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Texaco and ECD Sign MOU for Restructured Battery Joint Venture

13 October 2000

Texaco and ECD Sign MOU for Restructured Battery Joint Venture

    Each will have a 50 percent interest in the new entity, Texaco Ovonic

    TROY, Mich., Oct. 12 Energy Conversion Devices, Inc. (ECD)
announced today that Texaco Inc. and Ovonic Battery
Company, Inc. (Ovonic Battery), a subsidiary of ECD, signed a Memorandum of
Understanding to continue the business of GM Ovonic in a new entity, to be
named Texaco Ovonic, LLC, in which General Motors' interest was converted and
restructured so that ECD and Texaco each will have a 50 percent interest in
the joint venture.  The MOU was signed concurrent with an MOU signed between
Texaco and GM on Oct. 10, 2000.
    GM Ovonic was formed in 1994 between GM and Ovonic Battery to manufacture
proprietary Ovonic NiMH batteries for electric vehicles.  Ovonic Battery is
the originator of NiMH batteries and was the first company to be awarded a
contract by the United States Advanced Battery Consortium (USABC).  GM decided
to team with Ovonic Battery to jointly develop the production processes and
manufacturing equipment for commercialization of the NiMH batteries which have
become the enabling technology for electric and hybrid electric vehicles.
    Consistent with GM's commitment to focus on its core vehicle business, it
opted to completely exit the component business, most recently spinning off
the Delphi vehicle component operations.  This strategy provided an
opportunity for Texaco to further expand its alternate energy business
through its acquisition of GM's share of GM Ovonic.  In May, Texaco had made a
20 percent investment in ECD and, in September, formed its first 50-50 joint
venture with ECD in fuel cells.  Texaco is planning to establish a joint
venture with ECD based on Ovonic solid storage of hydrogen.
    Texaco Ovonic plans to expand the applications of the NiMH battery to
include hybrid electric vehicle and fuel cell electric vehicle batteries as
well as starter, lighting and ignition batteries, including the important new
36-42 volt applications.  Non-automotive applications are also planned.
    In a joint statement, Stanford R. Ovshinsky, president and CEO of ECD and
CEO of Ovonic Battery, and Robert C. Stempel, chairman of ECD and Ovonic
Battery, said, "This is a great transition for Ovonic Battery.  With the broad
reach and marketing expertise of Texaco, a global energy leader, we will be
able to fully commercialize the Ovonic NiMH battery and expand its
applications."
    Operating in over 150 countries worldwide, Texaco explores for and
produces crude oil, natural gas and natural gas liquids; manufactures and
markets high-quality fuels and lubricants; operates trading, transportation
and distribution facilities; and produces alternate forms of technology for
the conversion of coal, petroleum coke and other low-value hydrocarbons into a
clean synthesis gas, which is used for the production of electric power as
well as chemical products and industrial gases, including hydrogen.