SOURCE: Electro Energy Inc.

April 21, 2008 16:52 ET

Electro Energy Announces Receipt of Going Concern Opinion

DANBURY, CT--(Marketwire - April 21, 2008) - Electro Energy Inc. (NASDAQ: EEEI), a leading provider of advanced battery technologies and associated systems, today announced its independent registered public accounting firm has issued a going concern uncertainty as part of its audit opinion on the Company's 2007 consolidated financial statements due to the Company's need to raise additional capital to implement its business plan.

Michael E. Reed, Electro Energy's President and CEO, stated, "We are engaged in the development of energy storage technology, products and related systems, and, for over a year, the start up of high volume battery manufacturing operations in our Florida facility. As we have disclosed in previous financial reports, until we generate sufficient product sales revenue, the Company's ability to develop high volume manufacturing and execute its product sales and marketing plans will be dependent on the receipt of funding from government development contracts as well as the Company's ability to raise cash through future equity and debt financings. We believe that our ongoing requirements to raise additional capital are consistent with those of companies that are in a similar stage of development."

About Electro Energy Inc.

Electro Energy Inc., headquartered in Danbury, Connecticut, was founded in 1992 to develop, manufacture and commercialize high-powered, rechargeable bipolar wafer cell nickel-metal hydride batteries for use in a wide range of applications. Its Colorado Springs operation is AS9100/ISO9001 certified and 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 bipolar wafer cell design. EEEI owns significant manufacturing assets near Gainesville, Florida for rechargeable lithium ion 18650 cylindrical cells, the standard cell used in the electronics industry. For further information, please visit 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:
    Brenda Cooper
    (203) 797-2699