Ecologic Transportation, Inc., (OTC:QB--EGCT) announced today it has signed two investment banking agreements with a leading New York-based investment banking firm to assist in sourcing capital. The investment banking firm was founded in 1925, is one of the oldest in the United States, a member of the New York Stock Exchange and a full-service broker-dealer employing over 500 people. The firm manages two Morningstar- rated funds with over $2.8 Billion of retail accounts, nearly 100 registered representatives and 20 investment advisors in six offices.

Under the first agreement, the Company has retained the investment banking firm as its exclusive placement agent and financial advisor in connection with acquisition financing of up to $20,000,000 in debt. The Company must meet various terms and conditions, which it believes are reasonable and attainable.

The second agreement anticipates a public offering of $30,000,000 on a firm commitment basis.  The planned public offering is subject to the Company's successful acquisition of ACE Rent A Car, Inc., the Chicago, Illinois based car rental business.

The Company's CEO, William B. Nesbitt, said, "We are exceedingly pleased to establish this relationship with such a prestigious New York Stock Exchange member firm, which validates our business plan.  We expect the assistance of this well established investment banker will accelerate our growth.  We have launched an aggressive acquisition program, beginning due diligence on several acquisition targets.  Our management believes we can satisfy the conditions in both investment banking agreements."