SOURCE: Electro Energy Inc.

February 20, 2008 10:07 ET

Electro Energy Inc. Awarded $5 Million Contract to Manufacture Military Aircraft Batteries

DANBURY, CT--(Marketwire - February 20, 2008) - Electro Energy Inc. (NASDAQ: EEEI), a leading provider of advanced battery technologies and associated systems today announced a $5 million contract award from the U.S. Defense Logistic Agency ("DLA") to manufacture batteries for the U.S. Army Kiowa Helicopter.

DLA has awarded Electro Energy a contract to provide nickel cadmium ("NiCd") batteries, NiCd cells and associated heater blanket assemblies for the U.S. Army Kiowa Helicopter fleet. This production contract has a two-year base period and three additional option years with guaranteed minimum order quantities for each year. The two-year base period has a maximum contract value of $5.2 million and a five-year contract maximum value of $13.3 million. The batteries and other system components will be produced at Electro Energy's AS9100/ISO9001 certified Colorado Springs facility. In addition to this newly awarded contract for the Kiowa Helicopter, Electro Energy's manufacturing facility in Colorado Springs has an extensive history of providing batteries for military aircraft, including the B-1 Bomber, B-2 Stealth Bomber, B-52 Heavy Bomber, Apache Helicopter and the Cobra Attack Helicopter.

Michael E. Reed, Electro Energy's President and CEO, said, "The Company has a long history of providing batteries and related systems to the U.S. Armed Services for a variety of applications. This contract exemplifies Electro Energy's capabilities in providing battery technology for military applications which require highly durable and reliable batteries to meet the most demanding mission critical and battlefield requirements."

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, 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:
    Brenda Cooper
    203-797-2699