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ECD ANNOUNCES DEVELOPMENTS RELATING TO BATTERY SUBSIDIARY

 TROY, Mich., Sept. 7 /PRNewswire/ -- Energy Conversion Devices, Inc. ("ECD") (NASDAQ: ENER) announced today that it had put in place arrangements intended to formalize the various business and legal relationships between ECD and its 95-percent-owned subsidiary, Ovonic Battery Company, Inc. ("OBC"). The purpose of the new arrangements is to facilitate financing transactions being considered by OBC. OBC's business is focused on the development and commercialization of rechargeable batteries for use in consumer and commercial applications, including electric vehicles.
 The arrangements announced by ECD included an intercompany services agreement relating to the administrative and technical services currently provided by ECD to OBC, the formalization of the terms of the approximately $17 million intercompany loan outstanding from ECD to OBC, and an amendment to the existing intercompany technology license between ECD and OBC to provide for the payment of royalties to ECD based on OBC's future license and product revenues and overall financial performance. The intercompany services agreement includes an option, exercisable in the event of a change in control of ECD, to permit OBC to purchase the structures and analytical laboratory, machine division and advanced research division of ECD.
 ECD also announced that as part of the new arrangements relating to OBC, the chief executive officer of ECD and OBC, Stanford R. Ovshinsky, has entered into separate employment agreements with each company in order to clearly define his duties and compensation arrangements and to provide to each company the benefits of his management efforts and future inventions. Ovshinsky's employment agreement with ECD provides for an annual salary of $100,000, while his agreement with OBC provides for an annual salary of $150,000. Ovshinsky's OBC employment agreement additionally provides for the grant of stock options with respect to 6 percent of OBC's common stock and includes a right to vote the shares of OBC held by ECD following a change in control of ECD.
 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 amorphous and disordered materials. ECD has developed its Ovonic materials, production technology and products in the areas of energy, information and synthetic materials.
 -0- 9/7/93
 /CONTACT: Ghazaleh Koefod, corporate secretary of ECD, 313-280-1900/
 (ENER)


CO: Energy Conversion Devices; Ovonic Battery Company ST: Michigan IN: SU:

JG -- DE014 -- 9410 09/07/93 15:08 EDT
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Publication:PR Newswire
Date:Sep 7, 1993
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