Symbol: ABAT

Advanced battery Tech, Inc.

Recent News

On April 27, 2006, ABAT announced its 2005 year-end financial figures.

Revenues for 2005 totaled $4,222,960, compared to $1,191,509 for 2004, an increase of $3,031,451, or approximately 254%. General and administrative expense for 2005 totaled $1,199,846, or approximately 28% of revenue, compared to $2,786,900, or approximately 233% of revenue, for 2004. The company reported 2005 net loss of $157,637, or $0.007 per fully diluted share, down from net loss of $2,349,704, or $0.23 per fully diluted share, in 2004.

Mr. Zhiguo Fu, CEO and chairman of ABAT, said, "This was an important year for the development of our company. The strong increase in revenue was attributable to the successful expansion of our product lines to meet the needs of existing and new customers. This growth reflected the continued demand for our advanced PLI batteries, as well as expanded production capacity, which increased by more than 100%, resulting from the completion of an additional factory facility."

Mr. Fu also said, "We are optimistic about the year ahead. As previously reported, we have a backlog of approximately $6.25 million from approximately twelve customers. In addition, we keep getting new orders from existing and new customers, which will place us strongly into the global battery market."

New Products & New Customers

On May 1, 2006, ABAT announced that it had shipped its first batch of finished new Nano-Lithium-Ion (NLI) batteries to its U.S. customer.

ABAT has successfully developed and manufactured its new NLI batteries using Lithium Titanate Spinel Electrode Nanomaterials provided by Altair Nanotechnologies, Inc. ABAT has previously developed a method for incorporating the nanomaterials into its PLI battery for which ABAT filed a patent application in July 2005. "We are very pleased with the remarkable performance enhancement using ALTI's nanomaterials, and we're proud to start producing new NLI batteries from our manufactured production line," commented Mr. Zhiguo Fu, Chairman of ABAT.

On May 12, 2006, ABAT announced that it has started shipments of its PLI battery to HUBCELL Co., Ltd. of Korea according to a purchase agreement between ABAT and HUBCELL Co., Ltd.

HUBCELL Co., Ltd. is a South Korean import and export company, focusing on Lithium Polymer Battery, Battery Pack Unit, and Electric Components etc., with customers in the United Kingdom, the United States, France, Netherlands, Denmark, China, Saudi Arabia, Australia, and ten other foreign countries. HUBCELL Co., Ltd. is a member of Korea International Trade Association and Korea Batteries Association. Yoo-Chul Shin, CEO of HUBCELL Co., Ltd., stated, "We selected Advanced Battery Technologies for their ability to meet our high standards of quality and product specifications. We are confident that Advanced Battery Technologies can meet our accelerated delivery schedules as we increase the imports of the battery products."

"We're very pleased to start shipments for our PLI batteries to HUBCELL Co., Ltd. while we are making progresses on other new battery products," commented Mr. Zhiguo Fu, Chairman of ABAT.

Management

Zhiguo Fu

Chairman & Chief Executive Officer

Zhiguo Fu is the founder of Advanced Battery Technologies, Inc. Prior to founding ABAT, Mr. Fu served as Chairman of the Heilongjiang Guangxia Group, a large construction consortium that at the time of its sale in 2000 had revenues in excess of $25 million.

Mr. Fu is a graduate of the Harbin Naval Engineering Institute and holds a degree in business management and engineering. As a technician, he has worked for the Chemical Fertilizer Co. Factory in Acheng and Harbin Songhuajiang Car Maintenance Co. In management roles, he has been the factory head for Harbin Xinyang Construction Material Co, the vice-president of the Harbin Engineering and Technology Group, the vice-president of Harbin Chenyan Construction Co., and chairman of Heilongjiang Guangxia Group. Currently, he is the chairman of Advanced Battery Technologies, Inc., which owns 52% of Zhongqiang Co. He is the vice-president of the Shuangcheng City Chamber of Commerce, a representative to the People¡¯s Congress, a board member of the Shuangcheng City Consumer Association, a member of the Chinese Enterprise Cooperative Association, and a member of the Chinese Entrepreneur Association.

Wan Guohua

President

Ms.Guohua Wan has served as President of ABAT since August 2002. She has extensive experience in planning and production deriving from her tenure in management at the Harbin Zhengyang Timber Factory and the Harbin Carpentry Factory. She held positions as Party Secretary and Head of Strategic Planning at the Harbin Zhengyanghe Logging Mill Co.Ltd. Later, she was vice-president at the Harbin Woodworking Factory and of the Heilongjiang Weiyou Chemical Engineering Corporation, She is a member of the Political Committee in Shuangcheng City, is a published author, and is an honorary member of the National Statistics Board. She has extensive experience managing large groups of enterprises.

Conclusion

There a few important reasons why we like ABAT and have decided to recommend it.

Our main reason is a play on the alternative-fuels market. ABAT is continually working on batteries for the motorized vehicles market. This market is getting untold amounts of attention and ABAT should benefit from this attention. However, they are not locked into this market only. They are either working on, or produce batteries in many markets including mining, computers and communications. They are concentrating much of their efforts on the Chinese market.

ABAT utilizes an electrolyte that plasticizes the polymer in the battery which produces a solid or gel electrolyte that is safer and leak resistant. These high-energy batteries are superior to lead-acid batteries. They have a higher enerygy concentration and do not leak heavy metals into the soil when disposed of ... making them more environmentally friendly.

ABAT has a clean balance sheet, excellent prospects, new products in the pipeline and has been adding new customers all the time. The last quarter showed a slight pullback in revenue growth (quarter over quarter), but we believe this is temporary as that quarter's revenues were still immense over the year-ago quarter as the company was concentrating on building its facilities. The quarter and annual figures do not include $21 million in backlog orders as the delivery times were delayed. Current reportable backlog is approximately $3.7 million.

Prospects are excellent for this small company. If management can keep it on track, and new customers keep coming in, ABAT could catch the attention of a lot of investors in the future. We'd like to be there to ride that wave!