Energy Conversion Devices Awarded Contract by Department of Energy to Convert Small Gasoline Internal Combustion Engines to Run on Hydrogen

ROCHESTER HILLS, Mich., Nov. 7, 2006 -- Energy Conversion Devices, Inc. (ECD Ovonics) announced that it was recently awarded a cost-shared contract by the U.S. Department of Energy (DOE) to continue its work on small hydrogen internal combustion engines. The estimated total cost of the project is approximately $1.7 million, with DOE providing $1.2 million toward the project.

Under the contract, ECD Ovonics will develop a low-cost method to convert small gasoline internal combustion engines (under 25 hp) to run on hydrogen fuel, while maintaining the performance and durability of the unmodified engines.

"This is a great opportunity for us to advance the work done to date on hydrogen-ICE fueled scooters and three-wheeled taxis, both of which use our proprietary solid-state metal hydride storage systems on-board. We appreciate the DOE's support and look forward to our collaboration," Stanford R. Ovshinsky, President and Chief Scientist and Technologist of ECD Ovonics said.

The Ovonic three-wheeled taxi developed under a cost-shared project with the USAID has been demonstrated in the U.S. and in India. There is a significant potential market for reliable, low-cost engines with near zero emissions in stationary and mobile applications which include two- and three- wheeled vehicles, lawn and garden care equipment, and small back-up generator sets.

About ECD Ovonics:

ECD Ovonics is the leader in the synthesis of new materials and the development of advanced production technology and innovative products. It has invented, pioneered and developed its proprietary, enabling technologies in the fields of energy and information leading to new products and production processes based on amorphous, disordered and related materials. The Company's portfolio of alternative energy solutions includes Ovonic thin-film amorphous solar cells, modules, panels and systems for generating solar electric power; Ovonic NiMH batteries; Ovonic hydride storage materials capable of storing hydrogen in the solid state for use as a feedstock for fuel cells or internal combustion engines or as an enhancement or replacement for any type of hydrocarbon fuel; and Ovonic fuel cell technology. ECD Ovonics' proprietary advanced information technologies include Ovonic phase-change electrical memory, Ovonic phase-change optical memory and the Ovonic Threshold Switch. ECD Ovonics designs and builds manufacturing machinery that incorporates its proprietary production processes, maintains ongoing research and development programs to continually improve its products and develops new applications for its technologies. ECD Ovonics holds the basic patents in its fields. More information on the company is available on http://www.ovonic.com/ .