Press Release

12/20/01
ChevronTexaco, Energy Conversion Devices Team to Commercialize Solar, Hydrogen Technologies

SAN FRANCISCO, Dec. 20, 2001 – ChevronTexaco (NYSE: CVX) announced today that its energy services subsidiary, Chevron Energy Solutions, LP (Chevron ES), is collaborating with a pioneering technology and manufacturing affiliate, Energy Conversion Devices, Inc. (ECD) (NASDAQ: ENER), to broaden the commercial application of flexible solar electric roofing materials and high-performance nickel-metal hydride (NiMH) batteries, as well as hydrogen storage systems and fuel cell technologies.

ChevronTexaco holds a 20 percent equity interest in ECD as a result of investments by Texaco in 2000 and 2001, and maintains three 50-50 joint ventures with ECD.

Under a series of teaming agreements, Chevron ES and ECD will work with Bekaert ECD Solar Systems LLC, a joint venture between N.V. Bekaert S.A. and United Solar Systems Corp. (an ECD affiliate), and ChevronTexaco Ovonic Battery Systems LLC, a joint venture between ChevronTexaco and Ovonic Battery Company, Inc. (an ECD subsidiary), on commercial sales projects involving integrated energy solutions that incorporate these technologies cost-effectively. Project offerings will be comprehensive, encompassing product design, installation, financing, operations and system maintenance, with the objective of building long-term customer relationships.

Initially, Bekaert ECD Solar Systems, Chevron ES and ECD will focus on projects that include Building Integrated Photovoltaic (BIPV) roofing systems for commercial and industrial customers. Ovonic BIPV systems produce electricity in sunlight and on cloudy days using a unique flexible and durable thin-film technology that is manufactured and installed as a building-integrated roofing material. United Solar Systems and Bekaert ECD Solar Systems manufacture, assemble and sell BIPV systems worldwide under the UNI-SOLAR® brand.

High energy density NiMH batteries, patented and licensed by Ovonic Battery Company, are now used in consumer electronics, electric vehicles and hybrid electric vehicles and have shown promise in stationary applications as a safe, low-maintenance electric storage technology. Chevron ES and ChevronTexaco Ovonic Battery Systems will work to commercialize new stationary applications, focusing on emergency back-up and remote power systems for institutional, industrial and commercial markets. Concurrently, ChevronTexaco Ovonic Battery Systems is working to expand the production of NiMH batteries for use in conventional, electric and hybrid electric vehicles, including 36/42 volt systems.

Meanwhile, ChevronTexaco's two other joint ventures with ECD, ChevronTexaco Ovonic Hydrogen Systems LLC and ChevronTexaco Ovonic Fuel Cell Company LLC, are developing, respectively, advanced hydrogen systems, which store hydrogen reversibly in stable, solid metal hydrides, and regenerative fuel cells, which use non-noble metal catalyst materials to produce electricity from hydrogen. Over the longer term, Chevron ES will work with both joint ventures to help commercialize these technologies.

“This collaboration is a prime example of ChevronTexaco's commitment to develop clean, efficient, environmentally-benign energy sources,” said Jim Davis, president of Chevron Energy Solutions. “In the coming decade, we expect that solar energy and hydrogen – both abundant in nature – will play a more significant role in the world economy. The projects we undertake with ECD are a major step toward that future.”

In a joint statement, ECD's president and CEO, Stanford R. Ovshinsky, and Robert C. Stempel, Chairman, also expressed their support for the team. “ChevronTexaco has superb talent, excellent resources and a strong reputation in the market – qualities that will help us move these technologies forward as a complete system. We're very optimistic about the future of this collaboration.”

San Francisco-based Chevron Energy Solutions is a subsidiary of ChevronTexaco, one of the world's largest and most competitive integrated energy companies. With 12 offices nationwide, Chevron Energy Solutions partners with businesses and institutions to lower their overall energy costs in ways that improve their financial performance. The company provides comprehensive, customized solutions that help customers use less energy, pay less for energy, and ensure reliable, high quality power for critical operations. Its customers include major companies in the retail products manufacturing and energy industries; schools, colleges, cities and government agencies; and high-tech and other businesses that require uninterrupted power.

ECD is the leader in the synthesis of new materials and the development of advanced production technology and innovative products. It has pioneered and developed enabling technologies leading to new products and production processes based on amorphous, disordered and related materials, with an emphasis on advanced information technologies and alternative energy, including photovoltaics, fuel cells, hydride batteries and hydride storage materials capable of storing hydrogen in the solid state for use as a feed stock for fuel cells or internal combustion engines or as an enhancement or replacement for any type of hydrocarbon fuel. ECD designs and builds manufacturing machinery that incorporates its proprietary production processes, maintains ongoing research and development programs to continually improve its products and develops new applications for its technologies. ECD holds basic patents in these fields.

For more information about Chevron Energy Solutions and Energy Conversion Devices, please visit our web sites at www.chevronenergy.com and www.ovonic.com.

This press release may contain forward-looking statements within the meaning of the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are based on certain assumptions which ChevronTexaco and ECD, as of the date of this release, believe to be reasonable and appropriate. ChevronTexaco and ECD caution, however, that the actual facts and conditions that may exist in the future could vary materially from the assumed facts and conditions upon which such forward-looking statements are based.