Deal Substantially Broadens the Technology Portfolio of A123

LIVONIA, Mich.--A123 Systems LLC, a developer and manufacturer of advanced lithium-ion batteries and systems, today announced its completion of a transaction to acquire certain intellectual property and technical staff of Leyden Energy. Leyden's intellectual property in battery materials covering lithium titanate (LTO) and non-flammable electrolyte developments were acquired for an undisclosed amount. As a part of the deal, key technical staff of Leyden Energy have also agreed to join A123 Systems' R&D organization.

Leyden is the recent recipient of significant development funding from United States Advanced Battery Consortium LLC (USABC), an organization whose members include Chrysler Group LLC, Ford Motor Company and General Motors. Under that program, Leyden achieved outstanding progress on development of its technology for micro-hybrid applications in the automotive market. In particular, the inherent LTO properties of long cycle life and exceptional power capability were extended to operate over a substantially wider temperature range.

The acquisition of Leyden's technology in this field complements the lithium iron phosphate (LFP) materials portfolio that A123 commercialized nearly a decade ago under the Nanophosphate® trade name. Recently, the A123 research and development organization has also extended the high power capability of its LFP-based materials under the UltraPhosphate™ trade name. Taken together, these developments and the acquisition of Leyden's intellectual property demonstrate A123's strong commitment to meeting and exceeding the technical requirements of micro-hybrid applications around the world.

"As the world's OEMs continue to invest more effort in the development of their respective micro-hybrid systems, the global diversity of requirements is growing rapidly. By expanding our technology portfolio for this fast-growing market, A123 now has the right solution for nearly every micro-hybrid program worldwide," said Jason Forcier, CEO of A123 Systems. "We are pleased to welcome the Leyden Energy scientists to A123 and look forward to further development in each segment of our expanded portfolio."

About A123 Systems

A123 Systems LLC, a wholly owned subsidiary of Wanxiang Group, is a leading developer and manufacturer of advanced lithium-ion batteries and energy storage systems for transportation and other commercial and industrial applications. The company's proprietary Nanophosphate® lithium iron phosphate technology is built on novel nanoscale materials initially developed at the Massachusetts Institute of Technology and is designed to deliver high power and energy density, increased safety and extended life. A123 leverages breakthrough technology and expert system integration capabilities to enable next-generation products for its customers globally. For more information, please visit www.a123systems.com.