ELECTROSOURCE ANNOUNCES RECEIPT OF LETTER OF INTENT
ELECTROSOURCE ANNOUNCES RECEIPT OF LETTER OF INTENT AUSTIN, Texas, Feb. 26 /PRNewswire/ -- Electrosource, Inc.
(NASDAQ: ELSI) announced yesterday receipt of a letter of intent from the Electric Power Research Institute (EPRI) of Palo Alto, Calif. The letter discloses commencement of negotiations for an agreement between EPRI and ELSI, which will establish a five-year, multi-phase program to commercialize ELSI's proprietary advanced lead acid battery technology for use in powering electric vehicles.
Broad terms of the agreement contemplate creation of a technology research, development and commercialization venture, the operational funds which would be supplied through EPRI and the proprietary technology and physical resources which would be provided by ELSI. Successful completion of the venture's research and development and pilot production phases would be followed by volume production and sales of the batteries for use in the merging electric vehicle market. EPRI is a California-based research and technology commercialization organization funded by electric utility companies. Approximately 70 percent of such companies in the United States are members of EPRI. According to Jack Guy, EPRI's customer systems division's manager for Technology Commercialization, "The electric vehicle application appears to be an excellent entry point for the Electrosource technology. In laboratory testing, advanced lead acid batteries produced by Electrosource exhibit specific energy, specific power and cycle life performance substantially exceeding that of other lead acid batteries. Based on favorable recommendations resulting from our technical evaluation of the Electrosource effort, EPRI believes that the Electrosource technology shows great potential for meeting electric vehicle battery requirements in the near term." Benny E. Jay, president of Electrosource, said, "We are delighted at EPRI's confidence in the advanced lead acid battery technology developed by Electrosource, and that they are taking the lead in securing the substantial funds required for its commercialization. Assuming our negotiations lead to a definitive agreement and planned operations are fully funded, we anticipate a volume production decision within 24 months." Electrosource is a publicly traded company, headquartered in Austin. The company's principal business is developing advanced lead acid batteries for commercial application. -0- 2/26/92 /CONTACT: Audrey Dearing of Electrosource, 512-445-6606/ (ELSI) CO: Electrosource Inc. ST: Texas IN: SU:
TS -- NY023 -- 2706 02/26/92 10:11 EST
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|Date:||Feb 26, 1992|
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