Maxwell Receives Large Order for Ultracapacitor Electrode Material From Licensee in China

30 January 2007

Maxwell Technologies has received a purchase order for 100,000 square meters of its proprietary ultracapacitor electrode material from Shanghai Sanjiu Electric Equipment Company, Ltd. (Sanjiu). Sanjiu is preparing to introduce a line of ultracapacitor products based on Maxwell’s cell architecture and high-performance electrodes for the Chinese transportation, electric utility and industrial markets, with a specific focus on Shanghai.

Sanjiu 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 Maxwell BOOSTCAP ultracapacitors for energy storage and regenerative braking.

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.

—Hong Yuan Shuai, Chairman and Chief Executive Officer of the Ruihua Group

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.

The order was placed under the terms of an April 2006 ultracapacitor technology license and exclusive electrode material supply agreement between Maxwell and Sanjiu’s joint venture parent companies, Shanghai Urban Electric Power Investment Development Corporation (SUEP) and the Ruihua Group.

Maxwell has provided training and technical support and documentation for Sanjiu personnel in cell and module assembly at Maxwell’s facility in San Diego, and at Sanjiu’s new plant in Shanghai.

Maxwell will 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 also establishing separate manufacturing facilities and its own sales and distribution organization to market ultracapacitor products in China.

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. In addition to generating high-volume sales of our electrode material, this relationship may also provide an additional future option for offshore ultracapacitor assembly capacity to meet growing worldwide demand for our BOOSTCAP products.

—Dr. Richard Balanson, Maxwell’s President and Chief Executive Officer