Message #2 From:
NewsBot Date: September 19, 2007 06:34:24 AM
Axion Power Receives Initial Payment from Commonwealth of Pennsylvania
Part of $1.2 Million Grant from the Department of Environmental Protection
NEW CASTLE, Pa., Sept. 11 /PRNewswire-FirstCall/ -- Axion Power
International, Inc. (Pink Sheets: AXPW) announced today that it has received
an initial payment of $512,000 from the Commonwealth of Pennsylvania under the
terms of a previously announced grant from the Department of Environmental
Protection's (DEP) Small Business and Household Pollution Prevention Program.
The payment represents a partial reimbursement of costs Axion incurred as a
result of the purchase of new manufacturing equipment for its facility in New
Castle, Pennsylvania.
Thomas Granville, Axion's CEO, said: 'We thank the Governor's Action Team,
the Department of Community Development and all the other little people of
Pennsylvania government, whose cooperative effort made this initial grant
happen. Governor Rendell has made 'energy independence' and a 'return of jobs
to Pennsylvania' high priority items. Axion Power will be an important
contributor to both initiatives. We also have a prominent place in
Pennsylvania's Green Technology sector due to the lead reduction in our more
environmentally friendly product.'
The Company plans to use the cash payment to augment their working
capital, support further design development of their new proprietary carbon
electrode, and facilitate the ongoing expansion of the New Castle operations.
During the next couple of months, they expect to receive additional equipment
cost reimbursements amounting to $238,000 from DEP, as well as a $150,000
Opportunity Grant cash payment. Axion has also begun to receive $42,300 in
Customized Job Training funds and $258,000 in Job Creation Tax Credits that
make up the remainder of the $1,200,000 Pennsylvania grant.
Axion has developed and patented a next generation energy storage device
that won the prestigious 2006 Frost & Sullivan Technology Innovation Award for
North America in the field of lead-acid batteries. According to Frost &
Sullivan, Axion's new PbC-acid batteries have 'the potential to revitalize the
lead-acid battery industry by breathing new life into an established
technology that was not well-suited to the requirements of important new
applications like hybrid electric vehicles and renewable power.'
Axion's new PbC-acid batteries use sophisticated carbon electrode
assemblies to replace the simple lead-based negative electrodes used by other
lead-acid battery manufacturers. The resulting PbC-acid battery offers energy
storage approaching lead acid batteries, coupled with far longer cycle life
and power output approaching super-capacitors. These low-cost devices recharge
rapidly and are environmentally friendly because they use substantially less
lead -- up to 60% in some applications. Axion has been producing prototype
PbC-acid batteries at its lead-acid battery plant in New Castle, Pennsylvania
for over a year using the same cases, positive electrodes, separators,
electrolytes and manufacturing equipment that are used in its specialty lead-
acid batteries. The only notable manufacturing difference is the use of its
proprietary carbon electrode assemblies that replace the lead-based negative
electrodes. Early results from seven months of demonstration testing at an
integrated wind and solar power installation in Ontario are very encouraging.
Axion believes its PbC-acid batteries are the only class of advanced
battery that can be assembled on existing lead-acid battery production lines
with no significant changes to production equipment and fabrication processes.
It also believes it will be able to manufacture carbon electrode assemblies in
volume at low cost using standard automated production methods that are
commonly used in the electronics industry. When its electrode manufacturing
methods are fully developed, Axion believes it will be able to sell carbon
electrode assemblies as virtual plug and play replacements for the lead-based
negative electrodes used by all other battery manufacturers.
Axion's goal is to become the leading supplier of carbon electrode
assemblies for the lead-acid battery industry.
'Safe Harbor' Statement Under the Private Securities Litigation Reform Act
of 1995:
Certain statements in this Press Release are 'forward-looking statements'
within the meaning of the Private Securities Litigation Act of 1995. These
statements include, without limitation, our ability to successfully complete
the commercialization of the PbC product. These forward-looking statements are
based on our current expectations and beliefs and are subject to a number of
risk factors and uncertainties that could cause actual results to differ
materially from those described in the forward-looking statements. Such risks
and uncertainties include all of the risks inherent in commercializing a new
product including technology risks, market risks, financial risks and
implementation risks, as well as other risks and uncertainties affecting the
Company, included in filings with the Securities and Exchange Commission, all
of which are available at www.sec.gov. We disclaim any intention or obligation
to revise any forward-looking statements, including, without limitation,
financial estimates, whether as a result of new information, future events, or
otherwise.
Contact: Allen & Caron Axion Power International Inc. Rudy Barrio (investors) Kelly Gubish Brian Kennedy (media) 724 654 9300 212 691 8087 kgubish@axionpower.com r.barrio@allencaron.com brian@allencaron.com
