A123Systems and Cobasys Partnership to Supply General Motors with Lithium Ion Battery for its Plug- in Hybrid Development Program.

A123Systems' Automotive-Class Battery Technology To Be Tested In Prototype Saturn Vue Green Line Plug-In Hybrid SUVs

WATERTOWN, Mass. -- A123Systems today announced that it will supply General Motors Corp. advanced Lithium Ion batteries optimized for plug in hybrid vehicles through its Tier 1 partner, Cobasys LLC.

A123Systems' batteries will be evaluated in prototype Saturn Green Line Vue plug-in hybrid SUVs later this year. GM recently announced its intention to produce a Vue Green Line plug-in hybrid SUV that has the potential to achieve double the fuel efficiency of any current SUV.

"We are committed to offering commercially viable, sustainable and safe alternative vehicles," said Denise Gray, GM's newly appointed director of hybrid energy storage systems. "In order to do so, we need battery suppliers that can provide us with durable and reliable batteries that help us accelerate production-ready designs. We look forward to the testing and development stages with A123Systems."

Last month, A123Systems was awarded a $15 million development contract by the United States Advanced Battery Consortium (USABC), an organization composed of DaimlerChrysler Corporation, Ford Motor Company and General Motors Corporation. USABC awarded the contract in collaboration with the U.S. Department of Energy (DOE) to optimize the A123Systems proprietary doped nanophosphate battery technology for hybrid electric vehicle applications with a focus on systems that are high-power, abuse-tolerant, long lasting and cost effective.

"We are looking forward to working General Motors and Cobasys on this program," said David Vieau, president and CEO of A123Systems. "Our work with the world's largest automaker will help validate the durability, reliability, safety and value of our battery technology and the overall market viability of alternative energy vehicles."

A123Systems' automotive-class battery technology offers numerous unique features for plug-in electric vehicles including: higher energy density than traditional lithium-ion HEV cells while having one of the highest power to weight ratio of commercially available batteries; low impedance growth even at very high charge and discharge rates; outstanding calendar life; novel design that withstands extreme shocks and vibration; excellent performance over a wide temperature range; and an intrinsically safe chemistry which is especially important in large batteries.

A123Systems will be working closely with its partner Cobasys, a joint venture between Chevron Technology Ventures LLC, a subsidiary of Chevron Corp. and Energy Conversion Devices, Inc., which will provide its expertise in battery pack design and integration to deliver a complete system as Tier 1 supplier to General Motors.

About A123Systems

A123Systems has quickly become one of the World's largest suppliers of high-power lithium-ion batteries. Based on the Company's patented nanophosphate technology, the batteries deliver previously unattainable levels of power, safety and life. Applicable to a wide range of industries, A123Systems' products allow OEMs expanded flexibility in system design, removing many traditional technology constraints. Founded in 2001, A123Systems' proprietary nanoscale electrode technology is built on initial developments from the Massachusetts Institute of Technology. For additional please visit www.a123systems.com.