New BOOSTCAP® Products Developed to Satisfy Auto and Transportation Customer Specifications For Hybrid Drive Systems, Power Network Stabilization, Cold Starting and Other Heavy-Duty Applications

NEWS RELEASE

For Immediate Release
March 1, 2006

SAN DIEGO, Calif. - Maxwell Technologies, Inc. (Nasdaq: MXWL) today announced today that it is introducing 16 new Power-type BOOSTCAP® ultracapacitor cells and multi-cell modules specifically designed and constructed for the most demanding automotive and transportation applications.

Dr. Richard Balanson, Maxwell's president and chief executive officer, said that the Power product line responds directly to customer requirements for high-efficiency, "life-of-the-vehicle" energy storage and power delivery solutions.

"With more than 60 million new cars produced annually around the world and the proliferation of power-consuming functions in current and future vehicles, the automotive market is real, and it represents the single largest opportunity for ultracapacitor-based solutions, so we are moving aggressively to capitalize on Maxwell's position as the global technology leader," Balanson said.

Dr. John M. Miller, Maxwell's vice president for advanced transportation applications, said that the company's line of six new Power-type cells includes the compact, 650-farad, BCAP0650, whose versatility and high performance make ultracapacitors a compelling alternative to battery-based solutions for all types of hybrid drive systems, idle stop-start, power network stabilization and other applications.

"Automakers are turning to ultracapacitors for solutions that optimize efficiency, ensure reliable cold starting, better manage power flows, stiffen and smoothen the power distribution network and provide fail-safe backup for critical safety systems," Miller said. "The BCAP0650 and our other Power products will provide the lowest equivalent series resistance (ESR) and highest efficiency available with current ultracapacitor technology."

Other new BOOSTCAP Power products include cells ranging in capacitance from 320 to 2,600 farads and 10 fully integrated modules based on the new cells. All of the cells with a capacitance of 650 farads or greater operate at 2.7 volts, enabling them to store more energy and deliver more power per unit volume than any other commercially available ultracapacitor products. Miller said that all of the new Power products are expected to be available by the end of March. Earlier, the company announced the introduction of an equivalent line of low-cost Energy-type products for lighter duty industrial, UPS, telecommunications and consumer electronics applications.

"All of these products will meet or exceed demanding transportation and industrial application requirements for both watt-hours of energy storage and watts of power delivery per kilogram and will perform reliably for more than one million discharge-recharge cycles," Miller said. "The proprietary architecture and material science on which these product families are based also significantly reduce manufacturing cost, positioning Maxwell to compete favorably with batteries and other competing technologies."

Miller noted that Maxwell's multi-cell modules for automotive applications encased in rugged, splash-proof aluminum chassis and include internal cell balancing that give designers "plug and play" solutions, plus module-to-module balancing that makes them versatile building blocks for systems with higher voltage requirements.

BOOSTCAP ultracapacitors deliver up to 10 times the power and longevity of batteries, require no maintenance and operate reliably in extreme temperatures. In transportation applications, they efficiently recapture energy from braking for reuse in hybrid drive trains, reducing fuel consumption and emissions. They also provide compact, lightweight, "life-of-the vehicle" solutions to stabilize automotive power networks and power new, all-electric subsystems, such as drive-by-wire steering. In mission critical industrial applications, where backup power is critical for continued operation or a soft shutdown in the event of power interruptions, they provide reliable, cost-effective, maintenance-free energy storage. In wind turbine blade pitch and braking systems and other industrial applications, they provide a simple, solid state, highly reliable, solution to buffer short-term mismatches between the power available and the power required.

Maxwell is a leading developer and manufacturer of innovative, cost-effective energy storage and power delivery solutions. Our BOOSTCAP® ultracapacitor cells and multi-cell modules and POWERCACHE® backup power systems provide safe and reliable power solutions for applications in consumer and industrial electronics, transportation and telecommunications. Our CONDIS® high-voltage grading and coupling capacitors help to ensure the safety and reliability of electric utility infrastructure and other applications involving transport, distribution and measurement of high-voltage electrical energy. Our radiation-mitigated microelectronic products include power modules, memory modules and single board computers that incorporate powerful commercial silicon for superior performance and high reliability in aerospace applications. For more information, please visit our website: www.maxwell.com.

This news release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, and other expressions of management's belief or opinion that reflect its current understanding or belief with respect to such matters. These forward-looking statements and the company's business prospects in general are subject to numerous risks and uncertainties, including the fact that the company has a history of losses, may not be able to achieve or maintain profitability, and may not be able to obtain sufficient capital to meet customer demand or other corporate needs. Other risks and uncertainties involve our ability to fulfill the terms of research programs and long-term contracts, development and acceptance of products based on new technologies, demand for original equipment manufacturers' products reaching anticipated levels, general economic conditions in the markets served by the company's products, cost-effective manufacturing of new products, the impact of competitive products and pricing, and risks and uncertainties involved in foreign operations, including the impact of currency fluctuations. We may also be subject to product liability or warranty claims in excess of our reserves. These and other risks are detailed from time-to-time in the Company's SEC reports, including our Form 10-Q for the quarter ended September 30, 2005, and our Form 10-K for the fiscal year ended December 31, 2004. Actual results may differ materially from those projected. These forward-looking statements represent management's opinions and beliefs as of the date of this news release. The Company disclaims any intent or obligation to update these forward-looking statements to reflect events or circumstances that may arise after the date of this release.

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Contacts:

Media & Investors: Michael Sund, +1 (858) 503-3233; email: msund@maxwell.com
Sales & Technical - No. America: Bobby Maher +1 (858) 503-3331, email: bmaher@maxwell.com
Sales & Technical - Europe: Raphael Waeber +41 79 750 3943, email: rwaeber@maxwell.com

Note to editors:

Link for BOOSTCAP product images: http://editor.maxwell.com/