Maxwell gets large ultracapacitor order from China

Shares of Maxwell Technologies (NASDAQ: MXWL) are up 4% today on news that it has received a purchase order for 100,000 square meters of its proprietary ultracapacitor electrode material from Shanghai Sanjiu Electric Equipment Company (Sanjiu).

Terms of the deal weren't disclosed.

Sanjiu is preparing to introduce a line of ultracapacitor products based on Maxwell's cell architecture and high-performance electrode, targeting the Chinese transportation, electric utility and industrial markets, with a specific focus on Shanghai.

The order is to be filled over the balance of 2007, based on Sanjiu's planned production of 100,000 large cell 3,000 farad ultracapacitors cells for the year.

Dr. Richard Balanson, Maxwell's President and Chief Executive Officer, said that while Maxwell has been establishing separate manufacturing facilities and its own sales and distribution organization to market Maxwell's BOOSTCAP® ultracapacitor products in China, the alliance with Sanjiu will accelerate penetration of the very large and rapidly growing Chinese market.

"The financial resources of Ruihua and SUEP and their networks of affiliated power utility and manufacturing companies and distribution channels will enable Sanjiu to expand ultracapacitor sales in China more broadly and rapidly than Maxwell could on its own," Balanson said.

Sanjiu has already has produced and delivered a variety of prototype electric and hybrid buses, trucks and other vehicles powered by drive systems employing a combination of batteries and BOOSTCAP ultracapacitors for energy storage and regenerative braking. Sanjiu is also developing ultracapacitor-based power conditioning systems.

"We have identified substantial and immediate demand for ultracapacitor-based energy storage and power delivery systems for a broad range of transportation, industrial and utility applications," Mr. Shuai said. "Maxwell's ultracapacitor cell and module designs, manufacturing know-how and high-quality, low-cost, electrode material have been instrumental in helping us to rapidly build a new company and develop a line of products to meet that demand.

Maxwell plans to continue to manufacture its proprietary ultracapacitor electrode material internally. The licenses and technology transfer arrangements with Sanjiu specifically exclude Maxwell's carbon film electrode technology.

Maxwell is a leading developer and manufacturer of innovative, cost-effective energy storage and power delivery solutions. It provides ultracapacitor cells, multi-cell modules and backup power systems for applications in consumer and industrial electronics, transportation and telecommunications.

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