EAGLEPICHER FORMS JOINT VENTURE TO LAUNCH BREAK-THROUGH LEAD ACID TECHNOLOGY

PHOENIX, AZ, February 27, 2003 - EaglePicher Industries, Inc., a diversified manufacturer and marketer of advanced technical and industrial products, has announced the formation of a joint venture with Horizon Batteries, Inc. (formerly Electrosource). The joint venture will develop, manufacture and distribute a breakthrough, high performance sealed lead-acid battery.

This new battery is based on a patented, woven-grid process technology that reduces internal impedance for greater efficiency, faster recharge and higher cold cranking power. The new battery will have the highest specific energy (>45 Wh/kg) of any lead-acid battery on the market today. It will be ideal for the emerging hybrid electric vehicle (HEV) and the industrial electric vehicle (IEV) markets in which high power, lightweight, long life and quick recharge time are critical.

The joint venture combines the unique technical capabilities of Horizon Batteries with the development and manufacturing capabilities of EaglePicher's Technologies business. Henry Burkhalter, President of Horizon Battery, said, "EaglePicher is a terrific partner to help us bring this exciting technology to market. Their experience in developing and manufacturing high performance batteries is a perfect fit for this breakthrough battery technology." Added Craig Kitchen, President of EaglePicher Technologies, LLC, "We are delighted to partner with Horizon. They have developed a unique and valuable battery design that has the potential to reshape the lead acid market and bring real value to these demanding applications."

Production of the Horizon battery is scheduled to begin this year. The product will be made in both China and the United States. To fully support Horizon, EaglePicher will significantly expand their global manufacturing, sales and marketing organization. According to John Weber, CEO of EaglePicher Industries, "This is an important step in validating our strategy of being the leading commercializer of new and advanced battery technology. Eagle Picher's reputation as a premier provider of high performance energy sources will be enhanced by this latest development. I am excited by this announcement, which is the first in a series of new initiatives from EaglePicher."