JOINT PRESS RELEASE
Issued by Texaco Ovonic Battery Systems LLC, a 50-50 joint venture company between a unit of ChevronTexaco Technology Ventures and Ovonic Battery Company, Inc., a subsidiary of Energy Conversion Devices, Inc.
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Dayton, Ohio, Oct. 29, 2002 -- Texaco Ovonic Battery Systems LLC, a 50-50 joint venture between a unit of ChevronTexaco Corp. and a subsidiary of Energy Conversion Devices, Inc. (NASDAQ:ENER), will break ground for a new multimillion-dollar battery production facility in Springboro, Ohio on Tuesday, October 29, 2002.
The Springboro plant, at 170,000 square feet and with new automated manufacturing equipment, is more than twice the size of the current production facility in Kettering. It is expected to double the production capacity of advanced Texaco Ovonic Battery Systems nickel metal hydride (NiMH) batteries."I am pleased with Texaco Ovonic Battery Systems' decision to continue its operation in Ohio by building its multimillion dollar, state-of-the-art battery manufacturing plant in Springboro," Governor Bob Taft said. "We have a long-term commitment to establish Ohio as an economic leader in the 21st Century, while at the same time preserving the environment. We believe that Texaco Ovonic Battery Systems will help us achieve these goals."
Robert C. Stempel, Chairman and CEO of Texaco Ovonic Battery Systems, said, "This is an important step for Texaco Ovonic Battery Systems. The Springboro plant will enable us to address and provide for the battery needs of both the transportation and stationary markets. We look forward to building a world-class, competitive business and to offering the Ovonic nickel metal hydride batteries to the global automotive and nonautomotive markets. We have the basic patents in nickel metal hydride battery technology."
Tom Neslage, President and COO of Texaco Ovonic Battery Systems, said, "The Springboro plant, which is expected to become functional in April 2003, will replace the Kettering plant. We, at Texaco Ovonic Battery Systems, are committed to offering value, reliability, and quality to our customers and look forward to expanding the market for our proprietary nickel metal hydride batteries."
The advanced Texaco Ovonic Battery Systems NiMH batteries provide more than twice the energy and life cycle of conventional lead acid batteries, are maintenance free and are environmentally benign. NiMH batteries are the enabling technology for electric and hybrid electric vehicles to meet the requirements for next-generation fuel-efficient vehicle applications. Other applications include telecommunications, uninterruptible power systems (UPS) and distributed generation segments of stationary markets.
Employment level at the Ohio plant -- represented by the International Union of Electrical Workers -- is expected to reach nearly 200 people during the next few years.
ECD is the leader in the synthesis of new materials and the development of advanced production technology and innovative products. It has invented, 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 feedstock 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 the basic patents in its fields. ECD's web site address is http://www.ovonic.com.
ChevronTexaco Corp. is an integrated global energy company participating in virtually all aspects of the global energy business. It is the second-largest U.S.-based energy company and the fifth largest in the world, based on market capitalization. More than 53,000 ChevronTexaco employees work in approximately 180 countries around the world, producing oil and natural gas and marketing fuels and other energy products.
This press release may contain a number of forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. In particular, any statements made concerning ChevronTexaco's and ECD's expected performance and financial results in future periods are based upon ChevronTexaco's and ECD's current expectations and beliefs and are subject to a number of known and unknown risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. The following factors known to ChevronTexaco and ECD, among others, could cause their actual results to differ materially from those described in the forward-looking statements: inaccurate scientific data; mechanical, chemical and technological failures; decreased demand for alternative fuels and other products; above or below-average product and technology demands; worldwide and industry economic conditions; higher costs, expenses and interest rates; the outcome of pending and future litigation and governmental proceedings; continued availability of financing; and strikes and other industrial disputes. In addition, you are encouraged to review ChevronTexaco's and ECD's latest reports filed with the SEC, including but not limited to ChevronTexaco's and ECD's Annual Report on Form 10-K, which describe a number of additional risks and uncertainties that could cause actual results to vary materially from those listed in the forward-looking statements made in this press release.