Exide Corporation Acquires Majority Interest in Potential
`Breakthrough' Battery Technology
Source URL: biz.yahoo.com
Thursday December 23, 9:31 am Eastern Time
Company Press Release
SOURCE: Exide Corporation
Exide Corporation Acquires Majority Interest in Potential
`Breakthrough' Battery Technology
READING, Pa., Dec. 23 /PRNewswire/ -- Exide Corporation (NYSE: EX - news), a global leader in the business of stored electrical energy, today
announced it has acquired a controlling interest in Lion Compact Energy, a privately held company conducting research in dual-graphite battery
technology that could dramatically advance the search for cleaner, less expensive and more efficient batteries.
The intent to acquire 55 percent of the company was previously announced by Exide Corporation on September 27, 1999. Under the terms of the
acquisition, Exide Corporation paid $3.5 million in cash upon closing and could pay $11.5 million, plus certain royalty fees, over the next several
years depending upon the performance of Lion Compact Energy and its product. The Exide share of the company was purchased from the
Michigan Molecular Institute, a non-profit research institute in Midland, MI.
Lion Compact Energy has thus far produced several prototype batteries using graphite in different forms as the electrode material. Lion Compact
Energy estimates that, in full production, its graphite battery will produce more than three times the power of today's most advanced production
batteries. Additionally, Lion Company Energy estimates the new batteries will occupy far less space at about half the weight and at about one-third
the cost of today's most advanced production batteries.
Robert A. Lutz, Chairman and Chief Executive Officer at Exide, said, ``We are extremely pleased to have completed this acquisition. As we've
said, what LCE has thus far accomplished is one of the most compelling stories in the history of advanced battery technology. We are extremely
excited about dual-graphite's potential and the benefits it could bring to our company, the users of stored electrical energy, and the global
environment. In the spring of next year we expect to be able to demonstrate a prototype dual graphite battery, in a smaller application, to
technology media and investors around the country.'
The initial applications to be pursued for the battery include: communications satellites, standby power for utility companies, laptop computers
and certain military equipment. Its use in other devices would follow, and could include wheel chairs, motorcycles, replacement for lead-acid
batteries in cars and trucks and, potentially, all-electric vehicles.
William Orabone, President of Lion Compact Energy, said, ``We are obviously pleased to have the acquisition finalized and we look forward to
commercially developing what is clearly the best advanced battery technology available.'
Lutz added, ``While returns on this kind of technological investment are not immediate, our right to control the marketing and sales of this
technology demonstrates our determination to be in the forefront of stored electrical energy development on a global basis.'
Exide Corporation, with annual revenues of approximately $2.4 billion and operations in 19 countries, is the world's largest manufacturer of
automotive and industrial lead-acid batteries. Further information about Exide's businesses and products is available at www.exideworld.com.
Certain statements in this press release may constitute forward-looking statements as defined by the Securities Litigation Reform Act of 1995. As
such, they involve known and unknown risks, uncertainties and other factors which may cause the actual results of the Company to be materially
different from any results expressed or implied by such forward-looking statements. These risks and uncertainties could include the performance
and/or consumer acceptance of any new or existing product, delays in bringing new products to market and other factors. For a description of the
risks associated with Exide's business as a whole, please refer to the appropriate sections of the company's most recent 10Q and 10K filings.
SOURCE: Exide Corporation |
