Major Automotive Supplier Selects Maxwell Technologies' BOOSTCAP(R) Ultracapacitors for Electrical System Stabilization

Initial High-Volume Series Production Expected in Late 2009 for 2010 Automotive Model Year

SAN DIEGO, Jan. 7 -- Maxwell Technologies Inc. announced today that Continental AG, one of the world's leading automotive electronics and mechatronics suppliers, has selected Maxwell's BOOSTCAP(R) ultracapacitors as the energy storage element of a "boardnet" stabilization system it is developing for a major automaker.

David Schramm, Maxwell's president and chief executive officer, said that Continental has advised the company to prepare to begin delivering initial series production volumes in the second half of 2009 for the 2010 automotive model year.

"After many years of design and development work on automotive applications, this design win for a high-volume series production program is a very significant milestone for Maxwell," Schramm said. "Over the life of this program, Continental will require very large quantities of ultracapacitor cells to produce these boardnet stabilization modules."

In this application, ultracapacitors provide a reservoir of standby power to ensure stable functioning of the vehicle's electrical system when multiple power demands tax the system. Schramm said that Maxwell is working with Continental on other automotive programs, and with other Tier 1 suppliers, automakers and heavy vehicle OEMs on ultracapacitor-based solutions for other electrical subsystem applications, such as capacitive starting, as well as for a wide range of energy-efficient, low-emission, electric and hybrid drive train configurations.

"We continue to focus on aligning ourselves with industry leaders such as Continental, and on expanding and enhancing our design and production capabilities to solidify our position as the leading and lowest-cost producer of ultracapacitor-based solutions to accelerate BOOSTCAP(R) ultracapacitor products' penetration of these key strategic markets," Schramm said.

Maxwell Technologies 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, automotive, 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;
  --  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;
  --  product liability or warranty claims in excess of our reserves.

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 Maxwell's 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 by contacting our investor relations department at (858) 503-3434 or at our investor relations website at http://www.maxwell.com/investors/sec-filing.asp . All information in this release is as of January 7, 2008. 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.