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ECD/OBC ANNOUNCES AGREEMENT WITH HONDA

 TROY, Mich., Jan. 4 /PRNewswire/ -- Energy Conversion Devices, Inc. ("ECD") (OTC: ENER) and its subsidiary Ovonic Battery Company, Inc. ("OBC") today announced the signing of a development contract and a purchase agreement with Honda having a total value of $1.3 million. Honda entered into this new contract with ECD/OBC as a result of successful completion of earlier development contracts under which ECD/OBC designed and built prototype batteries for Honda.
 Under the $1.3 million agreement, ECD/OBC will design and build additional batteries for Honda. Honda is currently using Ovonic Battery technology for its electric vehicle development and commercialization program. Pursuant to this agreement, Honda will make a first payment of $300,000 immediately to be followed by a $500,000 payment in May 1994 and the remaining $500,000 in May 1995. Honda displayed Ovonic nickel metal hydride batteries together with its concept electric car at the October 1993 Tokyo Automotive Show.
 Ovonic nickel metal hydride batteries have over twice the energy density of conventional batteries, have no memory effect, and provide the necessary range, acceleration, recharge time, life span, and costs to make electric vehicles commercially viable. In addition, Ovonic nickel metal hydride batteries do not contain cadmium or lead, both environmentally hazardous substances. ECD/OBC is currently designing, building, and shipping battery packs to several automotive companies around the world for test and evaluation purposes. ECD/OBC is in the process of expanding its production facilities.
 Stanford R. Ovshinsky, President and Chief Executive Officer of ECD and Chief Executive Officer of OBC, said, "This is an important step in making our Ovonic metal hydride batteries the standard for electric vehicles on a global basis."
 ECD is a leader in the synthesis of new materials and the development of advanced production technologies and innovative products. Since its founding in 1960, ECD's research and development efforts have focused on disordered and amorphous materials. ECD has developed its Ovonic materials, production technology and products in the areas of energy, information, and synthetic materials.
 -0- 1/4/94
 /CONTACT: Stanford R. Ovshinsky, president and chief executive officer of ECD, 313-280-1900; or Subhash K. Dhar, president and chief operating officer of OBC 313-362-1750/
 (ENER HMC)


CO: Energy Conversion Devices, Inc.; Ovonic Battery Company, Inc.;
 Honda ST: Michigan IN: OIL AUT SU: CON


DC -- DE013 -- 8872 01/04/94 11:38 EST
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Publication:PR Newswire
Date:Jan 4, 1994
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