ECD Awarded Subcontract by Department of Energy's National Renewable Energy Laboratory

ROCHESTER HILLS, Mich., May 9, 2003 -- Energy Conversion Devices, Inc. (ECD) , a pioneer in hydrogen- based energy solutions, including solar, rechargeable nickel metal hydride (NiMH) batteries, hydrogen storage systems and regenerative fuel cells, has been awarded a subcontract by the U.S. Department of Energy's (DOE) National Renewable Energy Laboratory (NREL) to develop new solar cell technology. The subcontract will provide matching funds for a research and development program aimed at lowering the manufacturing cost of solar cells. NREL will fund about $3 million of the approximately $6 million three-year, phased subcontract, with ECD providing the balance of the funds.

In a press release issued by the DOE on May 8, 2003, Energy Secretary Spencer Abraham said, "Solar power promises to be a significant source of electricity, and this project supports President Bush's National Energy Plan which calls for an increase in research and development of nature's power -- renewable energy resources."

"This subcontract is the latest in our long-standing, mutually successful relationship with NREL and DOE," said Stanford R. Ovshinsky, president and CEO of ECD and chairman and CEO of United Solar Systems Corp. "The program is another important step forward in one of our company's key missions, which is to put more power in the hands of customers through energy-efficient technology. While our patented solar products have existed for many years and are currently powering homes and businesses today, research and development programs like this will make solar power more widespread and expand its potential as a major source of our energy needs."

Solar technologies are a major aspect of ECD's overall mission to tap the power of hydrogen for many energy applications. The company invented, pioneered and is developing enabling technologies needed for a hydrogen economy to exist and is the leader in a number of initiatives involving hydrogen-based power.

United Solar operates the world's only advanced production machine for manufacturing thin-film amorphous silicon alloy solar cells and related products that convert sunlight to electricity. The research program will concentrate on developing online diagnostic systems for monitoring, closed loop control, and eventual continuous online optimization of the 30MW photovoltaic manufacturing line. All future manufacturing lines will benefit from this technology, resulting in more rapid start-up and commissioning, higher yield, and lower cost of production.

ECD is uniquely positioned to drive all aspects of the hydrogen economy and has been the major proponent of the Hydrogen Economy since the company's founding in 1960. ECD is developing technologies to enable the hydrogen economy infrastructure required to usher in a new generation of safe and affordable hydrogen-powered internal combustion engine vehicles, fuel cell vehicles, as well as home and office power. ECD holds the basic patents for the development of numerous hydrogen-based technologies ranging from NiMH batteries to fuel cells to solar panels -- all required to turn vision into reality.

ABOUT ECD:

ECD 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 enabling technologies leading to new products and production processes based on amorphous, disordered and related materials, with an emphasis on advanced information technologies and alternative energy, including photovoltaics, hydride batteries, fuel cells and 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. ECD 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 holds the basic patents in its fields. ECD's website address is http://www.ovonic.com/ .

This release may contain forward-looking statements within the meaning of the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are based on assumptions which ECD, as of the date of this release, believes to be reasonable and appropriate. ECD cautions, however, that the actual facts and conditions that may exist in the future could vary materially from the assumed facts and conditions upon which such forward-looking statements are based.