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Technology Stocks : ULBI..Ultralife Batteries -- Ignore unavailable to you. Want to Upgrade?

To: webpilot who wrote (315)	12/8/1998 10:30:00 AM
From: Brander	Read Replies (2) \| Respond to of 522

Tuesday December 8, 10:00 am Eastern Time Company Press Release SOURCE: Ultralife Batteries, Inc. Ultralife Batteries, Inc. Enters Into $40 Million Venture to Produce Advanced Solid Polymer Batteries in Far East NEWARK, N.Y., Dec. 8 /PRNewswire/ -- Ultralife Batteries, Inc. (Nasdaq: ULBI - news) today announced that it has entered into a venture with the PGT Energy Corp. (PGT), together with a group of investors, to produce Ultralife's advanced solid polymer rechargeable batteries in Taiwan. The new venture, Ultralife Taiwan Inc. (UTI), will be capitalized at US$40 million. Ultralife will provide UTI with its proprietary solid polymer battery technology and US$8.75 million in cash -- which will be generated by selling 700,000 shares of Ultralife common stock to UTI at US $12.50 per share. Ultralife will be UTI's largest shareholder, with 47% ownership, and hold half of the seats on UTI's board of directors. Ultralife will also receive the first US$2.5 million of profit distributions. PGT and the group of investors will fund UTI with US$21.25 million in cash and hold the remaining seats on the board. Formal incorporation and initial capitalization of the venture is anticipated within 60 days. The target launch date for manufacturing operations is mid-calendar year 2000. The UTI facility is expected to be located in Taiwan's prestigious Science Park. The Taiwanese government provides a number of significant benefits for the companies it selects for this location, including possible tax abatements, reduced tax levels, and access to special grants and low-interest loans. Bruce Jagid, Ultralife Chairman and Chief Executive Officer, stated: ''Our partners' technological manufacturing expertise and strong financial resources make them an ideal fit for Ultralife. The establishment of UTI in Taiwan also fits perfectly into Ultralife's corporate strategy. We anticipate that this venture will significantly increase our solid polymer battery production capacity. The high-technology work force in Taiwan is skilled and educated, and is expected to result in cost-effective manufacturing operations. Being situated in Taiwan places UTI in close proximity to a wide range of electronics companies that purchase significant quantities of rechargeable batteries. Taiwan's computer manufacturers, for example, produce more than half of the world's portable computers. In addition, UTI will have unique access to Asian markets, particularly the rapidly growing consumer electronics market in the People's Republic of China.'' The investors in PGT control the Phoenix Group, a high-technology electronics conglomerate based in Hsinchu, Taiwan. The Phoenix Group includes Phoenix Silicon International Corporation, a silicon wafer manufacturer, and Phoenix Precision Technology Corporation, a manufacturer of semi-conductor substrates. Ultralife Batteries Inc. develops, manufactures and markets a wide range of advanced-technology lithium batteries. In fiscal 1998, the Company made the world's first commercial shipments of solid polymer rechargeable batteries. Key customers include Boeing, Energizer, First Alert, Fymetics, Kidde, Lockheed-Martin, Radio Shack, and the national defense agencies of the United Kingdom and the United States. Detailed information on Ultralife is available at the Company's web site, ulbi.com. This document contains forward-looking statements based on current expectations. Actual results could differ materially from those projected as a result of various risk and uncertainties, including continued acceptance of and demand for the company's products, and changes in customers' purchasing plans. A more detailed description of such uncertainties is contained in the Company's filings with the Securities and Exchange Commission, such as the Company's Annual Report on Form 10-K for the fiscal year ended June 30, 1998. SOURCE: Ultralife Batteries, Inc.