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MBI Litigation Concluded in Favor of ECD

5 January 1998

MBI Litigation Concluded in Favor of ECD

    TROY, Mich., Jan. 5 -- The litigation brought by Matsushita
Industrial Company, Ltd. ("MBI") against Energy Conversion Devices, Inc.
("ECD") in the U.S. District Court for the District of Delaware
(the "Court") has been successfully concluded.  On December 23, 1997, the
Judge issued the Final Order and Opinion giving ECD and its subsidiary, Ovonic
Battery Company, Inc. ("Ovonic Battery"), precisely the results they had
sought, with the sole exception of denying the request for attorneys' fees.
    In its opinion, the court noted that MBI had represented in its deposition
testimony that the Model MHI-BX battery is the only EV battery which MBI
currently and "from now on" intends to sell in the United States.  This was a
primary factor in the Court's granting of ECD's motion to dismiss the MBI
lawsuit.  This outcome effectively limits MBI and its joint venture with
Toyota Motor Corporation, Panasonic EV Energy Co. of Osaka, Japan, to this one
low-energy density model EV battery (the MHI-BX) covered under a prior
agreement between ECD and MBI, without the ability to further improve the
battery by utilizing ECD's advanced nickel metal hydride ("NiMH") battery
technology not covered by the prior agreement.
    The MHI-BX battery has lower specific energy than the current production
GM Ovonic NiMH EV battery and significantly less energy than the Ovonic
"Family of Batteries" developed by ECD/Ovonic Battery for the full range of
EVs and HEVs.  The production GM Ovonic NiMH battery is manufactured by GM
Ovonic, L.L.C. ("GM Ovonic"), a joint venture between Ovonic Battery and
General Motors Corporation .  GM Ovonic is now in a much stronger
competitive position due to the advanced Family of Batteries developed by
Ovonic Battery, the issuance of the basic NiMH patent in Japan, and the
outcome of this favorable court decision.
    Commenting on the decision, Mr. Stanford R. Ovshinsky, President and CEO,
ECD, said, "The very favorable outcome of this litigation, coupled with the
1997 issuance in Japan of the basic patent for Ovonic NiMH battery technology,
confirms ECD's dominant position and strengthens our future business
transactions."  Agreeing with Mr. Ovshinsky, Mr. Robert C. Stempel, Chairman,
ECD, noted, "While the litigation was costly, the litigation outcome greatly
enhances ECD's competitive position.  The granting of the Japanese patent
further emphasizes the strength of ECD's basic intellectual property rights
worldwide."
    The GM Ovonic NiMH batteries for EVs and HEVs will be available to other
vehicle manufacturers.  The battery, in various sizes, is suitable for EVs and
HEVs from bicycles and scooters to cars, trucks and buses.  A robust, long
life, maintenance-free battery, the GM Ovonic NiMH battery is expected to last
the life of the vehicle (100,000 miles in an electric car).
    ECD is a leader in the synthesis of new materials and the development of
advanced production technology and innovative products.  It has pioneered the
  development of products and production technology based on amorphous,
disordered and related materials, with an emphasis on alternative energy and
advanced information technologies.  ECD's web site is http://ovonic.com.

SOURCE  Energy Conversion Devices, Inc.