Ovonic Battery Is Filing A Lawsuit Against Matsushita Battery

    TROY, Mich., March 6 Energy Conversion Devices, Inc.
("ECD") announced today that its subsidiary, Ovonic Battery
Company, Inc.  ("Ovonic Battery"), has filed suit in federal court in Detroit,
Michigan against Matsushita Battery Industrial Co., Ltd. ("MBI"), Toyota Motor
Corporation, Panasonic EV Energy Co., Ltd. and several related entities for
infringement of patents held by Ovonic Battery.

    MBI and Panasonic EV Energy Co. supply Nickel-Metal Hydride (NiMH)
batteries used in the Toyota Prius gasoline-electric hybrid car sold in the
United States by Toyota Motor Corporation.  The lawsuit charges that MBI's
hybrid electric vehicle batteries, battery components and battery systems
infringe patents held by Ovonic Battery.

    In addition to filing suit, Ovonic Battery today terminated a 1992
agreement which licensed MBI under patents held by ECD and Ovonic Battery for
the manufacture and sale of small consumer batteries.  MBI had breached that
agreement by failing to pay millions of dollars in royalties to Ovonic
Battery.  In its lawsuit, Ovonic Battery seeks damages for those unpaid
royalties, and also seeks to enjoin the importation of all Panasonic
electronic products that contain batteries using Ovonic Battery's patented
technology.  MBI and its related companies annually sell hundreds of millions
of batteries and electronic products principally under the Panasonic name
which use Ovonic Battery's patented technology.

    Robert C. Stempel, Chairman of ECD and Ovonic Battery, said, "While we
strongly support the production and sale of electric and hybrid electric
vehicles, it is very unfortunate that Matsushita and Toyota are entering the
environmentally significant market for hybrid electric vehicles with
technology that does not belong to them.  After overtures to Matsushita were
rejected and several unsuccessful attempts to discuss this matter with Toyota,
we have been forced to take this strong action to protect the U.S.
government's investment in American technology and the interests of our
stockholders."

    Stanford R. Ovshinsky, President and CEO of ECD and CEO of Ovonic Battery,
said, "U.S.-based auto manufacturers are currently getting ready to introduce
hybrid vehicles and Ovonic Battery has been preparing for production of NiMH
battery packs to meet their needs.  We cannot tolerate patent-infringing
products."

    Ovonic Battery was founded by ECD in 1982 to develop and commercialize its
basic proprietary NiMH rechargeable battery technology.  All significant
consumer battery manufacturers worldwide (28 NiMH manufacturers) are licensees
of Ovonic Battery.  Ovonic Battery received, and successfully completed, the
first contract awarded by the United States Advanced Battery Consortium to
develop NiMH batteries for use in electric vehicles.  As part of its contract,
Ovonic Battery established a NiMH battery manufacturing facility in the United
States.  The Ovonic NiMH battery for electric vehicles is the first and only
battery to exceed 200 miles on a single charge during official tests conducted
for the United States Department of Energy and has become the enabling
technology for electric and hybrid electric vehicles.