Conversion Devices for Solid Hydrogen Storage and Refueling System

by ECD Ovonics

"We are pleased that the Army is interested in the hydrogen economy, among other key missions they are driving," said Stanford R. Ovshinsky, ECD Ovonics' president and CEO, and Texaco Ovonic Hydrogen Systems' president. "Our ongoing objective is to provide the enabling technologies for a hydrogen economy. Ovonicı solid hydrogen onboard storage and refueling technology are the latest milestones in bringing alternative energy solutions like this to commercialization. By providing the Army with the refueling capability necessary for its off-road fuel cell vehicles, we expect to demonstrate the viability of our solid hydrogen technology in the real world."

Rochester Hills, Mich., October 20, 2003 -- Energy Conversion Devices, Inc. (ECD Ovonics) (NASDAQ: ENERE), the pioneer in hydrogen-based energy solutions, today announced that the Company has been awarded the first phase of funding from the U.S. Army Tank-Automotive and Armaments Command (TACOM) to partner with the Army's National Automotive Center (NAC). The $500,000 total contract will be applied towards the development by Texaco Ovonic Hydrogen Systems (TOHS) of a transportable solid hydrogen storage and refueling system for hydrogen fuel cell powered off-road military vehicles. ECD Ovonics will perform the work under its service agreement with TOHS. This contract comes on the heels of ECD Ovonics' and TOHS' recent unveiling of a low pressure, solid hydrogen fuel storage system showcased in a modified Toyota Prius.

"By partnering with solid state hydrogen storage technology leaders like ECD Ovonics and Texaco Ovonic Hydrogen Systems, who have developed hydrogen storage solutions, we're able to address challenges faced by the military, such as the safe, transportable refueling of off-road fuel cell vehicles," said Dennis Wend, Executive Director of the National Automotive Center.

Within the scope of the project, the Ovonic(tm) transportable hydrogen storage system will store at least 10 kg of hydrogen in a safe, compact, low-pressure solid form. The storage systems will be used to refill the Army's off-road fuel cell vehicles' onboard storage vessels at least twice per day with 1.7 kg of hydrogen in under 10 minutes. The initial installation of the system will be at the TARDEC facilities in Warren, Mich., and will be demonstrated at industry and military trade events thereafter.

"We are pleased that the Army is interested in the hydrogen economy, among other key missions they are driving," said Stanford R. Ovshinsky, ECD Ovonics' president and CEO, and Texaco Ovonic Hydrogen Systems' president. "Our ongoing objective is to provide the enabling technologies for a hydrogen economy. Ovonicı solid hydrogen onboard storage and refueling technology are the latest milestones in bringing alternative energy solutions like this to commercialization. By providing the Army with the refueling capability necessary for its off-road fuel cell vehicles, we expect to demonstrate the viability of our solid hydrogen technology in the real world."

Ovonic(tm) solid-state hydrogen storage systems can be used for the storage of hydrogen fuel tanks onboard vehicles and at refueling stations, allowing for safe and easy refueling of hydrogen-fueled vehicles. As a result, this compact, solid hydrogen storage technology and refueling system promises to help commercialization efforts of a new generation of alternative energy vehicles.

ECD Ovonics has been a major proponent of the hydrogen economy vision since the Company's founding in 1960. Based on Ovshinsky's inventions, ECD Ovonics holds the basic patents on the processes and technologies needed for the development of numerous hydrogen-based technologies ranging from Ovonic(tm) nickel metal hydride batteries to solar panels, to fuel cells -- all required to turn the hydrogen economy vision into reality.

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About ECD Ovonics:
ECD Ovonics 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 in the fields of energy and information leading to new products and production processes based on amorphous, disordered and related materials. ECD Ovonics' proprietary advanced information technologies include Ovonic(tm) phase-change electrical memory, Ovonic(tm) phase-change optical memory and the Ovonic(tm) Threshold Switch. The Company's portfolio of alternative energy solutions includes thin-film amorphous solar cells, modules, panels and systems for generating solar electric power; NiMH batteries; 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; and fuel cell technology. ECD Ovonics 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 Ovonics holds the basic patents in its fields. More information on ECD Ovonics is available on http://www.ovonic.com.

About Texaco Ovonic Hydrogen Systems:
Texaco Ovonic Hydrogen Systems LLC is a 50-50 joint venture between ECD Ovonics and ChevronTexaco Technology Ventures L.L.C., a unit of ChevronTexaco Corporation, formed to develop metal hydride hydrogen storage systems for emerging markets. These markets include fuel cell-powered vehicles, stationary and portable power systems, and lead-acid battery replacements. Texaco Ovonic Hydrogen Systems, headquartered in Rochester Hills, Michigan, is testing both large and small hydrogen systems for a variety of applications. More information on TOHS is available on http://www.txohydrogen.com.

This 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 assumptions which ECD Ovonics, as of the date of this release, believes to be reasonable and appropriate. ECD Ovonics cautions, 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.
Contacts:
For media information, please contact:
Nadia Jamshidi
McGrath/Power Public Relations
408.727.0351
nadiaj@mcgrathpower.com


For investor information, please contact:
Ghazaleh Koefod
ECD Ovonics, Investor Relations
248.293.0440
investor.relations@ovonic.com
For Further Information:

• ECD Ovonics Website

• Texaco Ovonic Hydrogen Systems Website

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