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Energy Conversion Chairman Praises Natl. Federal Fleet Managers

27 July 1998

Energy Conversion Chairman Stempel Praises National Federal Fleet Managers On Leadership in Alternate Fuel Vehicle Use

    SCOTTSDALE, Ariz., July 27 -- Robert C. Stempel, chairman of
Energy Conversion Devices, Inc. ("ECD") , delivered the Keynote
Address at the First National Federal Fleet Manager Workshop held July 20-23,
1998 in Scottsdale.  Stempel praised federal fleet managers for their
leadership in adopting the use of alternate fuel vehicles (AFV's).  In
addition to the obvious societal and environmental advantages of AFV's, Mr.
Stempel explained that "compared to conventional gasoline powered vehicles,
AFV's provide lower operating and maintenance costs, as well as other benefits
to the driver and passenger."  The federal fleet is the largest vehicle fleet
in the United States with 575,000 cars and trucks.
    To illustrate the lower cost of operation of battery-powered electric
vehicles, Mr. Stempel referred to the recently completed 10th anniversary Tour
de Sol Competition.  A conventional gasoline powered car was matched with an
electric powered car of the same make and model over a 23.5 mile city route in
mid-town Manhattan (New York City).  A four-door Chevrolet GEO Metro with a
gasoline engine was measured against a Solectria Force (the electric version
of the GEO Metro) in terms of operating efficiencies.  The electric car used
2.87 kWh to cover the route and the gasoline car used 2.28 gallons of fuel.
To produce the electricity at the central power plant, the equivalent of .27
gallons of gasoline was needed.*  The gasoline Geo Metro (Metro) achieved 10.3
MPG while the Solectria Force returned an 87 MPG equivalent.  At $1.00 a
gallon, it cost $2.28 for the gasoline and only $.25 to power the Solectria.
In city driving, the Metro's 12 gallon fuel tank would have provided a range
of 120 miles compared to the Solectria's 220 mile range.
    ECD's Ovonic Battery Company, Inc., in conjunction with its joint venture
partner General Motors , manufactures Ovonic NiMH electric and
hybrid electric vehicle batteries at its GM Ovonic facility.  GM Ovonic NiMH
batteries are currently offered in the Chevrolet S-10 electric pick-up truck,
several Solectria models and will be introduced in the GM EV-1 during the 4th
quarter of 1998.
    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.  Further information on the workshop and
ECD can be accessed via the company's web site at 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
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.

    *  Equivalent .27 gallons of gasoline includes:
       51% power plant efficiency
       92% power transmission efficiency
       90% battery charger efficiency
       90% battery energy efficiency