MXWL:Maxwell Technologies Receives Purchase Order For 100,000 Square Meters Of Proprietary Ultracapacitor Electrode Material From Licensee In China

Maxwell Technologies, Inc. (Nasdaq: MXWL) announced today that it has received a purchase order for 100,000 square meters of its proprietary ultracapacitor electrode material from Shanghai Sanjiu Electric Equipment Company, Ltd., (Sanjiu) which is preparing to introduce a line of ultracapacitor products based on Maxwell’s cell architecture and high-performance electrode for the Chinese transportation, electric utility and industrial markets, with a specific focus on Shanghai.

The order is to be filled over the balance of 2007, based on Sanjiu’s planned production of 100,000 large cell 3,000 farad ultracapacitors cells for the year. It was placed under the terms of an April 2006 ultracapacitor technology license and exclusive electrode material supply agreement between Maxwell and Sanjiu’s joint venture parent companies, Shanghai Urban Electric Power Investment Development Corporation (SUEP) and the Ruihua Group.

Dr. Richard Balanson, Maxwell’s President and Chief Executive Officer, said that while Maxwell has been establishing separate manufacturing facilities and its own sales and distribution organization to market Maxwell’s BOOSTCAP® ultracapacitor products in China, the alliance with Sanjiu will accelerate penetration of the very large and rapidly growing Chinese market.

“The financial resources of Ruihua and SUEP and their networks of affiliated power utility and manufacturing companies and distribution channels will enable Sanjiu to expand ultracapacitor sales in China more broadly and rapidly than Maxwell could on its own,” Balanson said. “In addition to generating high-volume sales of our electrode material, this relationship may also provide an additional future option for offshore ultracapacitor assembly capacity to meet growing worldwide demand for our BOOSTCAP products.”

Mr. Hong Yuan Shuai, Chairman and Chief Executive Officer of the Ruihua Group, said that Sanjiu already has produced and delivered a variety of prototype electric and hybrid buses, trucks and other vehicles powered by drive systems employing a combination of batteries and BOOSTCAP ultracapacitors for energy storage and regenerative braking. He noted that Sanjiu also is developing ultracapacitor-based power conditioning systems to enhance the reliability of electric utility infrastructure through its affiliation with SUEP, which operates a significant portion of the utility grid in Shanghai.

“We have identified substantial and immediate demand for ultracapacitor-based energy storage and power delivery systems for a broad range of transportation, industrial and utility applications,” Mr. Shuai said. “Maxwell’s ultracapacitor cell and module designs, manufacturing know-how and high-quality, low-cost, electrode material have been instrumental in helping us to rapidly build a new company and develop a line of products to meet that demand.

Balanson said that Maxwell has provided training and technical support and documentation for Sanjiu personnel in cell and module assembly at Maxwell’s facility in San Diego, and at Sanjiu’s new plant in Shanghai. He emphasized that Maxwell will continue to manufacture its proprietary ultracapacitor electrode material internally, and that the licenses and technology transfer arrangements with Sanjiu specifically exclude Maxwell’s carbon film electrode technology.

Sanjiu is a joint venture of The Ruihua Group and SUEP, whose diverse interests are focused primarily on innovative technologies and products aimed at enhancing the efficiency and environmental compatibility of transportation, industry and electric power generation and distribution. They conduct business through wholly-owned manufacturing and electric power utility infrastructure companies and joint ventures with Japanese and Swedish partners who share their commitment to developing and commercializing “green” power solutions.

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.