Lithium Technology Corporation Received $1,000,000 Payment for Development of New Lithium-Ion Solar Energy Battery System

Business Wire, June 5, 2006

PLYMOUTH MEETING, Pa. -- Lithium Technology Corporation ("LTC") (OTC:LTHU) announced today that its wholly owned subsidiary GAIA Akkumulatorrenwerke GmbH ("GAIA") in Germany has received a $1,000,000 order from Sunergy Investco for the development of lithium ion batteries for a solar energy storage system.

Sunergy is a Dutch company formed to be a major supplier of solar energy systems to the world. The shareholders of Sunergy are DELTA, a major power utility in The Netherlands, RABO Bank and ING Bank as well as Mr. Benno Wiersma, the initiator and founder of the company.

The specific requirements for lithium ion batteries in solar energy storage applications differ substantially from the application of large format lithium ion batteries in portable power, found in electrical and hybrid electrical vehicles, and stationary power produced today.

LTC won the contract based on its proven technology track record and extensive background in many lithium ion chemistries and battery constructions. The scope of the order is for the development and demonstration of cells that meet the critical requirements for solar energy storage. The initial payment of $1,000,000 is for the first phase of a joint development program over the next 24-36 months and will amount to a total of $5,000,000.

Solar energy offers great potential for electrification in developing countries where infrastructure costs are extremely high in remote areas. This battery application for solar source power requires operation in extreme temperature conditions, as well as be robust with minimum maintenance requirements.

About Lithium Technology Corporation

Lithium Technology Corporation is a manufacturer of large format rechargeable lithium-ion batteries and battery management solutions for military, automotive and industrial applications. 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(R) 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 produces high power cells designed for HEVs and military applications that can discharge hundreds of amps in times as short as a few minutes, and high capacity cells for applications such as back-up power and remote standby installations. Cells are manufactured in both cylindrical and flat form and employ proprietary extrusion, design and assembly technology. 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 DELTA N.V.

DELTA is the fourth largest utility company in the Netherlands and it is based in Middelburg. DELTA is a national player in the wholesale energy trading markets and a supplier to large commercial customers, and has strong presence in the industrial water market (through the Evides joint venture). DELTA has five core business segments and production capacity with diversified resources that vary from gas and coal to wind power, solar, nuclear and biomass.

DELTA has successfully implemented a multi-utility strategy in its service area as a vertically integrated energy company that offers gas, power, water, environmental services, radio and TV signals and cable Internet access. DELTA is developing a wide range of renewable energy products of which solar energy is a major one.

For more information please visit www.delta.nl

About Rabobank

Rabobank Group is a financial services leader providing institutional and retail banking and agricultural finance solutions in key markets around the world. From its century-old roots as a Dutch farmers' finance cooperative, Rabobank has grown into one of the 25 largest banks worldwide with over $600 billion in assets and operations in over 35 countries. Rabobank is the only privately-owned bank in the world with the highest possible credit ratings from both Standard & Poor's (AAA) and Moody's Investor Service (Aaa), and is ranked the world's third safest bank by Global Finance magazine.

In the Americas, Rabobank is a leading financier to all segments of the agriculture industry, providing wholesale banking services to food and agribusiness clients, and agricultural lending to farmers, ranchers, input suppliers, and manufacturers; and full retail and commercial banking services to businesses, communities, and real estate developers and investors throughout Southern and Central California.