SOURCE: Electro Energy Inc.

May 15, 2008 10:00 ET

Electro Energy Awarded U.S. Army Contract for Thermal Battery Development

DANBURY, CT--(Marketwire - May 15, 2008) - Electro Energy Inc. (NASDAQ: EEEI), a leading provider of advanced battery technologies and associated systems, today announced a contract award from the U.S. Army to continue development of thermal batteries used in military applications.

The U.S. Army has awarded Electro Energy an SBIR phase-two contract for low cost improved thermal batteries. EEEI is developing process manufacturing techniques for the production of thermal battery electrodes and separators. These cell components are flexible, and as a result, can be used to fabricate batteries that have three-dimensional shapes. Electrodes using these techniques have been fabricated and have demonstrated performance superior to that of conventional pressed pellet electrodes. Successful commercialization of EEEI's thermal battery fabrication technology would lead to increased design options applicable to multiple military applications and other commercial markets. The two-year contract value is $729,991.55 and will be incrementally funded for FY08 and FY09 respectively.

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 registered 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, Fla. 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:
    Michael Reed
    (203) 797-2699