Greetings Friends of ECOtality,

We wanted to update you on what has been happening here at ECOtality. We have been very busy over the past few months with the development of HydratusTM, the acquisition of Fuel Cell Store (www.fuelcellstore.com), a partnership with Arizona State University for the recycling of magnesium, and conducting a company update call with our investors.

NASA’s Jet Propulsion Laboratories’ Task Plan, GreenMountain Engineering, and Airboss Aerospace continue to work on developing our Hydratus prototype which is scheduled to be unveiled in the first half of 2008. Test reactors are underway to complete the reaction modeling for the full scale vehicle reactor. Ancillary systems for fueling and integration are being designed, and tested. All the reports from our science team have been extremely positive about the technology as we continue to hear great news from the labs and develop more buzz in the hydrogen and fuel cell industries. Discussions are ongoing with DOE, and various OEMs for commercialization.

On June 14th, ECOtality announced the acquisition of Fuel Cell Store (www.fuelcellstore.com), a leading online retailer for the fuel cell industry. With the acquisition, ECOtality further expands its operations into fuel cell technologies and establishes direct relationships with top international research institutes, universities, and leading manufacturers in the hydrogen and fuel cell industries. Fuel Cell Store’s broad product range, competitive pricing, and international distribution infrastructure solidifies our position as a key player in the global development and commercialization of hydrogen and fuel cell technologies. The site also represents an established vehicle for distributing other ECOtality products. Please visit Fuel Cell Store in the next few weeks as we will be making exciting changes and updates to the site.

On July 17th, we announced a partnership with Arizona State University (ASU) to further develop regeneration solutions for magnesium oxide - the main byproduct of Hydratus. Beginning June 1, 2007 until mid 2008, ASU will evaluate potential technologies to determine cost and energy efficiencies for converting magnesium oxide back to its original form – magnesium – where it will serve as a true carrier of energy for on-demand hydrogen generation. Dr. Jerry Y.S. Lin, Chairman of the Technology Committee for ECOtality and Professor and Interim Department Chair of Chemical Engineering at ASU, will oversee the daily activities of the project.

Finally, on July 24th, we had a public conference call that featured Jonathan Read, president and CEO of ECOtality, and Colonel Barry Baer, chief financial officer of ECOtality. The purpose of the call was to update shareholders about recent developments, including technology breakthroughs, as well as recent acquisitions and partnerships. If you were not able to join the call live, a full transcript can be found here, or you can listen to a replay at www.ecotality.com.

ECOtality is continuing to foster discussion about the most burning issues being discussed in the blogosphere today via the ECOtality Blog, which has earned status as a leading voice of information and intelligent debate in the fields of alternative energy and environmentalism. Original items that appear on the ECOtality Blog are re-published in all corners of the globe, with topics that include advances in clean energy technology, politics, the business of alternative fuels, human interest stories, market analysis, and of course... hockey. At the most recent Live Earth concert series, the ECOtality Blog provided comprehensive coverage of the event and welcomed a lot of new members to our online community. We are really proud of our blog and hope you enjoy it too!

We thank you for your support and hope you continue to think green!

Thank you,

ECOtality

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