SOURCE: Electro Energy Inc.

May 01, 2007 09:04 ET

Torc Investments & Research LLC Initiates Coverage of Electro Energy Inc. With a "Buy" Rating and 12-Month Price Target of $1.50-$2.00

NEW YORK, NY -- (MARKET WIRE) -- May 1, 2007 -- Electro Energy Inc. (NASDAQ: EEEI) announced today that Torc Investments & Research LLC, a NYSE and NASD registered broker-dealer, initiated coverage of the Company today with a "Buy" Rating and 12-month Price Target of $1.50-$2.00.

The Report, issued by Director of Research Amanda McNamara, noted that, "After years of extensive due diligence and testing, the company is now transitioning from battery research and development to mass production. In order to adequately supply the market with scaleable, competitively priced products, Electro Energy purchased a state-of-the-art manufacturing facility in Florida in April 2006. With initial production anticipated to begin late in the 4th quarter of this year, it will be important for the company to effectively manage all resources to maximize throughput and minimize cycle time while maintaining lower operating costs. Due to its strong industry contacts with various departments of the U.S. military, Electro Energy has the opportunity to become the only domestic supplier of the roughly 10 million lithium-ion batteries that are purchased each year by the Army for use in communications equipment."

The report continued that, "If successful, the market opportunity is significant for the company and could generate in excess of $30 million in sales each year if the entire order is awarded to the company. Outside of the military arena, it is our opinion that the company targets exciting markets that enable the company to diversify its customer base, eliminating reliance on one sector for success. The hybrid and plug-in hybrid vehicles sector of the automobile market represents an attractive early-stage opportunity for the company, where such alternative vehicles are expected to reach 35% of total vehicle sales by 2010. We believe a fair price target range for Electro Energy Inc. over the next 12 months is $1.50 to $2.00 (equating this valuation to a price-to-book ratio in the 1.6x-2.2x range, which is discounted to the industry average of 3.9x by roughly half since the company is at the early stage of its commercialization process)."

The entire report is available at the Electro Energy Inc. website: http://www.electroenergyinc.com/ or at the Torc Investments & Research LLC website at http://www.torcinvestments.com/index.php/site/research.

About Torc Investments & Research LLC

Torc Investments & Research LLC is a NASD registered broker-dealer offering a multitude of specialized services. The firm acts as an introducing broker to Merrill Lynch for hedge funds, institutional and high net worth retail accounts. It offers execution services through TradeSpeed technology which provides its client with direct market access with an emphasis on celerity. The company's research department provides in-depth, fundamental research analysis for equities with its core focus on the micro-cap and small-cap sector. Industry experience, coupled with superb technology and customer service, allow TORC Investments & Research to offer their clients advantageous and valuable resources in the financial sector.

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. Electro Energy has compensated Torc Investments and Research with thirty-five thousand dollars for one year of coverage. 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:
    Amanda McNamara
    Torc Investments & Research LLC
    212-897-7317