SOURCE: Electro Energy Inc.

August 15, 2008 12:08 ET

Electro Energy Receives $100,000 Order for U.S. Produced 18650 Lithium-Ion Batteries

DANBURY, CT--(Marketwire - August 15, 2008) - Electro Energy Inc. (NASDAQ: EEEI), a leading provider of advanced battery technologies and associated systems, announced today that Lyntronics, Inc., a New York based battery packager, has placed multiple orders for both Electro Energy's 2.2 ampere hour USA18650AXC and 2.4 ampere hour USA18650BXC type rechargeable Lithium-Ion cells valued at over $100,000. These orders were placed after successful completion of qualification testing at a U.S. Navy Naval Research Laboratory. These cells will be manufactured at Electro Energy's 100,000 square foot Manufacturing Facility in Gainesville, FL, which is the largest facility producing 18650 type cells outside Asia with the capacity to produce over thirty million cells per year.

The Electro Energy USA18650BXC type cells will be assembled into battery packs by Lyntronics and installed in communications equipment used by the United States Armed Forces. Availability of domestically produced 18650 type batteries has been well received by the Government Procurement Community. Prior to startup of Electro Energy's Florida facility, domestic commercial and military customers were completely reliant on 18650 cells that were either sourced from outside the U.S., primarily from Asia. Electro Energy's recent success in designing, developing and qualifying 18650 cells now affords these customers an alternative domestic supplier that will help them avoid costly delays and potential business disruptions created by a long and complex supply chain.

Anthony Vigliotti, Lyntronics' President and CEO, said, "The world market demand for Lithium-Ion cells is presently at its highest point ever. Two major suppliers of this cell type had catastrophic fires in their assembly plants within the last year that severely diminished the available quantity to the world market. The U.S. Military requires a huge amount of this rechargeable energy source and the demand grows daily. Lyntronics is concerned as to how we will meet this demand and satisfy our contractual obligations. Currently, there are no domestic producers of these cells and this is a situation which is not desirable. A domestic source of Lithium-Ion cells would help ensure that the supply to our military forces will not be jeopardized. Electro Energy's entry into this marketplace is timed perfectly. We have tested and had the military test their product for use in our batteries and have concluded that their cells are well within specification. We have therefore purchased a sizable quantity of cells to meet our ever increasing Lithium-Ion needs."

About Lyntronics, Inc.:

Lyntronics, Inc. is a privately-owned corporation founded in 1987 by current President and CEO, Anthony Vigliotti. Its mission is to design, develop and manufacture portable power for military applications. Since inception, the company has operated, almost exclusively, as a prime contractor to the U.S. Military. In this role, Lyntronics has designed, developed and manufactured over one hundred proprietary battery systems for all branches of the Military. In addition to these unique designs, Lyntronics has also successfully furnished both the U.S. Military and the military of other friendly foreign countries with high quality rechargeable and non-rechargeable batteries built to military specifications.

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 developing high power lithium rechargeable batteries utilizing the Company's proprietary bipolar wafer cell design. Its Gainesville, Florida facility is the largest lithium ion battery manufacturing plant in the US with annual capacity of over 30 million 18650 cylindrical cells, the standard cell used in the electronics industry. For further information, please visit

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

Contact Information

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    Mike Reed
    (203) 797-2699