Maxwell Technologies and Siemens Matsushita Join Forces
30 July 1998
Maxwell Technologies and Siemens Matsushita Join Forces to Develop, Manufacture and Market Ultracapacitors
SAN DIEGO--(AutomotiveWire)--July 30, 1998--Maxwell Technologies Inc. (NMS:MXWL) announced today that it has entered into a broad-based agreement with Siemens Matsushita Components GmbH.
The agreement includes the transfer of technology, sharing of ongoing product development, and the manufacturing, marketing and sales of Maxwell's PowerCache(TM) ultracapacitors by Siemens Matsushita. Siemens Matsushita will receive non-exclusive licensing rights as part of the agreement. The worldwide agreement, exclusive of NAFTA countries, calls for initial licensing fees, as well as royalty payments on sales, to be paid to Maxwell.
Siemens Matsushita anticipates opportunities for ultracapacitors in automotive applications, power quality systems, consumer electronics, power tools, telecommunications devices and other electrical and electronic products. Ultracapacitors are advanced, high-energy storage devices capable of providing large bursts of power.
"We are pleased to have entered into this partnership with Maxwell; we view them as the leader in ultracapacitor technology. It is our intent to manufacture and sell the PowerCache product into a wide range of markets, as well as incorporating ultracapacitors into a number of our own power products," said Gerhard Pegam, president of Siemens Matsushita Components Capacitor Division. "Our selection was made after a thorough evaluation of Maxwell's technology. We will be ramping production over the next few years and anticipate manufacturing for a demand in excess of $50 million in European ultracapacitor sales annually."
"Our agreement with Siemens Matsushita has the potential to be the largest commercial corporate development in Maxwell's history," acknowledged Kenneth F. Potashner, chairman and chief executive officer of Maxwell Technologies. "This partnership establishes us as the unquestioned leader in the ultracapacitor business and provides the manufacturing and marketing clout that will allow both parties to take full advantage of the global demand for this new energy storage technology. We expect Siemens Matsushita and Maxwell to simultaneously build manufacturing capabilities to accommodate very high global volumes over a 3 to 5 year period."
Added Gregg McKee, president of Maxwell's Energy Products subsidiary: "The Company has previously announced that new automation equipment is on order, giving us a manufacturing capacity approaching one million ultracapacitors a quarter by mid-1999. We look forward to our cooperative effort with Siemens Matsushita and know that Maxwell will benefit from that organization's demonstrated strengths in designing and installing high-volume production facilities. We are especially pleased that our partnership with Siemens Matsushita now gives us a second-source capability for customers in high-volume applications who require this level of support. In addition, the sales and marketing resources of Maxwell will be dramatically enhanced by the efforts of Siemens Matsushita."
Maxwell will initially meet Siemens Matsushita's demand for product by manufacturing the ultracapacitors in its San Diego factory. Specific terms of the agreement were not disclosed and final agreement is subject to approval by Siemens Matsushita's Board of Directors. Both parties anticipate approval in September.
Siemens Matsushita Components is a joint venture of Siemens AG and Matsushita Electrical Industries in the field of passive electric components, with annual sales of approximately $1.2 billion.
Maxwell Technologies is a leader in pulsed power technologies, providing pulsed power based systems and components for a wide range of commercial applications and research and development for both commercial customers and the U.S. government. The company's advanced technology solutions address diverse markets such as utilities, telecommunications, medical equipment and products, food processing and packaging and transportation. The company also offers industrial computers and subsystems, primarily to OEMs in computer telephony and other markets, and software products and services, both for government research and for various commercial applications.
Except for historical information contained herein, the matters discussed in this news release are forward-looking statements that involve risks and uncertainties, including product development based on new technologies, applications and acceptance of new products in major markets, demand for the OEM's product reaching anticipated levels, the impact of competitive products and pricing, risks and uncertainties involved in foreign operations, and other risks detailed from time-to-time in the company's SEC reports, including the report on Form 10-K for the year ended July 31, 1997.
Actual results may differ materially from those projected. These forward-looking statements represent the company's judgment as of the date of this release. The company disclaims, however, any intent or obligation to update these forward-looking statements.