Maxwell Technologies to Design and Produce Ultracapacitors for Advanced Engineering Hybrid Drive Train Program

Ultracapacitors' Rapid Charge/Discharge Capabilities Boost Acceleration and Increase Braking Energy Recuperation Efficiency, Reducing Fuel Consumption and Emissions

SAN DIEGO, Sept. 10 -- Maxwell Technologies, Inc. announced today that it has been awarded a contract by Mercedes Car Group to design and produce ultracapacitors for an advanced engineering hybrid-electric drive train program incorporating a braking energy recuperation system that enables it to increase fuel efficiency and reduce emissions.

David Schramm, Maxwell's president and chief executive officer, said that the contract provides for funding from Mercedes to develop a new BOOSTCAP(R) ultracapacitor cell specifically designed to meet the energy storage and power delivery requirements of one of Mercedes' torque assist and recuperative braking systems.

"Mercedes-Benz is a global automotive technology leader, so working more closely with its research and development organization will give us the opportunity to demonstrate Maxwell's capabilities as a supplier for future series production programs," Schramm said.

Schramm said that Maxwell also is working with automotive and heavy transportation OEMs as well as leading Tier 1 suppliers worldwide to design and develop ultracapacitor-based energy storage and power delivery solutions for electrical subsystem applications, such as enhanced starting and power network net stabilization, and for numerous fuel-efficient, low-emission, hybrid drive train configurations.

"We continue to focus on establishing Maxwell as the leading and lowest-cost producer of ultracapacitor products and aligning ourselves with innovative OEMs and system integrators to achieve the broadest possible penetration of these key strategic markets," Schramm said.

Maxwell is a leading developer and manufacturer of innovative, cost-effective energy storage and power delivery solutions. Our BOOSTCAP(R) ultracapacitor cells and multi-cell modules provide safe and reliable power solutions for applications in consumer and industrial electronics, transportation and telecommunications. Our CONDIS(R) high-voltage grading and coupling capacitors help to ensure the safety and reliability of electric utility infrastructure and other applications involving transport, distribution and measurement of high-voltage electrical energy. Our radiation- mitigated microelectronic products include power modules, memory modules and single board computers that incorporate powerful commercial silicon for superior performance and high reliability in aerospace applications. For more information, please visit our website: http://www.maxwell.com/.

Forward-Looking Statements: Statements in this news release that are "forward-looking statements" are based on current expectations and assumptions that are subject to risks and uncertainties. Actual results could differ materially because of factors such as:

  -- development and acceptance of products based on new technologies;
  -- demand for original equipment manufacturers' products reaching
     anticipated levels;
  -- general economic conditions in the markets served by the company's
     products;
  -- cost-effective manufacturing of new products;
  -- the impact of competitive products and pricing;
  -- risks and uncertainties involved in foreign operations, including the
     impact of currency fluctuations.

For further information regarding risks and uncertainties associated with Maxwell's business, please refer to the "Management's Discussion and Analysis of Financial Condition and Results of Operations" and "Risk Factors" sections of our SEC filings, including, but not limited to, our annual report on Form 10-K and quarterly reports on Form 10-Q, copies of which may be obtained electronically at our investor relations website at http://www.maxwell.com/investors/sec-filing.asp, or by contacting Maxwell's investor relations department at +1 (858) 503-3434.

All information in this release is as of September 10, 2007. The company undertakes no duty to update any forward-looking statement to conform the statement to actual results or changes in the company's expectations.