| Posted: October 4, 2007 |
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Axion to Provide Batteries for New York State-Funded Demonstration to Provide Additional Peak Power Capacity
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(Nanowerk News) Axion Power
International, Inc. (OTC: AXPW) announced today that it has agreed to
supply its proprietary Lead/nano-Carbon (PbC)-acid batteries and an
advanced battery management system for a 250 kW/750 kWh demonstration
project that will be funded by the New York State Energy Research and
Development Authority ("NYSERDA"). The project will use Axion batteries to
provide utility substation support and upgrade deferral for New York's
Delaware County Electric Cooperative ("DCEC"). During the first 18 months
of the project, the batteries will be subjected to extreme environmental
conditions to test their ability to operate at those extremes.
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Starting January 2008, Axion will provide the PbC-acid batteries and
battery management system for the NYSERDA-DCEC project to privately held,
New York-based Gaia Power Technologies, Inc. ("Gaia") as subcontractor
under a prime contract between Gaia and NYSERDA. Axion will receive a cash
fee of $225,000 under the terms of this contract.
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Commenting on the NYSERDA-DCEC project, Thomas Granville, Axion's CEO
said: "The basic purpose of the NYSERDA-DCEC project is to demonstrate the
feasibility of using distributed battery storage at existing utility
substations to provide additional peak power without spending money to
construct new facilities. From 1980 through 2000, New York State's peak
demand for electrical power grew 5.1 times as much as the population."
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Mr. Granville continued, "Utilities, faced with the need to build
generation and distribution facilities to meet peak customer demand, have
long believed that cost-effective short-term energy storage systems would
be an ideal solution. To date, the bulk of the efforts have been
unsatisfactory due to the high cost and limited lives of most battery-based
systems. We believe our low-cost PbC-acid battery has the potential to
provide the cost-effective short-term energy solution the utility industry
has sought for decades. Our NYSERDA-DCEC installation will cost
significantly less than other recently announced battery projects, and will
give us an excellent opportunity to test our batteries and management
system under extreme utility operating conditions."
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Mr. Granville concluded, "Authoritative sources have forecast a
nationwide demand for up to $42 billion dollars of short-term energy
storage. Our pricing per megawatt on the NYSERDA-DCEC project is within the
target range we have identified, and we believe we can cost-reduce our
batteries significantly for volume orders. We are pleased to have this
opportunity to prove the potential of our batteries for the utility
industry."
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About Axion Power International, Inc.
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Axion has developed and patented a next generation energy storage
device that won the prestigious 2006 Frost & Sullivan Technology Innovation
Award for North America in the field of lead-acid batteries. According to
Frost & Sullivan, Axion's new PbC-acid batteries have "the potential to
revitalize the lead-acid battery industry by breathing new life into an
established technology that was not well-suited to the requirements of
important new applications like hybrid electric vehicles and renewable
power."
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Axion's new PbC-acid batteries use sophisticated carbon electrode
assemblies to replace the simple lead-based negative electrodes used by
other lead-acid battery manufacturers. The resulting PbC-acid battery
offers energy storage approaching lead acid batteries, coupled with far
longer cycle life and power output approaching super-capacitors. These
low-cost devices recharge rapidly and are environmentally friendly because
they use substantially less lead -- up to 60% in some applications. Axion
has been producing prototype PbC-acid batteries at its lead-acid battery
plant in New Castle, Pennsylvania for over a year using the same cases,
positive electrodes, separators, electrolytes and manufacturing equipment
as its specialty lead-acid batteries. The only notable manufacturing
difference is the use of its proprietary carbon electrode assemblies that
replace the lead-based negative electrodes. Early results from seven months
of demonstration testing at an integrated wind and solar power installation
in Ontario are very encouraging.
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Axion believes its PbC-acid batteries are the only class of advanced
battery that can be assembled on existing lead-acid battery production
lines with no 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 the electronics industry. 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 the lead-based negative electrodes used by all other
battery manufacturers.
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Axion's goal is to become the leading supplier of carbon electrode
assemblies for the lead-acid battery industry.
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"Safe Harbor" Statement Under the Private Securities Litigation Reform
Act of 1995:
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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 impact of the settlement agreement on our future business prospects and
our ability to successfully complete the commercialization of the e3
Supercell. 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 that the settlement agreement will not
produce the results we intend and all of the risks inherent in
commercializing a new product (including technology risks, market risks,
financial risks and implementation risks, as well as other risks and
uncertainties affecting the Company), 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.
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