A123Systems is aiming not only at the new cars market (with its
development contract with GM for the Saturn Vue PHEV and perhaps the
Volt, but also for the conversions market. Here's today's press release.


President Bush Meets with A123Systems' CEO to Discuss Advanced
Batteries for Plug-In Hybrids Capable of Over 150 MPG

Priority Lithium Ion R&D with Automakers and DOE Needed to Support
Mass Produced Plug-In Hybrids Should Be Augmented by New Standardized
Modules Enabling Today's Hybrids to Become Plug-Ins with a
Significant and Earlier Improvement in Mileage Efficiency

CAPTION: A123Systems CEO shows standardized, easy to install PHEV
module to President Bush and Secretary Bodman at the White House
(Business Wire: Photo)
<http://home.businesswire.com/portal/site/google/index.jsp?ndmViewId=news_view&n\
ewsId=20070226006122&newsLang=en>

WATERTOWN, Mass.--(BUSINESS WIRE)--A123Systems of Boston,
Massachusetts, developer and marketer of state-of-the-art lithium ion
batteries, announced today that their CEO, David Vieau, met with
President George W. Bush and Energy Secretary Samuel Bodman at the
White House on Friday to inspect a prototype Battery Range Extender
Module that can be easily installed in the spare tire well of most
hybrid vehicles, enabling these current production models to become
plug-in hybrids capable of achieving 150 or more miles per gallon.

Several companies are marketing such modules using A123Systems'
battery cells. Testing at DOE's Argonne National Labs has confirmed
the effectiveness in an existing hybrid of such range extension
battery modules. By year's end, there will be over 500,000 hybrids on
US roads, with over 4 million vehicles expected by the end of the
decade that could benefit from these modules.

"A123Systems top priority is to work with automakers, including GM on
the Saturn VUE Plug-In Hybrid program. We are also working closely
with the DOE in their continuing support for more intensive research,
to the end of further reducing the weight and cost of larger cells,
which will be critical to the mass production of OEM plug-in
hybrids," Vieau observed.

"Every new and converted plug-in hybrid has the potential to reduce
oil consumption for that vehicle by as much as 75% and emissions by
up to 50% in pursuit of the President's goal to reduce oil imports by
20% before 2017," said Vieau. "The President was very interested in
talking about the additional research dollars and consumer incentives
that would start putting meaningful numbers of plug-in hybrids on the
road as soon as possible," he added.

"In the meantime, introducing the American public to the dramatic
efficiency potential of the battery progress we have already made
could kick start our national energy savings while providing
invaluable experience and data for accelerating the essential
transition from foreign oil to an ever cleaner electricity grid," Vieau noted.

A123Systems is also working with NYSERDA on a program that could put
as many as 600 Plug-In Hybrids on the road using such range extender
modules. Several other states are proposing similar fleet programs.
In helping make such plug-in modules available to the greatest number
of fleets and consumers, A123Systems will emphasize standardized,
mass produced and fully tested installations which, unlike other
custom conversions, require no modification of existing software or
battery systems, and minimal installation time.

A123Systems also recently announced it will work with GE to develop
systems for the hybrid bus market and recently received a $15 million
development contract for next generation HEV batteries from the U.S.
Department of Energy and the United States Advanced Battery
Consortium (USABC), an organization composed of DaimlerChrysler
Corporation, Ford Motor Company and General Motors Corporation.

About A123Systems

A123Systems has quickly become one of the world's leading suppliers
of high-power lithium-ion batteries. Based on the company's patented
nanophosphate technology, the batteries deliver previously
unattainable levels of power, safety and life. Applicable to a wide
range of industries, A123Systems' products allow OEMs expanded
flexibility in system design, removing many traditional technology
constraints. Currently, the Company sells millions of battery cells
to Black and Decker and Dewalt for use in the most advanced handheld
power tools available on the market today. Founded in 2001,
A123Systems' proprietary nanoscale electrode technology is built on
initial developments from the Massachusetts Institute of Technology.
For additional information please visit www.a123systems.com.

-- -- -- -- -- -- -- -- -- -- -- --
Felix Kramer fkramer@...
Founder California Cars Initiative
http://www.calcars.org
http://www.calcars.org/news-archive.html
-- -- -- -- -- -- -- -- -- -- -- --