Electrosource Responds to Chrysler Announcement
11 December 1997
Electrosource Responds to Chrysler AnnouncementCompany Reaffirms Business Strategy for 1998 and Beyond SAN MARCOS, Texas, Dec. 11 -- Electrosource, Inc. today responded to news that Chrysler Corporation will offer another vendor's batteries in its Electric Powered Interurban Commuter (EPIC) minivan in the fall of 1998 for the 1999 model year. Earlier this year, Chrysler sold EPICs powered by Electrosource HORIZON(R) C2M (co-extruded composite matrix) batteries to fleet customers in California. Chrysler informed the company that it will continue with plans to order a number of Electrosource battery packs for development and field service requirements. Chrysler also said it intends to continue with development efforts with Electrosource. Electrosource Chairman, President and CEO, Michael G. Semmens, said, "Two years ago when California changed its electric vehicle mandates we realized that the electric vehicle (EV) market in the U.S. was uncertain. At that time we aggressively diversified the company's efforts to explore and develop emerging market opportunities throughout the world. While we are disappointed in this latest revision by Chrysler, we are pleased with the results of our efforts to diversify into new markets with customers and business partners such as Lockheed Martin, Fiat Auto, SMH Automobile, and Corning, Inc. and the resultant change in our revenue mix as project revenues in particular have increased over 900% for the first nine months as compared to 1996." Electrosource reported that its business plan will continue to focus on diversified market opportunities for its high power, high energy, long life battery technology. Electrosource provides production batteries for Lockheed Martin's HybriDrive(TM), used in hybrid-electric Navistar trucks and Orion heavy-duty transit buses. Also, the company is developing products for airplane and helicopter starting, electric lawnmowers, electric buses, and small electric and hybrid-electric cars. Electrosource and Corning, Inc., signed a technical development agreement involving research and development of technologies, designs, and manufacture of HORIZON C2M batteries. Electrosource, headquartered in San Marcos, Texas, designs, manufactures and markets proprietary advanced energy storage technologies and systems. Additional information about the company is located on the Internet at http://www.electrosource.com. This release contains forward-looking statements regarding sales that involve risks and uncertainties. Actual results could differ materially from those discussed in this release. Risks, including manufacturing risks, risks of uncertainty of market acceptance, change in government mandates requiring electric vehicles, delay in shipment or cancellation of orders, customer reorganization, as well as others, are detailed from time to time in the Company's Securities and Exchange Commission filings. SOURCE Electrosource, Inc.