October 20, 2005
Electro Energy Inc. (Nasdaq: EEEI), a leading provider of advanced battery technologies and associated systems, and In-Q-Tel, a private, not-for-profit venture group funded by the Central Intelligence Agency, today announced a new technology development agreement for advanced rechargeable bipolar lithium ion (BPLI) batteries.
The resulting BPLI battery is intended to exhibit both high-specific energy and high-specific power, due to the efficiency of the EEEI bipolar cell and battery design. In previous work, EEEI has demonstrated BPLI cells with a specific energy greater than 200 Wh/kg and an energy density greater than 400 Wh/l. The development will be conducted at EEEI’s battery manufacturing facility in Colorado Springs, Colorado.
Martin Klein, Chairman and CEO of EEEI, said, “We are extremely pleased with the capabilities of our prototype bipolar lithium ion technology. It has surpassed our expectations and will contribute importantly to military applications where high power, high energy density and low cost are critical advantages. In addition, we intend to bring this technology to the commercial sector for portable and mobile battery applications as soon as possible.”
The EEEI bipolar lithium ion design – the result of an R&D program begun in March 2004 – provides a very high surface area per unit of energy, which results in high power capability while minimizing wasted space and reducing weight and volume. When fully developed, the benefit potential over conventional batteries is lower cost, increased power density, longer life and improved reliability. In addition, the unique battery cell design will allow the battery to be configured in small areas and conform to other specialized design requirements.
Simultaneously with the development agreement, EEEI is entering into an $800,000 stock purchase and warrant agreement with In-Q-Tel, announced earlier today. The purchase price for the stock and warrants is expected to be paid over the course of 14 months following the closing, conditioned upon EEEI achieving certain development milestones. No separate payments will be made or required under the development agreement.
About Electro Energy Inc.
Electro Energy Inc., headquartered in Danbury, Connecticut, was founded in 1992 to develop, manufacture and commercialize high-powered, rechargeable bipolar nickel-metal hydride batteries for use in a wide range of applications. Its Colorado Springs operation supplies aerospace-grade high quality nickel cadmium batteries and components for satellites, aircraft and other specialty applications. EEEI is also developing high power lithium rechargeable batteries utilizing the Company’s proprietary design. In May, EEEI announced plans to acquire significant manufacturing assets near Gainesville, Fla., by the end of 2005 to accelerate commercialization of its battery technology.
Certain statements in this news release may contain forward-looking information within the meaning of Rule 175 under the Securities Act of 1933 and Rule 3b-6 under the Securities Exchange Act of 1934, and are subject to the safe harbor created by those rules. All statements, other than statements of fact, included in this release, including, without limitation, statements regarding potential future plans and objectives of the companies, are forward-looking statements that involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Factors that could cause actual results to differ materially from those in the forward-looking statements include, among other things, the following: general economic and business conditions; competition; unexpected changes in technologies and technological advances; ability to commercialize and manufacture products; results of experimental studies; research and development activities; changes in, or failure to comply with, governmental regulations; and the ability to obtain adequate financing in the future. This information is qualified in its entirety by cautionary statements and risk factors disclosure contained in certain of Electro Energy Inc.’s Securities and Exchange Commission filings available at http://www.sec.gov.
Pursuant to a December 1, 2004 agreement, Consulting For Strategic Growth I, Ltd. (“CFSG”) provides Electro Energy with consulting, business advisory, investor relations, public relations and corporate development services, for which CFSG receives a fixed monthly fee for the duration of the agreement. Independent of CFSG’s receipt of cash compensation from Electro Energy, CFSG may choose to purchase the common stock of Electro Energy and thereafter sell those shares at any time it deems appropriate to do so.