Texaco And Energy Conversion Devices, Inc. Form Fuel Cell Joint Venture

Texaco Energy Systems, Inc. (TESI) and Energy Conversion Devices, Inc. (ECD) -NASDAQ: ENER- today announced the formation of Texaco Ovonic Fuel Cell Company, L.L.C, a 50-50 joint venture to further develop and advance the commercialization of the Ovonic Regenerative Fuel CellTM.

Under the terms of the joint venture agreement, ECD will provide proprietary technology and its fuel cell development expertise, while TESI will provide additional technological support and funding for development work and initial product launch. Work under this joint venture will commence immediately and the funding for initial product and market development is estimated to exceed $40 million.

Commenting on the announcement, William M. Wicker, Texaco Inc. Senior Vice President said, “The Ovonic Regenerative Fuel CellTM represents the kind of important advanced energy technology in which Texaco intends to be a leader. This joint venture not only moves us closer to that objective, but also builds upon our relationship with ECD and the strategic investment we made in the company earlier this year.”

In a joint statement, Stanford R. Ovshinsky, ECD President and CEO, and Robert C. Stempel, ECD Chairman, said, “This agreement is an important step forward in the advancement of our fuel cell technologies and further demonstrates how the two companies are working together to develop and commercialize clean, efficient energy solutions for an evolving energy economy.”

Troy-based ECD is a leading developer of advanced energy technologies, including hydrogen storage, advanced batteries, thin film photovoltaics and fuel cells. The Ovonic Regenerative Fuel CellTM is being developed for use in the full range of commercial applications of fuel cells, and has the potential to deliver high efficiency levels, a wide operating-temperature range, and instant start capability. Its ability to store energy during braking makes it ideal for vehicle applications. ECD’s unique, low-cost, proprietary non-noble metal catalyst materials technology gives the Ovonic Regenerative Fuel CellTM significantly superior performance and lower costs as compared to other technologies, such as proton exchange membrane (PEM) fuel cells.