ECD Expands NiMH Battery License to Cobasys and Restructures Relationship with ChevronTexaco

Energy Conversion Devices, Inc. (ECD Ovonics) (Nasdaq: ENER) announced that, as part of its focus on its core businesses, it is entering into a series of agreements with ChevronTexaco Technology Ventures LLC (CTTV), a subsidiary of ChevronTexaco Corporation (ChevronTexaco) (NYSE: CVX), and Cobasys LLC (Cobasys), the 50-50 Ovonic nickel metal hydride (NiMH) battery manufacturing joint venture between CTTV and Ovonic Battery Company, Inc. (Ovonic Battery), a subsidiary of ECD Ovonics, to expand the scope of licenses granted to Cobasys at the time of the formation of the joint venture in July 2001. In consideration of the expanded license, revised joint venture agreements and the collateralization of certain obligations, ECD Ovonics, through its subsidiary Ovonic Battery, will receive an option to purchase the 4,376,633 shares of ECD common stock currently owned by a subsidiary of ChevronTexaco. The option is exercisable at $4.55 per share and expires on November 1, 2005. In addition, CTTV will transfer to ECD its interest in Texaco Ovonic Hydrogen Systems LLC (TOHS) in consideration of relieving CTTV of any continuing obligations to fund TOHS. The transaction will increase ECD Ovonics' operating income in the quarter ended December 31, 2004 by approximately $77 million as a result of […]

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