Battery Xpress Partner Awarded Federal Grant

Thursday, September 24, 2009

Exide Technologies Awarded Federal Grant

Milton, Georgia – (August 7, 2009) – As part of President Obama's announcement on Wednesday concerning new advanced battery and electric drive projects that will receive $2.4 billion in funding under the American Recovery and Reinvestment Act of 2009, Exide Technologies was awarded $34.3 million for its proposal for the domestic manufacture of affordable lead-acid batteries incorporating advanced carbon technology. Exide Technologies (NASDAQ: XIDE, www.exide.com) is a global leader in stored electrical-energy solutions for both transportation and industrial applications.

Exide's project involves two of its global technologies: a spiral wound absorbed glass mat (AGM) design and a flat plate AGM design. These batteries are fully production ready, and Exide already has customers for these products.

In addition to its own advanced carbon technology, Exide recently entered into a memorandum of understanding with Axion Power International, Inc., a developer of advanced batteries and energy storage products that incorporate patented lead carbon battery PbC Technology™. This collaboration provides a multi-dimensional structure of expertise that fuels Exide's ability to expedite the development of advanced lead-acid batteries and new chemistries for use in product development, broadening opportunities in transportation channels.

The project will address the increased demand for micro-hybrid vehicles, idle reduction commercial vehicles, and other strategic market segments. Exide's project also is designed to offer favorable energy and environmental impacts. During the next three years, the Company believes that the investment will enable production capacity of approximately 1.5 million batteries and create as many as 320 manufacturing jobs – approximately 120 positions at its Transportation manufacturing operation in Bristol, Tennessee and 200 positions at its Industrial Energy manufacturing facility in Columbus, Georgia.

The Exide facility in Bristol, Tennessee will be the only advanced AGM spiral wound lead-acid battery production operation in the U.S. that serves the transportation market segment. The Columbus, Georgia project will address the investment in advanced AGM flat plate batteries. In addition to transportation applications, the Exide Columbus location is expected to offer these products and technology for industrial applications. Both Exide operations will manufacture the AGM batteries, with and without carbon, for stop-start, micro-hybrid and no-idle vehicle applications.
Exide estimates that these advanced AGM batteries, when installed in vehicles incorporating energy management technologies, can save approximately 75 million gallons of fuel per year – equivalent to $175 million at the pump. This fuel savings also is expected to reduce U.S. dependence on imported oil by more than three million barrels per year, likewise reducing emissions by more than 600,000 metric tons of carbon dioxide (CO2) per year.

"Despite the current economic situation, we believe this area of investment can be expected to yield significant benefits including job creation, energy savings and an association with both advanced technology and environmental sustainability," said Gordon Ulsh, President and Chief Executive Officer of Exide Technologies. "The convergence of innovative designs, novel carbon-lead hybrid chemistries, and the application of nano technology – all in conjunction with lead-acid technology that has proven itself for more than a century – sets the stage for the delivery of superior energy storage solutions."

Exide also has received support from the states of Georgia and Tennessee that will amount to as much as $15 million in tax incentives and other benefits during the next decade.

About Exide Technologies

Exide Technologies, with operations in more than 80 countries, is one of the world's largest producers and recyclers of lead-acid batteries. The Company's four global business groups – Transportation Americas, Transportation Europe and Rest of World, Industrial Energy Americas and Industrial Energy Europe and Rest of World – provide a comprehensive range of stored electrical energy products and services for industrial and transportation applications.

Transportation markets include original-equipment and aftermarket automotive, heavy-duty truck, agricultural and marine applications, and new technologies for hybrid vehicles and automotive applications. Industrial markets include network power applications such as telecommunications systems, electric utilities, railroads, photovoltaic (solar-power related) and uninterruptible power supply (UPS), and motive-power applications including lift trucks, mining and other commercial vehicles.

Further information about Exide, including its financial results, are available at www.exide.com.