Axion Power Receives Initial Norfolk Southern Order for PbCR Batteries

To date, this is the largest single PbC battery order that Axion has received

NEW CASTLE, Pa., April 26, 2012 -- Axion Power International

Inc (OTC Bulletin Board: AXPW), the developer
of advanced lead--carbon PbCR batteries and energy storage systems, today
announced that it has received an order from Norfolk Southern Corp (NS) for
PbC batteries for use in a battery-powered locomotive. Axion Power said this
first $400,000 purchase order is part of a $475,000 total purchase order,
that will be used in the commissioning of Norfolk Southern's NS-999. The
total purchase order will be shipped and deployed in the next 90 - 120 days.
To date, this is the largest single PbC battery order that Axion has
received. No further details were disclosed.

Axion Power Chairman & CEO Thomas Granville commented, "We have been working
with Norfolk Southern for two and a half years, and we are very pleased that
this first hybrid 'switcher' yard locomotive, to be run completely on PbC
batteries, will soon be in service. We have been moving on a parallel
development path with respect to supplying batteries for the first NS 'over
the road' locomotive. This larger, more powerful, unit will require
approximately twice the number of batteries as those to be shipped for the
yard 'switcher' locomotive. High-performance PbC batteries are ideally
suited for hybrid locomotive applications due to their high charge
acceptance, fast charge and discharge capabilities (important in
regenerative braking), and their inherent ability to equalize voltage when
utilized in large string configurations."

Granville continued, "Of course PbC batteries are also very stable and safe
because of the close construct similarities they share with lead-acid
batteries - a chemistry that has been safely deployed for more than a
century. Unlike some of the batteries being used in various vehicular
applications, PbC batteries operate safely at all temperatures; are 100%
recyclable; and are priced substantially below the cost of some of the more
highly publicized exotic battery chemistries. We feel these attributes are
becoming more fully appreciated by our customer base in general, and by NS
in particular. As for a strategic partner, you couldn't ask for one better
than NS. We anticipate a long and mutually beneficial partnership as they
move forward with their hybrid locomotive strategy."

A yard switcher locomotive, or 'switcher', is used in a train yard to
assemble and disassemble long trip over-the-road trains. Additionally it is
used for the general movement of railroad cars around the rail yard.

About Axion Power International Inc

Axion has developed and patented a next generation energy storage device
that won the prestigious Frost & Sullivan Technology Award for North America
in the field of lead-acid batteries. According to Frost & Sullivan, Axion's
new PbCR batteries have "the potential to revitalize the lead-acid battery
industry by breathing new life into an established technology that is not
well suited to the requirements of important new applications like hybrid
electric vehicles and renewable power."

Axion Power International, Inc. is the industry leader in the field of
lead-acid-carbon energy storage technologies. Axion believes this new
battery technology is the only class of advanced battery that can be
assembled on existing lead-acid battery production lines throughout the
world utilizing Axion's proprietary carbon electrodes. Axion's future goal,
after filling their plant's lead-carbon battery production capacity, is to
become the leading supplier of carbon electrode assemblies for the global
lead-acid battery industry.

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