Most of the lithium ion batteries available today are coming from the Far East. However, when problems such as factory fires or potentially prickly political situations arise, a domestic source is reassuring for certain customers. For this and other reasons, Electro Energy is happy to announce that after twelve months of intensive effort, they have completed the largest manufacturing facility for 18650-type cells outside Asia. The plant in the heart of Gator country, Gainesville Florida, which can put out over 30 million of the approximately AA-sized cells a year, has already been producing a large quantity that are being used for testing internally, by customers as well as independent labs. One customer has been so satisfied with their testing results they have already placed an order to be delivered immediately, so not only is the facility up and running but they are "in business."

The numbers on their 18650BX cells are pretty good too. They have a 2400mA capacity with a nominal voltage of 3.6V. Their volumetric energy density is 525 Wh/l and the specific energy is 188Wh/kg and the cells can operate at a temperature range of -30C to 60C. For all the nitty gritty details hit the jump for the press release.

Press Release:

Electro Energy Receives First Order for U.S. Produced 18650 Lithium-Ion Batteries

DANBURY, CT--(Marketwire - April 21, 2008) - Electro Energy Inc. (NASDAQ: EEEI), a leading provider of advanced battery technologies and associated systems, has received their first commercial battery order for their 18650BX rechargeable Lithium-Ion cells. EEEI has spent the past twelve months setting up their Gainesville, FL manufacturing facility to produce 18650 size lithium batteries. The Gainesville plant is the largest manufacturing facility for 18650 type cells outside Asia and has the capacity to produce over 30 million cells per year. During the past several months, a large quantity of cells was produced at this facility and these cells have successfully passed internal qualification testing.

Currently, these cells are undergoing various safety and qualification tests at independent testing laboratories as required by the targeted military and commercial customers. Certain targeted customers are also performing their own testing of the cells for conformance with their requirements. The cells performed so well in the testing protocol of one customer, that they placed an order for immediate delivery to support an advanced military application.

EEEI's 18650BX cells have 2400mA capacity and their nominal voltage is 3.6V. The weight of each cell is 46 grams. The volumetric energy density is 525 Wh/l and the specific energy is 188Wh/kg. The cells can operate at a temperature range of -30C to 60C. This is the first of a family of 18650 cells for a variety of applications. EEEI has also developed and manufactured cells with capacities of 2200mAh (18650AX) and high rate 1900mAh (18650HRX) cells. These cells have different discharge characteristics and will soon be commercially available.

Michael Reed, Electro Energy's President and CEO, said "Today, 18650 Lithium-Ion cells are primarily sourced from Asia. Domestic commercial and military customers rely on a long and complex supply chain and often carry large inventories to protect their business. In recent months, there have been major supply disruptions related to laptop battery recalls and facilities fires at major manufacturing facilities at Panasonic in Japan and LG Chemical in Korea. There is currently a major shortage of the 18650 cell as EEEI enters the market. Our highly automated Gainesville facility requires little labor to operate, making it competitive with Asian suppliers."

Electro Energy is ready to take orders for the 18650BX cells and interested customers should call 386-462-5080 or e-mail: sales@electroenergyinc.com.

About Electro Energy Inc.

Electro Energy Inc., headquartered in Danbury, Connecticut, was founded in 1992 to develop, manufacture and commercialize high-powered, rechargeable bipolar wafer cell nickel-metal hydride batteries for use in a wide range of applications. Its Colorado Springs operation is AS9100/ISO9001 certified and supplies aerospace-grade high quality nickel cadmium batteries and components for satellites, aircraft and other specialty applications. EEEI is also developing high power lithium rechargeable batteries utilizing the Company's proprietary bipolar wafer cell design. EEEI owns significant manufacturing assets near Gainesville, Florida for rechargeable lithium ion 18650 cylindrical cells, the standard cell used in the electronics industry. For further information, please visit www.electroenergyinc.com.

Certain statements in this news release may contain forward-looking information within the meaning of Rule 175 under the Securities Act of 1933 and Rule 3b-6 under the Securities Exchange Act of 1934, and are subject to the safe harbor created by those rules. All statements, other than statements of fact, included in this release, including, without limitation, statements regarding potential future plans and objectives of the companies, are forward-looking statements that involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Factors that could cause actual results to differ materially from those in the forward-looking statements include, among other things, the following: general economic and business conditions; competition; unexpected changes in technologies and technological advances; ability to commercialize and manufacture products; results of experimental studies; research and development activities; changes in, or failure to comply with, governmental regulations; and the ability to obtain adequate financing in the future. This information is qualified in its entirety by cautionary statements and risk factors disclosure contained in certain of Electro Energy Inc.'s Securities and Exchange Commission filings available at http://www.sec.gov.

[Source: Electro Energy via Marketwire]

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