes and to analyze the effects of using the energy storage capabilities of PHEVs to provide energy back to smart-metered electric grid systems. eTec launched the new Minit-Charger SC line of fast-charge systems for material handling equipment applications. Minit Charger SC is a lighter, compact and more cost-effective fast-charging system that can recharge battery systems four times faster than conventional chargers and has a variety of applications in other industries, including on-road electric vehicles.

eTec launched the Bridge Power Manager (BPM) for electric ground support equipment (eGSE). The BPM significantly reduces infrastructure transition and conversion costs by allowing eTec Minit-Charger fast-charge systems to share and distribute power with existing power supply circuits at airport terminals.

eTec announced it was performing ongoing baseline and fleet testing for the DoE’s Advanced Vehicle Testing Activity (AVTA). During the course of the project, which is part of a five-year contract with the DoE that started in October 2005 and is valued at $10.5 million, eTec will conduct baseline and fleet testing on several hybrid, plug-in hybrid and electric vehicles.

Innergy Power announced plans to develop and manufacture battery systems for electric vehicle (EV) applications. Innergy Power plans to develop and manufacture batteries with Advanced Charge Management (ACM) technology that optimizes battery performance for fast-charging with eTec Minit-Charger systems and provides real-time battery condition information to users.

2008 2nd QUARTER & 6 MONTH RESULTS

In line with the successful transition from a development stage to a revenue-generating company, revenue for the second quarter ended June 30, 2008 was $2.9 million, compared to $35,464 for the quarter ended June 30, 2007. Gross profit for the second quarter 2008 was $1.3 million compared to $15,138 in the previous year. Operating loss for the quarter ended June 30, 2008 was $427,430, a 67% improvement over the operating loss of $1.3 million for the same period in 2007.

Financial results for the second quarter ended June 30, 2008 when compared to the first quarter ended March 31, 2008 show an overall increase in revenue and gross profit and a significant decrease in total expenses and current liabilities. Revenue for the second quarter was $2.9 million versus $2.8 million in the prior quarter, while gross profit grew 6% to $1.3 million from $1.2 million. Total expenses for the second quarter ended June 30, 2008 were $1.7 million, a 35% reduction when compared to total expenses of $2.6 million for the first quarter ended March 31, 2008. Of total expenses, general and administrative expenses declined 35% to $1.5 million in the second quarter from $2.4 million in the first quarter. Total current liabilities also decreased 20% to $6.0 million in the second quarter from $7.6 million in the first quarter. Of this decrease in current liabilities, $1.5 million is attributable to the reevaluation of purchase price obligations as we near anniversary acquisition dates.

For the six months ended June 30, 2008, revenue rose to $5.8 million, compared to $35,464 during the same period in the prior fiscal year. The Company reported gross profit of $2.5 million for the first six months of 2008, compared to $15,138 during the same period in 2007. Net loss for the six month period ended June 30, 2008 was $2.9 million, or $(.02) per diluted share, compared with a net loss of $5.9 million, or $(.05) per diluted share, for the first six months of 2007.

“Given the current condition of the domestic economy and global markets, we are pleased to have increased our revenues and maintained bottom line growth while substantially decreasing our overall expenses and liabilities,” continued Mr. Read. “With a lagging economy, high gas prices and the negative effects on our potential consumers in the automotive, airline and corporate markets, we expect overall revenue of over $13 million for the year. Despite our revised guidance, management believes that our subsidiaries will achieve positive operating results for the year through our implemented organic growth strategy and strong expansion opportunities in new markets, including that of on-road electric vehicles.”

SHAREHOLDER CONFERENCE CALL

Management will host a conference call with the investment community on August 19, 2008 at 4:15 p.m. Eastern time. Interested parties may participate in the conference call by dialing 1-800-762-8779 or 1-480-629-9041 for international callers. Please call 5 to 10 minutes prior to 4:15 p.m. When prompted, ask for the “ECOtality Second Quarter Earnings Conference Call.” A telephonic replay may be accessed approximately two hours after the call through August 26, 2008, by dialing 1-800-406-7325 or 1-303-590-3030 for international callers and entering the replay access code 3911235. The teleconference will be webcast simultaneously on the ECOtality website at www.ecotality.com/investors.

ECOtality, Inc. (OTCBB: ETLY), headquartered in Scottsdale, Ariz., is a leader in clean electric transportation and storage technologies. Through innovation, acquisitions and strategic partnerships, ECOtality accelerates the market applicability of advanced electric technologies to replace carbon-based fuels.

Forward-Looking Statements: This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All forward-looking statements are inherently uncertain as they are based on current expectations and assumptions concerning future events or future performance of the company. Readers are cautioned not to place undue reliance on these forward-looking statements, which are only predictions and speak only as of the date hereof. In evaluating such statements, prospective investors should review carefully various risks and uncertainties identified in this release and matters set in the company’s SEC filings. These risks and uncertainties could cause the Company’s actual results to differ materially from those indicated in the forward-looking statements.

Source: ECOtality