Maxwell Technologies and ISE Corporation Agree to Form Strategic Alliance to Develop and Market Ultracapacitor-Based Energy Storage Solutions for Hybrid Buses and Trucks

High-Voltage Modules Address Global Market for Greener, More Energy-Efficient Vehicles

SAN DIEGO, June 17 -- Maxwell Technologies, a leading manufacturer of energy storage products, and ISE Corporation (ISE) a leading designer and manufacturer of hybrid propulsion systems and components for heavy duty vehicles, have signed a Memorandum of Understanding (MOU) outlining formation of a strategic alliance to develop and market high-voltage energy storage systems for fuel-efficient, low-emission, hybrid buses and trucks.

  Principal elements of the proposed strategic alliance include:

  --  Agreement to share the companies' technical resources to develop
      robust, high-performance, energy storage solutions for the heavy
      transportation market;
  --  ISE's agreement to source ultracapacitor cells exclusively from
      Maxwell, and
  --  Maxwell's agreement to source and market through its sales and
      distribution channels certain high-voltage and high performance
      ultracapacitor modules designed and produced by ISE.

The agreement builds on a relationship that began in 2002, when Maxwell began supplying BOOSTCAP(R) ultracapacitors to ISE for braking energy recuperation and torque assist in ISE's innovative hybrid drive systems for heavy vehicles.

"ISE's pioneering energy storage system designs incorporating ultracapacitors gave our BOOSTCAP products their first production-level opportunity in the transit bus market," said David Schramm, Maxwell's president and chief executive officer. "Both of our companies' technology and products have come a long way since then and rising fuel prices and new regulations aimed at reducing CO2 emissions are driving demand that is bringing hybrid drive systems squarely into the transportation mainstream."

"We are thrilled with the opportunity to expand our collaboration with Maxwell, which has consistently demonstrated that it is the world's most capable provider of ultracapacitor products," said Rick Sander, president and CEO of ISE. "Our combined resources and complementary products, along with ISE's hybrid energy storage system expertise will position us to compete for a growing share of the rapidly expanding global market for heavy vehicle drive systems."