ECD Ovonics Reports Quarterly Results

Energy Conversion Devices, Inc (ECD Ovonics) (ENER) reported that its wholly owned subsidiary United Solar Ovonic, producer of thin-film amorphous solar cells, had operating income of $1.5 million on revenues of $23.9 million, 88% of ECD's total income, in the first quarter of fiscal 2007, ended Sept 30, 2006, as compared to operating income of $1.7 million on revenues of $19.4 million in the first quarter of fiscal 2006.

The company as a whole reported a net loss of $2.3 million (or $0.06 per share) on revenues of $27.2 million in the first quarter of fiscal 2007, as compared to a net loss of $6.5 million (or $0.22 per share) on revenues of $23.2 million in the first quarter of fiscal 2006.

The Company's portfolio of alternative energy solutions includes Ovonic thin-film amorphous solar cells, modules, panels and systems for generating solar electric power; Ovonic NiMH batteries; Ovonic hydride storage materials capable of storing hydrogen in the solid state for use as a feedstock for fuel cells or internal combustion engines or as an enhancement or replacement for any type of hydrocarbon fuel; and Ovonic fuel cell technology.

THIN-FILM SOLAR
United Solar Ovonic flexible triple-junction thin-film material, shown in the picture, is made on proprietary high-output football field-sized continuous web roll-to-roll manufacturing machines similar to those used in newspaper production.

United Solar Ovonic currently has 28MW of annual production capacity at its Auburn Hills 1 location. The company's new 30MW Auburn Hills 2 facility, which is a duplicate of its Auburn Hills 1 facility, is in the final testing stages and is on track to begin commercial production in the next 45 days. Our expansion plan increases United Solar Ovonic's manufacturing capacity to 118MW, 178MW and over 300MW per annum by the end of calendar years 2007, 2008 and 2010, respectively.

United Solar Ovonic's solar modules have been installed and activated in a 1MW array on a General Motors' parts warehouse in Rancho Cucamonga, Calif. Importantly, this project was privately financed under a long-term power purchase agreement in which General Motors purchases electricity produced from the array rather than fund the up-front capital costs. This installation is expected to provide

NiMH BATTERIES
ECD Ovonics' Cobasys LLC joint venture is supplying commercial volumes of its battery systems to General Motors for the new Saturn VUE Green Line hybrid. The Saturn VUE hybrid is in dealer showrooms and on the road.

Cobasys, the only United States-based supplier of NiMH battery systems for hybrid electric vehicles, continued to successfully compete for new business opportunities, including selection by Enova Systems to provide its NiMHax® battery system for integration into service vans for a major North American fleet operator.

Cobasys is supplying its NiMH battery systems for the Saturn VUE and others from its state-of-the-art manufacturing facility in Springboro, Ohio, which is fully certified to all standards required to be a supplier to the automakers. Cobasys recently completed its first TS16949 quality standard surveillance audit, an exacting set of principles that define the quality management system requirements for the design, development and manufacture of products for the automotive industry.

Ovonic Materials Division has licensed every major manufacturer of NiMH batteries. All of these licensed manufacturers use Ovonic NiMH technology.

ENER 1-yr chart: