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ECD Announces New Joint Venture to Produce Ovonic NiMH Batteries And Battery Materials in Russia

10 March 1998

ECD Announces New Joint Venture to Produce Ovonic NiMH Batteries And Battery Materials in Russia

    TROY, Mich., March 10 -- Energy Conversion Devices, Inc.
("ECD") announced today the formation of Sovlux Battery, a new
branch of Sovlux, its U.S.-Russian joint venture.  Owned 50% by ECD and 50% by
the Chepetsky Mechanical Plant in Glazov, Siberia ("Glazov"), Sovlux Battery
will produce NiMH battery materials for sale to ECD's subsidiary, Ovonic
Battery Company, Inc. ("Ovonic Battery"), and to Ovonic Battery's NiMH battery
licensees, and will manufacture batteries for the emerging two- and three-
wheeled electric vehicle market in Europe and Asia.
    Glazov is an enterprise under the Russian Ministry of Atomic Energy
(MINATOM), the ministry which oversees 1,000,000 employees responsible for
Russia's atomic/nuclear energy and weapons programs.  Formation of Sovlux
Battery represents the first major implementation of the 1996 agreement which
brought MINATOM into the Sovlux joint venture.  The Sovlux Battery venture was
announced in conjunction with the Gore-Chernomyrdin meeting in Washington this
week.
    The use of abundant Russian raw materials for the battery, Glazov's alloy
processing and production expertise, and joint collaboration on battery
research and development are expected to result in substantial reductions in
the cost of Ovonic Battery's proprietary NiMH batteries.
    "This comes at a very important time in the development of our battery
business in the emerging electric vehicle market," said Stanford R. Ovshinsky,
President and CEO of ECD and CEO of Ovonic Battery.  "Ovonic NiMH batteries
have become the battery of choice for electric vehicles, and Sovlux Battery
will help us provide these batteries at a reduced cost.  This will be of
particular use in our recently-announced strategic alliance with EV Global
Motors Company to expand the market for light electric vehicles.  We are also
pleased to participate in turning swords into plowshares in Russia."  Ovonic
Battery holds fundamental patents in NiMH battery technology.  All major NiMH
battery producers are under license to Ovonic Battery.
    Pursuant to the joint venture agreement, Glazov will pay ECD a $1,500,000
technology transfer fee, $600,000 of which has already been paid.  Glazov
scientists have received extensive training and technology transfer at Ovonic
Battery.  The agreement also calls for building battery production machines in
both the U.S. and Russia, taking advantage of both ECD's and Glazov's
machine-building expertise.
    Converting Russia's extensive facilities and personnel from the production
of nuclear weapons to clean energy technologies furthers U.S. prevention of
nuclear proliferation efforts, and has resulted in the award of several
Department of Energy "Initiative for Proliferation Prevention" grants to
Sovlux and other scientists working on Sovlux technologies.
    ECD is a leader in the synthesis of new materials and the development of
advanced production technology and innovative products.  It has pioneered the
development of products and production technology based on amorphous,
disordered and related materials, with an emphasis on alternative energy and
advanced information technologies.  ECD's web site is http://ovonic.com.

SOURCE  Energy Conversion Devices, Inc.