BlueStar Update on Private Placement

Apr 27, 2001, 01:00 ET from BlueStar Battery Systems International Corp.

    RALEIGH, N.C., April 27 /PRNewswire/ -- BlueStar Battery Systems
 International Corp. (CDNX: BSG) ("BlueStar" or the "Company") announced today
 that due to very poor capital market conditions and a lack of underlying
 support and interest in companies with e-commerce initiatives it has been
 unsuccessful to date in its attempt to privately place a proposed maximum of
 up to 2.5 million units of BlueStar with respect to a private placement
 announcement previously made on January 30, 2001.  Due to these prevailing
 economic conditions, the Company has decided not to proceed with a private
 placement instead opting to concentrate its efforts toward other measures for
 raising capital.  If, however, the capital market conditions improve, the
 Company may reinitiate plans for a private placement but on a repriced basis,
 subject to regulatory approval.
     The Company has continued to try to raise capital through alternative
 means, including evaluating a potential sale of additional assets, and is
 currently working with certain parties to evaluate the Company's business
 operations in the United States.  The Company is in the process of selling
 and/or closing its remaining business operations in Canada and anticipates
 this process will be completed shortly.
     The Company's secured lender, Lumina Group, LLC notified the Company on
 April 20, that it is in default under a loan agreement entered into in
 February 2001 and has indicated that it is willing to not take any actions for
 the next two weeks while the Company attempts to restructure and obtain new
 capital.  Lumina Group, LLC is controlled by James A. Risher, Chairman and
 Chief Executive Officer of BlueStar.
     The Company also announced today that it has retained counsel to initiate
 liquidation proceedings of certain inactive subsidiaries in the United States
 and anticipates making filings in the near future.
     Al Schnaidt, President and Chief Operating Officer stated that, "We
 obviously are disappointed in the poor capital market which has directly
 affected our ability to complete the restructuring of BlueStar.  The
 management team has spent the last year comprehensively repositioning the
 Company and successfully emerged from CCAA in Canada during November.
 However, the lack of new capital has resulted in a significant downsizing of
 the Company.  If the remaining efforts are ultimately not successful, we face
 the unfortunate liquidation of the Company's remaining assets in order to
 satisfy our secured lender.  The Board of Directors understands and supports
 this strategy."  In a separate action the Board of Directors met Wednesday,
 April 25 and appointed a subcommittee of the board consisting only of
 independent outside directors to evaluate financing options for the future.
     BlueStar sells power and charging systems in North America.  The Company
 markets battery products and certain related components from several of the
 world's leading manufacturers.  BlueStar's common stock currently trades on
 the Canadian Venture Exchange under the symbol BSG.
 
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SOURCE BlueStar Battery Systems International Corp.
    RALEIGH, N.C., April 27 /PRNewswire/ -- BlueStar Battery Systems
 International Corp. (CDNX: BSG) ("BlueStar" or the "Company") announced today
 that due to very poor capital market conditions and a lack of underlying
 support and interest in companies with e-commerce initiatives it has been
 unsuccessful to date in its attempt to privately place a proposed maximum of
 up to 2.5 million units of BlueStar with respect to a private placement
 announcement previously made on January 30, 2001.  Due to these prevailing
 economic conditions, the Company has decided not to proceed with a private
 placement instead opting to concentrate its efforts toward other measures for
 raising capital.  If, however, the capital market conditions improve, the
 Company may reinitiate plans for a private placement but on a repriced basis,
 subject to regulatory approval.
     The Company has continued to try to raise capital through alternative
 means, including evaluating a potential sale of additional assets, and is
 currently working with certain parties to evaluate the Company's business
 operations in the United States.  The Company is in the process of selling
 and/or closing its remaining business operations in Canada and anticipates
 this process will be completed shortly.
     The Company's secured lender, Lumina Group, LLC notified the Company on
 April 20, that it is in default under a loan agreement entered into in
 February 2001 and has indicated that it is willing to not take any actions for
 the next two weeks while the Company attempts to restructure and obtain new
 capital.  Lumina Group, LLC is controlled by James A. Risher, Chairman and
 Chief Executive Officer of BlueStar.
     The Company also announced today that it has retained counsel to initiate
 liquidation proceedings of certain inactive subsidiaries in the United States
 and anticipates making filings in the near future.
     Al Schnaidt, President and Chief Operating Officer stated that, "We
 obviously are disappointed in the poor capital market which has directly
 affected our ability to complete the restructuring of BlueStar.  The
 management team has spent the last year comprehensively repositioning the
 Company and successfully emerged from CCAA in Canada during November.
 However, the lack of new capital has resulted in a significant downsizing of
 the Company.  If the remaining efforts are ultimately not successful, we face
 the unfortunate liquidation of the Company's remaining assets in order to
 satisfy our secured lender.  The Board of Directors understands and supports
 this strategy."  In a separate action the Board of Directors met Wednesday,
 April 25 and appointed a subcommittee of the board consisting only of
 independent outside directors to evaluate financing options for the future.
     BlueStar sells power and charging systems in North America.  The Company
 markets battery products and certain related components from several of the
 world's leading manufacturers.  BlueStar's common stock currently trades on
 the Canadian Venture Exchange under the symbol BSG.
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X13083774
 
 SOURCE  BlueStar Battery Systems International Corp.