Electro Energy Outlines Near-Term Business Plans
DANBURY, CT -- July 12, 2006 -- Executives of Electro Energy Inc. (NASDAQ: EEEI), a developer and manufacturer of advanced rechargeable batteries, discussed details of the Company's operational plans, target markets and potential timing during a special investor conference call and webcast on July 10, 2006.
Martin G. Klein, Founder and Chairman, announced that he will also serve as Chief Technologist, concentrating on business development issues, project formalization and technologies that offer special opportunities, while Michael E. Reed serves as CEO in charge of the Company's day-to-day operations and the transition to serving large commercial markets. "We are well positioned to bring out commercial products that will have very significant market opportunities," Mr. Klein stated.
The webcast is available at: http://ir.electroenergyinc.com/eventdetail.cfm?EventID=28010.
Mr. Reed described four target commercial markets and the company's plans for addressing them following the acquisition, in May 2006, of a major manufacturing facility located near Gainesville, Florida.
The four major target markets for the company's battery products, including its proprietary bi-polar nickel metal hydride battery technology (B-P NiMH), are (1) military applications, which are the furthest advanced; (2) the utility market for distributed alternative energy and distributed storage applications; (3) automotive transportation, and (4) battery-powered tools, including lawn and garden tools.
"We are working diligently in all four of these markets, bringing on board product development and marketing people to address them," Mr. Reed said. "We are in the early development stage for both products and customer relationships, but we hope to announce significant partnerships and contracts in the months ahead, and we expect to see the balance of revenue shift from R&D to commercial sources in 2007."
Regarding the start-up of operations at the Gainesville facility, Mr. Reed said, "We expect this process will be completed in the next couple of months. Currently we produce quantities of prototype samples for commercial customers at a nearby facility. Those production lines will be incorporated into Gainesville, which will be the central location for commercialization by the beginning of 2007."
Discussing the marketing of the Company's battery products, Mr. Reed said, "Our immediate commercial targets involve our bi-polar nickel metal hydride battery technology. We have positioned ourselves to be a supplier for the Air Force's F16 and F18 fighter planes as well as additional aircraft. Our development work for the Department of Energy should lead to specific opportunities with commercial utility markets and we hope to announce some demonstration products in the next 3 to 6 months."
Mr. Reed continued, "In the transportation market, we are targeting hybrid electric vehicles, electric vehicles (including scooters and bicycles) and plug-in hybrid electric vehicles. We have received significant publicity in these areas in recent months, and we believe we'll be a significant player as that technology is adapted into the automotive transportation market. We're developing contacts and partnerships to demonstrate our technology and ultimately to sell it commercially in this market. The power tool industry is our longest-range opportunity, but we see that future measured in months, not years."
Regarding the Company's financial development, Mr. Reed stated, "We anticipate significant revenue growth in 2007. Following the $11-million private placement with a small group of institutional investors last May, we continue to attend certain high-profile investor conferences where we receive substantial positive interest. Our revenue has improved notably this year. We have an improved technology base; we completed the Gainesville acquisition and received substantial financing, and we are aggressively commercializing our technology. In my tenure as CEO and Director of the Company, I expect to see shareholder value increase significantly."
Asked if Electro Energy would be a target for takeover, Mr. Reed replied: "We could be an attractive takeover target, but we're more interested in building value from our own capabilities. We intend to grow the company organically, building our technology and customer base, and adding acquisitions where that may make strategic sense."
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 www.electroenergyinc.com.
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