As part of the ongoing effort to be independent of petroleum resources and to be free from pollutant emission issues, various electric vehicles have been developed and tested through their integration with real world systems. In the current paper, yet another application specific EV for public transportation, an electric bus, is introduced and explained with results from the pilot test program which was carried out under real traffic conditions. The main feature of the current system is a battery exchanging mechanism mounted on the roof of the bus. The current configuration certainly requires an externally fabricated battery exchanging robot system that would complement the electric bus for a fully automated battery exchanging process. The major advantage of the current system is the quick re-charging of the electric energy through the physical battery exchange and the possible utilization of the battery exchange station as a mini scale energy storage system for grid system peak power shaving. With the total system solution approach for the public transportation system, it is fully expected to create outstanding business opportunities in number of areas such as battery suppliers, battery exchanging station management, battery leasing and many more.