Omnibus Deal Covers Vehicles, Defense, and Commercial Applications
NEW CASTLE, Pa., April 13 /PRNewswire-FirstCall/ -- Axion Power
International Inc (OTC:AXPW) (BULLETIN BOARD: AXPW) , announced
today that it has signed a definitive Memorandum of Understanding
for a multi-year, global supply relationship with Alpharetta,
GA-based Exide Technologies (NASDAQ: XIDE) for the purchase of
Axion PbC(R) batteries and other Axion Technologies(TM). Axion is a
developer of advanced batteries and energy storage products that
incorporate patented lead carbon battery PbC Technology(TM). Exide
Technologies is a global leader in stored electrical energy
solutions. According to the terms of the agreement, three
consecutive phased purchase- and test-periods will commence
immediately, with Axion supplying an escalating number of batteries
to Exide on a monthly basis. The first two phases will span 18
months and if successful the parties will move to the final 2
phases of the agreement. The quantity of the products supplied will
need to achieve certain defined milestones, commensurate with what
the market potentials could be, over the remaining 2.5 year period
of the agreement if exclusivity is to be maintained. Shipments
delineated under the agreement would begin in Phase I, which is
scheduled to last 10 months and would ramp up at each phase point,
assuming successful testing. No further details on anticipated
shipments and schedules were released. The agreement will make
Exide Axion Power's principal battery original equipment
manufacturer (OEM) customer. Axion will still retain the limited
ability to market its PbC battery to one other lead-acid battery
manufacturer under an existing agreement and Axion will be able to
sell all its products to current customers, and into certain large
potential markets on which they have chosen to concentrate. If
sales increase to a point where Axion cannot provide the quantities
required, Axion agrees to grant a license and to sell certain
materials to Exide to make a co-branded product. Axion expects its
capacity to be exceeded, but plans to produce its proprietary
carbon electrode for use in the batteries, whether the batteries
are manufactured by Axion or Exide. This is in keeping with Axion's
long-stated business plan of "providing carbon electrodes to
lead-acid battery manufacturers to make their products better." The
agreement envisions Fields of Use for the Axion Technologies to
include batteries for automobiles and light trucks (OEM and
aftermarket); hybrid electric vehicles (HEVs): plug-in hybrid
electric vehicles (PHEVs); electric vehicles (EVs); fuel-cell
vehicles; marine, military, and heavy-duty transport applications;
off-road machines; power-sport vehicles; and lawn and agricultural
vehicles. It also foresees major applications for battery back-up;
power quality; load leveling and peak shaving; storage for wind and
solar; and storage for network grid applications. "Exide is one of
the largest battery manufacturers and recyclers in the world, and
the Company's recognition of the 'game changing' potential of
Axion's products - including the PbC Battery, PbC Technology,
embossed grid technology, carbon additive technology and other
technologies that we develop in partnership with Exide �??
underscores their appreciation of our carbon expertise and research
and development history. Together, we believe we can compete
effectively with other battery chemistries that have dominated
today's headlines," commented Tom Granville, Axion Power
International's Chief Executive Officer. "Whether the market is
electric vehicles, defense applications, utility and industrial
energy storage needs or enablement of renewables including wind and
solar, we believe that Axion's lead-carbon products present one of
the best potential solutions. Axion's developing and maturing
technology, combined with Exide's highly respected research and
development team and proven ability to market and distribute
batteries globally for transportation and industrial energy
applications, provides all the necessary ingredients for winning
big in the very substantial markets we target." Axion Power has
developed several technological improvements to traditional
lead-acid batteries, and owns numerous patents covering them. Its
best-known development is the PbC battery, which substitutes
activated carbon for lead on the negative electrode of an otherwise
traditionally manufactured absorbed glass mat (AGM) lead-acid
battery. "We believe 2009 is a year when real attention - and
dollars - are turning to advanced chemistries and alternative
energy sources. Certainly, our new collaboration with Axion Power
strengthens Exide's ability to develop and provide additional
products and technologies that can shape the world's changing
energy storage systems," said Dr. Paul Cheeseman, Vice President,
Global Engineering and Research for Exide Technologies. "As
partners, Exide and Axion combine deep and broad understandings
that can effectively infuse technological innovation into practical
applications. Together, we believe we're well positioned to offer
dependable, affordable, and advanced energy solutions for the
global marketplace." In concluding Granville added, "We believe our
batteries can compete with the more expensive and exotic battery
chemistries. In the end, our relatively low cost, when compared to
the battery chemistries that appear to dominate today's headlines,
along with our ease of integration into existing manufacturing
lines, will be telling advantages when novelty wears thin and
cost-consciousness and practicality move center stage." Conference
Call / Webcast On Tuesday, April 14 at 1:00PM EDT, Axion Power will
hold a conference call and webcast to discuss this news; interested
parties should call 866-700-7477 (domestic) or 617-213-8840
(international), with 41924610 to access the call. You may also
access this call via the Internet at:
http://phx.corporate-ir.net/playerlink.zhtml?c=155732&s=wm&e=2159945
For those who are unavailable to listen to the live broadcast, a
replay will be available for seven day and can be accessed by
dialing 888-286-8010 (domestic), and 617-801-6888 (international).
The passcode is 88400108. About Exide Technologies Exide
Technologies, with operations in more than 80 countries, is one of
the world's largest producers and recyclers of lead-acid batteries.
The Company's four global business groups -- Transportation
Americas, Transportation Europe and Rest of World, Industrial
Energy Americas and Industrial Energy Europe and Rest of World --
provide a comprehensive range of stored electrical energy products
and services for industrial and transportation applications.
Transportation markets include original-equipment and aftermarket
automotive, heavy-duty truck, agricultural and marine applications,
and new technologies for hybrid vehicles and automotive
applications. Industrial markets include network power applications
such as telecommunications systems, electric utilities, railroads,
photovoltaic (solar-power related) and uninterruptible power supply
(UPS), and motive-power applications including lift trucks, mining
and other commercial vehicles. Further information about Exide,
including its financial results, are available at
http://www.exide.com/. About Axion Power International Inc Axion
has developed and patented a next generation energy storage device
that won the prestigious Frost & Sullivan Technology Award for
North America in the field of lead-acid batteries. According to
Frost & Sullivan, Axion's new PbC(R) batteries have "the
potential to revitalize the lead-acid battery industry by breathing
new life into an established technology that is not well suited to
the requirements of important new applications like hybrid electric
vehicles and renewable power." Axion Power International Inc is the
industry leader in the field of lead-acid-carbon energy storage
technologies. Axion believes this new battery technology is the
only class of advanced battery that can be assembled on existing
lead-acid battery production lines throughout the world without
significant changes to production equipment and fabrication
processes. It also believes it will be able to manufacture carbon
electrode assemblies in volume at low cost using standard automated
production methods that are commonly used in other industries. If
and when its electrode manufacturing methods are fully developed,
Axion believes it will be able to sell carbon electrode assemblies
as virtual plug-and-play replacements for lead-based negative
electrodes used by all other lead-acid battery manufacturers.
Axion's future goal, after filling their plant's lead-carbon
battery production, is to become the leading supplier of carbon
electrode assemblies for the lead-acid battery industry. For more
information, visit http://www.axionpower.com/. Forward-Looking
Statements/Exide Technologies Except for historical information,
this press release may be deemed to contain "forward-looking"
statements. The Company desires to avail itself of the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995
(the "Act") and is including this cautionary statement for the
express purpose of availing itself of the protection afforded by
the Act. The Company undertakes no obligation to publicly update or
revise any forward-looking statement in this or any prior
forward-looking statements whether as a result of new information,
future developments or otherwise. Examples of forward-looking
statements include, but are not limited to, (a) projections of
revenues, cost of raw materials, income or loss, earnings or loss
per share, capital expenditures, growth prospects, dividends, the
effect of currency translations, capital structure and other
financial items, (b) statements of plans and objectives of the
Company or its management or Board of Directors, including the
introduction of new products, or estimates or predictions of
actions by customers, suppliers, competitors or regulating
authorities, (c) statements of future economic performance and (d)
statements of assumptions, such as the prevailing weather
conditions in the Company's market areas, underlying other
statements and statements about the Company or its business.
Factors that could cause actual results to differ materially from
these forward-looking statements include, but are not limited to,
the following general factors such as: (i) the Company's ability to
implement and fund based on current liquidity business strategies
and restructuring plans, (ii) unseasonable weather (warm winters
and cool summers) which adversely affects demand for automotive and
some industrial batteries, (iii) the Company's substantial debt and
debt service requirements which may restrict the Company's
operational and financial flexibility, as well as imposing
significant interest and financing costs, (iv) the fact that lead,
a major constituent in most of the Company's products, experiences
significant fluctuations in market price and is a hazardous
material that may give rise to costly environmental and safety
claims, (v) competitiveness of the battery markets in North America
and Europe, (vi) general economic conditions, (vii) the Company's
reliance on a single supplier for its polyethylene battery
separators, (viii) the loss of one or more of the Company's major
customers for its industrial and transportation products; and (ix)
the ability of the Company's customers to pay for products and
services in light of liquidity constraints resulting from global
economic conditions and restrictive credit markets. Therefore, the
Company cautions each reader of this press release carefully to
consider those factors set forth above and those factors described
in the Company's annual report on Form 10-K filed on June 9, 2008
and its quarterly reports on Form 10-Q filed on August 8, 2008,
November 6, 2008 and February 4, 2009, because such factors have,
in some instances, affected and in the future could affect, the
ability of the Company to achieve its projected results and may
cause actual results to differ materially from those expressed
herein. Forward-looking Statements/Axion Power Certain statements
in this Press Release are "forward-looking statements" within the
meaning of the Private Securities Litigation Act of 1995. These
statements include, without limitation, statements concerning the
Company's ability to expand its manufacturing capabilities and
bring its new PbC(R) based battery products to market, the
Company's belief that its completed products will be the only class
of advance battery of its kind and that it will be a viable
replacement for older generation lead-acid batteries. These
forward-looking statements are based on our current expectations
and beliefs and are subject to a number of risk factors and
uncertainties that could cause actual results to differ materially
from those described in the forward-looking statements. Such risks
and uncertainties include the risk for the Company to complete its
development work, as well as the risks inherent in commercializing
a new product (including technology risks, market risks, financial
risks and implementation risks, and other risks and uncertainties
affecting the Company), as well as other risks that have been
included in filings with the Securities and Exchange Commission,
all of which are available at http://www.sec.gov/. We disclaim any
intention or obligation to revise any forward-looking statements,
including, without limitation, financial estimates, whether as a
result of new information, future events, or otherwise. Contacts
FOR EXIDE Jeannine Addams (Media) Kristin Wohlleben (Media)
J.Addams & Partners, Inc. (404) 231-1132 phone Carol Knies
(Investors) Senior Director of Investor Relations Exide
Technologies (678) 566-9316 phone FOR AXION POWER Axion Power
International Kelly Gubish (724) 654 9300 Allen & Caron Inc
Rudy Barrio (Investors) (212) 691-8087 Brian Kennedy (Media) (212)
691-8087 DATASOURCE: Axion Power International Inc CONTACT: Media,
Jeannine Addams, , or Kristin Wohlleben , both of J.Addams &
Partners, Inc., +1-404-231-1132, for Exide Technologies; or Carol
Knies, Senior Director of Investor Relations of Exide Technologies,
+1-678-566-9316, ; or Kelly Gubish of Axion Power International,
+1-724-654-9300, ; or Investors, Rudy Barrio, , or Media, Brian
Kennedy, , both of Allen & Caron Inc, +1-212-691-8087, for
Axion Power International Web Site: http://www.exide.com/
http://www.axionpower.com/
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