Maxwell Technologies and Tianjin Lishen Battery to Introduce 'Hybrid' Energy Storage Solutions Combining Ultracapacitors and Li-Ion Batteries

Companies See Large Market Opportunity for Products Incorporating Complementary Technologies

SAN DIEGO, Nov. 19 -- Maxwell Technologies, Inc. and Tianjin Lishen Battery Joint-Stock Co., Ltd., (Lishen), China's leading producer of rechargeable lithium-ion batteries, today announced an alliance through which they plan to manufacture and market novel "hybrid" energy storage products combining the companies' respective ultracapacitor and li-ion battery technologies.

David Schramm, Maxwell's president and chief executive officer, said that the companies see a large market opportunity for products that leverage the complementary strengths of double layer capacitor and li-ion battery technologies.

"We believe that the products we envision will give end-users the best of both worlds in terms of the long cycle life, rapid charge/discharge characteristics and low temperature performance of ultracapacitors and the large energy storage capacity of lithium-ion batteries," Schramm said. "We also plan to move some of our BOOSTCAP product assembly to Lishen in order to leverage our joint process engineering capabilities, and Lishen will conduct development and qualification testing on battery electrode material produced through Maxwell's proprietary dry process, so we see this as a deep and strategically important alliance for both companies."

Lishen currently produces more than 130 million li-ion batteries annually in its state-of-the-art, 860,000 square-foot, production facility, located in Tianjin, China, supplying rechargeable batteries to multiple cellular telephone manufacturers, including Motorola and Samsung, and numerous consumer electronics manufacturers, including Apple for devices such as MP3 players.

Qin Xing-cai, Lishen's President, said, "When we determined that we wanted to market hybrid energy storage products, we identified Maxwell as the ultracapacitor technology leader, so we are very excited about joining forces for this collaboration."

The companies have identified a number of initial target applications for the new products, ranging from quick-charge cordless tools to electric vehicles, and anticipate production and delivery of initial product samples in early 2008.

About Lishen -- Tianjin Lishen Battery Joint-Stock Co., Ltd., is China's leading producer of rechargeable lithium-ion batteries with 2007 sales estimated to reach approximately $200 million. The company was formed in 1997, and began production in 2000. Its production facilities have been certified to ISO9001 and ISO14001 standards and its products have been certified by Underwriters Laboratory (UL), Committee European (CE) and other international standards agencies. In 2006, Lishen was ranked eighth among Forbes Magazine's Top 100 High Potential Chinese Enterprises. For additional information, please visit http://www.lishen.com.cn/.

About Maxwell -- 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 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;
  -- 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 these documents may be obtained at our investor relations website: 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 November 19, 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.