ENERGY CONVERSION DEVICES AND HARDING ENERGY SYSTEMS
ANNOUNCE NEW BATTERY AGREEMENT
TROY, Mich., Nov. 15 /PRNewswire/ -- Energy Conversion Devices, Inc. (NASDAQ: ENER) ("ECD") and its subsidiary, Ovonic Battery Company, Inc. ("OBC"), announced today that ECD/OBC and Harding Energy Systems, Inc. ("Harding") entered into a royalty-bearing license agreement under ECD's environmentally safe Ovonic battery technology in August 1991.
ECD/OBC's Ovonic batteries, unlike other batteries, contain no toxic materials, have over twice the energy of conventional nickel-cadmium batteries, have no memory effect and can be made in any size ranging from button cells to batteries for energy storage for utilities.
Under this agreement, ECD/OBC have granted non-exclusive rights to Harding for the manufacture of Ovonic hydride consumer portable batteries in Michigan, Indiana and Illinois, non-exclusive, worldwide sales rights for the batteries for consumer and portable medical/health- care industry applications only and non-exclusive rights to use and sell batteries in North, Central and South America for consumer non-medical industry applications.
The license agreement also provides for payment to OBC of $1,500,000. Of this amount, $250,000 was paid in September 1991, $250,000 is due by December 1991, $500,000 upon commencement of commercial production by Harding and the balance upon the attainment of the manufacture of 20 million cells per year. Harding has also granted OBC royalty-free, non-exclusive, worldwide rights to improvements in OBC's battery technology developed by Harding.
High energy density Ovonic batteries, which are based on proprietary hydride materials technology, are also being scaled up for use in electric vehicles. ECD/OBC have secured development contracts from and are in business negotiations with various automotive companies throughout the world.
ECD, based in Troy, is the pioneer in amorphous and synthetic materials technology. ECD licenses technology and manufactures and sells products in the fields of energy, information and synthetic materials based upon technology ECD and its subsidiaries have developed. ECD's products address such environmental problems as reducing hazardous waste, atmospheric pollution, protecting the ozone layer and the greenhouse effect.
Harding, a new Grand Haven, Mich., corporation, designs, markets and distributes environmentally conscious products including batteries, energy-efficient lighting, and photovoltaic related systems. Harding's engineering team is geared to service the needs of manufacturers designing cordless devices for the next century in a manner that recognizes the importance of the world's natural resources.
Harding's interdisciplinary management team includes prominent executives from the fields of medicine, education, cable communications, government and construction. In addition, Harding announced the appointment of William E. Orabone Jr., formerly of Ovonic Battery Company, to serve as vice president of manufacturing and engineering. Larry R. Deetjen, president of Harding, emphasized that this decision reinforces the intent of Harding to develop a strong and unique relationship with its business partner, ECD, in Michigan.
/CONTACT: Stanford R. Ovshinsky of Energy Conversion Devices and Ovonic Battery Company, 313-280-1900; or Larry R. Deetjen of Harding Energy Systems, 616-847-0989/
(ENER) CO: Energy Conversion Devices; Ovonic Battery Company; Harding Energy
Systems ST: Michigan IN: SU: LIC JG-ML -- DE017 -- 1478 11/15/91 11:05 EST