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 TROY, Mich., Feb. 18 /PRNewswire/ -- Energy Conversion Devices, Inc. (ECD) (NASDAQ: ENER) today reported continued profitable results for the three months ended Dec. 31, 1991, as well as for the six months ended Dec. 31, 1991. This marks the company's third consecutive profitable quarter.
 Product sales more than doubled from $1,010,000 for the three months ended Dec. 31, 1990, to $2,328,000 for the three months ended Dec. 31, 1991. Net income was $448,000 for that period, compared to a net loss of $2,176,000 for the three months ended Dec. 31, 1990. In addition, second-quarter revenues from business agreements increased by more than 350 percent from $751,000 for the three months ended Dec. 31, 1990, to $3,409,000 for the three months ended Dec. 31, 1991.
 Three Months Six Months
 Ended Dec. 31, Ended Dec. 31,
 1991 1990 1991 1990
 (in thousands) (in thousands)
 Product Sales $ 2,328 $ 1,010 $ 4,213 $ 1,951
 Revenues from
 business agreements 3,409 751 4,924 2,479
 Other 179 524 399 1,022
 TOTAL REVENUES $ 5,916 $ 2,285 $ 9,536 $ 5,452
 Operating Expenses $ 5,468 $ 4,461 $10,590 $ 8,808
 Contingent Promissory
 Note (adjustment) --- --- (2,884) ---
 TOTAL EXPENSES $ 5,468 $ 4,461 $ 7,706 $ 8,808
 Net Income (Loss) $ 448 $(2,176) $ 1,830 $(3,356)
 Net Income (Loss)
 Per Share
 (in dollars) $ .00 $ (.35) $ .21 $ (.53)
 Net income for the three months ended Dec. 31, 1991, was principally a result of increased revenues from product sales, including machine- building activity, and from agreements related to the Ovonic nickel metal hydride batteries for both consumer applications and electric cars with Hyundai Motor Company and another international automobile manufacturer. The net income for the six months ended Dec. 31, 1991, resulted principally from a $2,884,000 non-recurring adjustment to the Contingent Promissory Note liability.
 Currently, ECD is negotiating and discussing new business, licensing and financing agreements to expand its operations. ECD will need to conclude some of these agreements in order to continue its operations at present levels beyond mid-March 1992.
 Commenting on ECD's improved results, company President and Chief Executive Officer Stanford R. Ovshinsky underscored the fact that recent improvement in operations in part reflects the initiation of the company's planned commercialization of a number of products. He stated that "By building on ECD's basic developments in energy and information, ECD and its business partners are now in the process of scaling up their production to achieve commercial volume which ECD believes will allow it to reap the benefits of its investments in its technology."
 Ovshinsky illustrated his point by reporting that United Solar Systems Corp., ECD's U.S. photovoltaic joint venture with Canon Inc., is continuing to expand by establishing a new solar module assembly plant and an additional marketing facility.
 Other significant developments include:
 -- ECD's proprietary Ovonic metal hydride batteries are becoming a source of license and royalty revenues.
 -- ECD's subsidiary, Ovonic Battery Company, is expanding its manufacturing facility to provide negative electrode materials, powders and specialized proprietary battery products to licensees and various automotive companies.
 -- The improved results from operations include increased sales from ECD's Machine Division which recently received a new $400,000 contract to design and build new deposition equipment.
 -- It is anticipated that current negotiations with the United States Advanced Battery Consortium when concluded would benefit both ECD and Ovonic Battery Company as well as the emerging electric vehicle industry.
 Ovshinsky also noted that the improved results pushed ECD's net worth to more than $2 million which is substantially above the NASD's new net worth requirements for companies whose securities are traded on the NASDAQ.
 Ovshinsky noted recent progress at OIS Optical Imaging Systems, Inc. (OIS), which announced that it has been awarded a contract for $10,250,000 to develop and deliver active matrix liquid crystal displays (AMLCDs) for the U.S. Air Force F-22 Advanced Tactical Fighter Program. OIS said that it will develop and deliver the color AMLCDs during a three-year development and prototype program. The F-22 is a low- observable tactical fighter aircraft that will be the United States Air Force's front line defense aircraft in the next century. The F-22 is being developed by a team headed by Lockheed Aeronautical Systems and includes, among others, Lockheed Sanders, Inc., OIS and Kaiser Electronics.
 On Jan. 30, 1992, OIS also announced that it had signed a two-year contract worth approximately $2,400,000 with Science Applications International Technology of San Diego to develop AMLCDs to be used in avionics applications.
 OIS was founded by ECD in 1984 and now it is an affiliate of Guardian Industries Corporation (Guardian), a Northville, Mich.-based global manufacturer of flat glass and glass products. OIS became an affiliate of Guardian following Guardian's November 1991 investment of $10,500,000. Guardian has stated that its investment in OIS is a reflection of its belief that the OIS flat-panel display technology has great potential in the military, avionic and automotive fields. OIS develops and manufactures flat-panel displays using active matrix liquid crystal technology. OIS is the only AMLCD manufacturer in the United States that is in active production and its principal customers purchase OIS products designed for the severe environments in which military and avionic applications operate.
 In February 1992, ECD sold a private investor 1,275,000 shares of its OIS common stock for $1.06 per share. ECD used the proceeds of the sale to repay $750,000 of the $1 million note due to ANR Energy Conversion Company and for other corporate purposes. After completion of this transaction, ECD owns 5,825,000 shares of OIS common stock, or 22 percent of the currently outstanding shares. ECD will realize a gain on this sale of approximately $1,100,000 in the quarter ended March 31, 1992. ECD plans to sell the balance of its shares in OIS to meet obligations under a Contingent Promissory Note presently due March 3, 1992, and pay the balance of the note to ANR.
 Ovshinsky also noted that since September 1991, outstanding warrants, options or convertible securities exercisable or exchangeable for a total of approximately 1,500,000 shares of ECD common stock have expired or will soon expire. This substantially reduces the potential dilution to ECD shareholders from new issuances of ECD stock.
 Troy-based ECD is the pioneer in amorphous and synthetic materials technology. It operates through joint ventures, manufacturing, marketing and licensing of its proprietary products in the fields of energy, information and synthetic materials. The company's work is based on the intellectual property and technology that it and its subsidiaries have developed, and its activities are international with operations in the United States, Asia and India. ECD operates its energy activities in Russia through its Sovlux joint venture with Kvant, a major industrial and energy enterprise.
 ECD's photovoltaic and battery products are environmentally safe and address such critical international problems as reliance on fossil fuels and environmental problems such as atmospheric pollution, protecting the ozone layer, reducing hazardous waste and greenhouse effect.
 -0- 2/18/92
 /CONTACT: Stanford R. Ovshinsky, president and CEO, or Nancy M. Bacon, vice president of finance and treasurer, 313-280-1900, both of Energy Conversion Devices/
 (ECD) CO: Energy Conversion Devices, Inc. ST: Michigan IN: OIL SU: ERN

SB -- DE014 -- 9917 02/18/92 12:00 EST
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Date:Feb 18, 1992

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