[July 30, 2007]

Lithium Technology Corporation's Chief Executive Officer Issues Letter to Stockholders

Dear Shareholders,
It is my pleasure to address you all as the recently appointed Chief
Executive Officer of LTC. I am very excited about the opportunity that
was given to me to lead LTC forward in a world that is realizing the
value and the need for our technology and products.
LTC's three target markets, Transportation, Defense and
Stationary/Alternative Energy, constantly require more available
energy and power - a demand that today's prevailing battery
technologies cannot adequately satisfy. We are among the few
visionaries who identified these future needs. We have developed the
technology that can answer the needs of today to enable innovative
solutions, like the plug-in hybrid vehicles. We are making strides
in all three markets with repeat orders from existing customers and
the acquisition of new customers, most of which belong to the leaders
in their respective industries.
The strength of our company lies with our employees and core
technology. Unlike many companies that simply assemble batteries with
cells imported from Asia, we, at LTC, master the entire process - from
the manufacturing of battery cells to the pairing with intelligent
management systems. This end-to-end manufacturing ability allows us
to offer superior products at the highest level of quality assurance.
Additionally, our broad experience in battery technology and industry
savvy helps us develop solutions quickly. For example, our new
Lithium-ion iron phosphate battery cells are the largest commercial
cells of its kind in the world. This significant accomplishment is
evidence to the automotive manufacturers that the battery technology
they need is here today.
Today we are working hard to substantially increase our production
capacity in order to satisfy the growing demand for our products.
We recently opened an office in The Netherlands, in which we will
concentrate our efforts on our goals to build a new production
facility that will allow us to manufacture our products in much
larger quantities and in a more efficient way. This will allow us
to gain bigger market share. We continue to invest heavily in R&D,
sales and global marketing efforts.
As reported to the SEC on July 12th we paid back our biggest debt and
entered into a much smaller fixed convertible loan at today's market
price. This, together with the repayment to Cornell Capital Partners,
LP, reduced our debt significantly and is a major step in the
restructuring of our balance sheet. Management is working hard to
further improve the financial condition of the company and to create
a strong LTC.
We continue to work with our auditors for the completion of all
financial reports in order to become current on our public filings.
It is a top priority for me and the rest of the management team and
we dedicate every possible resource to conclude it as soon as
possible.
Finally, I believe the world has come to the conclusion that a change
is needed in the way we operate in our daily lives in order to save
our environment, and a major part of this change will require better
and bigger batteries. Toyota announced last week it is testing a
plug-in version of the Prius They join GM and Ford, who also announced
their intention to develop commercial plug-in hybrid vehicles. Toyota
went one step further to state that by 2020 all their vehicle
offerings will be either plug-in hybrids or regular hybrids. This is
very important statement for us as we see a world leading company who
sells millions of vehicles a year plans such a drastic move in about
12 years time. We believe western world car companies will follow suit
and we are here today to provide our superior products.
It is my intention to steer the company in a way that will build
long-term sustainable value, especially in our core areas of
competitive advantage where the future value of our company will come
from. It is my belief that this approach will help building large,
strong and profitable company and will maximize the value to our
shareholders.
Sincerely,
Dr. Klaus Brandt
Chief Executive Officer
Lithium Technology Corporation

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