Advanced Battery Technologies, Inc., a leading developer, manufacturer and distributor of rechargeable Polymer Lithium-Ion (PLI) batteries, has entered into a Letter of Intent to acquire 55% of Wuxi Angell Autocycle Co. Ltd.

Under the arrangement, Advanced Battery Technologies will issue 2 million shares of common stock and pay RMB25 million (approximately $3.64 million) in cash.

However, completion of the acquisition is subject to execution of a definitive agreement, as well as satisfactory results of due diligence and to delivery of audited financial statements by Wuxi Angell.

Wuxi Angell Autocycle Co., Ltd, founded in 2002, develops and manufactures various types of electric vehicles, with a production and sales volume over 300,000 vehicles. The company's products are exported to 47 countries in Europe, United States and Asia.

Advanced Battery Technologies anticipates that the acquisition will close in the first quarter of 2009.

The share of Advanced Battery settled the day at $ 2.29 on Nasdaq, down 5% compared to previous close of $2.41.