Energy Research Corporation and Corning Incorporated announce nickel-zinc battery license agreement

Business Wire, Jan 21, 1997

DANBURY, Conn.--(BUSINESS WIRE)--January 21, 1997--Energy Research Corporation (NASDAQ NMS: ERCC) today announced that it has signed an agreement to license its rechargeable nickel-zinc battery technology to Corning Incorporated (NYSE: GLW). The license provides Corning with exclusive worldwide rights to a wide range of product applications. Under the license, Corning takes the lead role for further development, manufacture and sale of ERC's nickel-zinc battery for these applications. The agreement provides for ERC to receive license fees beginning in 1997 and future royalty payments based on sales. Other terms of the agreement were not disclosed.

Upon signing the agreement today, ERC president and CEO Dr. Bernard S. Baker said, "I believe we have taken an important first step in unlocking the values of our battery technology. Corning s strong technical and manufacturing skills, combined with their leadership position in the communications, environmental and consumer marketplaces, give us confidence that we can be successful in this venture."

The cycle life of ERC's sealed nickel-zinc battery technology has improved steadily over the past three years. More than 600 cycles at an 80 percent depth of discharge and 7000 cycles at 10 percent depth of discharge have been achieved in 15 Ah single cells. Depending on size and rate, the battery can deliver energy density of 60 to 75 Wh/kg. Energy density is a measure of the amount of energy that can be obtained from a given weight of battery and is derived from such characteristics as the active and passive material's weight, cell voltage and other factors. Energy density is important for camcorders, laptop computers and virtually all portable battery applications. In addition, the battery can operate over a broad range of power levels, delivering 300 W/kg at the six minute rate of discharge. Power is a feature important for applications such as power tools, car starting and electric and hybrid vehicles. The combination of both high power and high energy density make ERC s nickel-zinc battery an attractive candidate for many applications.

"ERC's non-metallic nickel electrode contains approximately 40 percent less nickel than that which is found in the typical nickel-cadmium battery," said Allen Charkey, general manager of ERC's battery division. "In addition, zinc is substantially less expensive than cadmium or metal- hydrides and delivers 30 percent higher voltage, resulting in the need for fewer cells. In fact, the nickel-zinc battery has the highest voltage of any alkaline battery. These attributes are clearly advantageous in reducing battery cost." ERC has developed and patented a unique manufacturing process that can produce both zinc and nickel battery electrodes in a clean manner with negligible waste. This process poses no threat to either workers or the environment. Zinc, which is abundant in nature and widely available in the United States, is a low cost, safe, environmentally acceptable material that has a long history of use in primary (non-rechargeable) batteries.

"The Corning/ERC alliance presents both companies with an opportunity to complete the development and commercialization of this technology and to offer a new option in the large and rapidly growing rechargeable alkaline battery markets," said Charkey.

Energy Research Corporation, located in Danbury and Torrington, Connecticut, is an internationally recognized leader in the field of electrochemical technology for electric power generation. ERC is developing and commercializing its Direct Fuel Cells and nickel-zinc batteries in cooperation with government, electric utility and major industrial organizations on a worldwide basis.

This press release contains forward-looking statements regarding the completion of the development, potential markets and commercialization of ERC's nickel-zinc battery. The successful development and commercialization of the battery involves significant risks and uncertainties. There can be no assurance that Corning will complete the development of the battery on a timely basis, if at all, that once developed Corning will commercialize the battery, or that, if commercialized, the battery will be able to compete successfully in any of its targeted markets. The forward-looking statements in this press release speak only as of this date. ERC expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statement contained herein to reflect any change in ERC's expectation with regard thereto or any change in events, conditions or circumstances on which any such statement is based.

CONTACT: William Baker

(203) 792-1460

e-mail: moreinfo@ercc.com