SOURCE: Electro Energy Inc.

May 31, 2007 09:00 ET

Electro Energy Inc. Announces Contract Award for Development of Advanced Nickel Metal Hydride Aircraft Batteries

DANBURY, CT--(Marketwire - May 31, 2007) - Electro Energy Inc. (NASDAQ: EEEI), a leading provider of advanced battery technologies and associated systems, today announced a new contract award from Universal Technology Corporation for development of an advanced nickel metal hydride ("NiMH") aircraft battery.

Universal Technology has selected Electro Energy as a partner in developing an enhanced chemistry and mechanical design for improved temperature performance in the NiMH aircraft battery used by the U. S. Air Force. The technology advancement efforts will be focused on developing a cell stack battery module with improved low temperature performance utilizing the bipolar wafer cell design. This contract is part of the Air Force program to define chemical and electronic improvements needed on NiMH aircraft batteries for broad implementation within the Air Force aircraft fleet. The award is part of the previously announced Congressional appropriation for bipolar NiMH battery development.

Michael Reed, Electro Energy's President and CEO, said, "I am confident that our NiMH battery can play a vital role in key military applications by providing improved performance compared with the current technology. Once the development activity is complete, there is an opportunity to implement this advanced battery throughout the Air Force aircraft fleet resulting in improved performance and operating and maintenance cost reductions. The continued DOD funding will allow Electro Energy to continue development of its patented bipolar wafer-cell technology for stationary energy storage applications and, additionally, will contribute to laying the groundwork for demonstrating that the technology will also be the technical and economic choice for plug-in hybrid vehicles."

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 bi-polar design. EEEI has recently acquired significant manufacturing assets near Gainesville, Fla. to accelerate commercialization of its battery technology. For further information, please visit http://www.electroenergyinc.com/.

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.

Contact Information

  • Contact:
    Michael Wachs
    CEOcast, Inc. for Electro Energy
    (212) 732-4300