PHOTO OF PATH ALONG WOODED AVENUE (STOCK ART) T A B L E O F C O N T E N T S
2. The Leaders of ECD
4. Ovonics@Work Around the World
4. Strategic Relationships
6. World-Changing Technology Solutions
7. Information Technology
9. Energy Generation
9. Energy Storage
10. People Make the Difference
12. Shareholder Information
PHOTO OF FRONT OF HEADQUARTERS' BUILDING PHOTO OF STAN OVSHINSKY, BOB STEMPEL AND IRIS OVSHINSKY PICTURE OF ECD'S ANNIVERSARY COIN WITH THE WORDS INFORMATION ON ONE SIDE AND ENERGY ON THE OTHER
T H E L E A D E R S O F E C D [PHOTO] S T A N F O R D O V S H I N S K Y
President and Chief Executive Officer
Stan Ovshinsky pioneered the fundamentally new science of amorphous and
disordered materials. In 1960, Stan established ECD to use science and
technology based on his game-changing discoveries to solve basic societal
problems, by offering innovative solutions for building new industries.
Forty-plus years later, Stan's original vision is reality. New technologies,
including optical media, digital memory and the solid hydrogen storage
materials, have been bolstered as a result of Stan's inventions. As a result of
Stan's pioneering inventions, innovation, and vision, these technologies will
continue to develop, grow, and change the world through Ovonic Solutions.
[PHOTO] I R I S O V S H I N S K Y
Vice President and Director
Iris Ovshinsky, co-founder of ECD with her husband, has degrees in zoology,
biology, and a doctorate in biochemistry. Working as a team, the Ovshinskys
pioneered breakthroughs in four major areas : energy generation, energy storage,
information systems, and atomically engineered synthetic materials. They have
been honored with the American Chemical Society's Heroes of Chemistry 2000
[PHOTO] R O B E R T S T E M P E L
Bob Stempel retired as Chairman and Chief Executive Officer from General Motors
Corporation after 34 years with the auto giant. One of the world's foremost
automobile engineers, he brings to ECD his vast experience in the auto industry
as well as a vision to produce zero-emissions vehicles by the end of this
decade. ECD's forward-looking technology, and the intent to pioneer battery
development and solid hydrogen storage, brought Bob out of retirement and to
ECD. PHOTO OF BOY WITH BUTTERFLY (STOCK ART)
(PHOTO) (PHOTO) (PHOTO)
Nancy Bacon Homero del Bosque Dr. Benjamin Chao
Senior Vice President Vice President, Director of Central
and Director, ECD Business Development Analytical Laboratory
for Latin America
(PHOTO) (PHOTO) (PHOTO) (PHOTO) (PHOTO)
Dr. Wally Czubatyj Subhash Dhar Michael Fetcenko Dr. Hellmut Fritzsche Angela Goddard
Director of President and Chief Senior Vice President, Vice President and Director of Corporate
Engineering- Troy, Operating Officer, Ovonic Battery Director, ECD Marketing
Ovonyx Ovonic Battery Company
Company; Director, ECD
(PHOTO) (PHOTO) (PHOTO) (PHOTO) (PHOTO)
Dr. Subhendu Guha Dr. Masat Izu Ghazaleh Koefod Roger Lesinski Dr. Alastair Livesey
President, United Solar Vice President, Corporate Secretary/ General Counsel Director of Hydrogen
and Bekaert ECD Film Technology Shareholder Relations Energy Systems
(PHOTO) (PHOTO) (PHOTO) (PHOTO) (PHOTO)
Tyler Lowrey Thomas Neslage Boil Pashmakov Max Powell Marvin Siskind
President and Chief Senior Vice President, Manager of Vice President, Vice President, Patent
Executive Officer, Global Sales and Information African Relations Counsel
Ovonyx Marketing Technology Research
(PHOTO) (PHOTO) (PHOTO)
David Strand Dr. Rosa Young Stephan Zumsteg
Manager of Optical Vice President, Vice President, Chief
Memory Products Advanced Materials Financial Officer
ovonics@work AROUND THE WORLD
The world of ECD Ovonics is getting bigger.
ECD Ovonics is in a unique position of BRAND IDENTIFIERS:
leadership and growth as the hydrogen
economy continues to evolve. With a full Ovonic Ovonic Ovonic
range of technologies, advanced systems Battery Solar Hydrogen
and solutions now in place, each based on Solutions Solutions Solutions
Stan Ovshinsky's principles of amorphous
and disordered materials, ECD Ovonics is
moving to be a global solutions provider. We
are now entering one of the most exciting Ovonic Ovonic Ovonic
times in our company's history: building Fuel Cell Media Information
momentum to expand Ovonic Solutions Solutions Solutions Solutions
We have ovonics@work in more areas than ever before. Ovonic technology can be
found in a wide range of applications ... from nickel metal hydride (NiMH)
batteries, to solar energy systems, to solid hydrogen storage technology, to
fuel cell technology, to rewritable DVDs, to semiconductor chips, and more.
It is all part of a master plan developed over 40 years ago by our company
founders. The Ovshinskys' vision enables us to solve fundamental energy and
information problems through Ovonic Solutions. Today, ECD Ovonics enables the
creation of new industries by developing technology and applications and
marketing integrated solutions that solve basic problems.
S T R A T E G I C R E L A T I O N S H I P S
We have established joint ventures, licensing agreements and other strategic
alliances with major companies around the world to enable us to achieve our
Intel, STMicroelectronics, and BAE Systems are some of the names partnering with
our joint venture company, Ovonyx, in the Information Solution side of the
business. Additionally, GE has partnered with us in the Media Solutions side of
our business. This is in addition to licensing agreements with names such as
Ricoh, Matsushita/Panasonic, and TDK.
ChevronTexaco and ECD Ovonics have established
joint ventures for the development and
O.von.ic (o-von ik) commercialization of advanced Energy Storage and
adj. Of or relating to Energy Generation technologies. The joint ventures
a device whose opera- are in the areas of our proprietary Ovonic Nickel
tion is based on the Metal Hydride (NiMH) Battery, Ovonic Solid
Ovshinsky effect. Hydrogen Storage(TM), and the Ovonic Regenerative
[OV(SHINSKY EFFECT) + Fuel Cell(TM) technologies. ECD Ovonics has
(ELECTR)ONIC.] partnered with conventional energy companies in
their efforts to become total energy solutions
American Heritage Dictionary providers. Along these lines, ECD Ovonics, its
affiliates, and Chevron Energy Solutions are
working together in a strategic marketing
Bekaert of Belgium is partnering with us in the
area of Energy Generation, as we take our
groundbreaking solar energy systems further into
the general market during a time when energy
issues are making headlines.
W O R L D -C H A N G I N G T E C H N O L O G Y S O L U T I O N S
ECD Ovonics is based on the twin pillars of energy and information. Based on our
atomic engineering principles, we invent new materials, we invent products, and
we invent production technologies. We lead the way to new industries in both
energy and information through an integrated solutions approach. Here are some
of the ways:
Ovonic Solar Solutions offers the enabling technology for the UNI-SOLAR(R)
SmartRoof(TM), an all-in-one residential solar roofing system.
Ovonic Hydrogen Solutions offers the technology to provide safe, reliable ways
to store and transport solid hydrogen for powering fuel-cell or internal-
combustion-engine vehicles and other products.
Ovonic Battery Solutions' NiMH technology, which started the hydrogen economy,
has been used throughout the world. For example, every cell phone or laptop that
uses a NiMH rechargeable battery uses our technology. Our NiMH battery
technology powers the Honda Insight and the Toyota Prius.
Ovonic Regenerative Fuel Cell(TM) technology will afford a lower-cost, reliable
solution to energy generation.
Our continuous-web roll-to-roll technology enables the manufacture of Ovonic
Media Solutions' optical media products, such as phase-change rewritable DVDs.
Ovonic Information Solutions' Ovonic Unified Memory (OUM) microelectronic
technology has been licensed to our joint venture, Ovonyx. Together, we are
developing high-density, non-volatile memory for commercial applications.
OVONIC HYDROGEN SOLUTIONS BRAND IDENTIFIER AND CONCEPTUAL DIAGRAM BY WHICH SOME OF THE OVONIC SOLUTIONS MAY BE USED TO PRODUCE ELECTRICITY, HYDROGEN GAS, OXYGEN
GAS AND FURTHER ELECTRICITY, ALL OF WHICH MAY BE PRODUCED AND USED IN AN ENVIRONMENTALLY RESPONSIBLE MANNER. WITHIN THIS CONCEPTUAL CYCLE, HYDROGEN AND ELECTRICITY MAY BE STORED THROUGH APPLICATION OF SOME OF THE OVONIC SOLUTIONS WITH NO NET EMISSIONS OR CONSUMPTION OF VALUABLE RESOURCES.
I N F O R M A T I O N T E C H N O L O G Y
Computers are a vital component of modern life. The quest for information offers
both great challenges and great opportunities as we develop our game-changing
enabling technologies. Our joint ventures and divisions are working on new
products and solutions that are revolutionizing the information technology
Ovonic Information Solutions is developing Ovonic Unified Memory (OUM) for
commercial applications. Our joint venture called Ovonyx is a part of this
development activity. Through Ovonyx, ECD Ovonics is commercializing OUM
technology for microelectronic applications in conjunction with industry
leaders - joint venture partner and licensee Intel, and BAE Systems and
STMicroelectronics, our leading licensees.
OUM is a unique, thin-film, solid-state memory invented by Stan Ovshinsky that
offers key competitive advantages for the microelectronic-memory and embedded-
logic marketplace. Among the products that will use our OUM technology are
cellular telephones, digital cameras, networking routers, and data services.
With a single device, OUM can replace flash memory, DRAM and SRAM, and it has
unique multi-state as well as nonvolatile features. Its lower price also makes
it an attractive alternative to the 30-year-old CMOS (complementary metal oxide
At ECD Ovonics, our Ovonic Media Solutions unit develops phase-change optical
memory solutions and proprietary low-cost production processes. A part of this
activity is our strategic alliance and joint venture with General Electric (GE)
called Ovonic Media. Ovonic Media utilizes our continuous roll-to-roll
manufacturing technology to reduce the cost of producing disks. The products
incorporate and advance both ECD's phase-change and GE's optical-quality
polycarbonate materials. Together, we are expanding the operations to attain
volume production. Our approach addresses not only the rewritable DVD market,
but the read-only and write-once markets as well.
OVONIC MEDIA SOLUTIONS AND OVONIC UNIFIED MEMORY SOLUTIONS IDENTIFIERS CONCEPTUAL DIAGRAM DEPICTING: OVONIC OPTICAL MEMORY FOR REWRITABLE CD AND DVD MEDIA FOR STORAGE OF COMPUTER AND VIDEO DATA; OVONIC UNIFIED MEMORY WHICH MAY REPLACE FLASH, DRAM, SRAM AND EMBEDDED MEMORIES FOR USE IN PCS, VIDEOS, CAMERA AND CELL PHONES
PHOTO FROM INSIDE OF VEHICLE (STOCK ART) OTHER PHOTOS ON PAGE: 36/42 VOLT NIMH GASOLINE FILLING STATION COVERED PARKING STRUCTURE
BATTERY PACK WITH UNI-SOLAR PHOTO- PROPOSAL WITH UNI-SOLAR VOLTAICS ON ROOF BUILDING INTEGRATED PHOTOVOLTAICS ON THE ROOF
OVONIC NIMH POWERED NIMH BATTERY PACK FOR ELECTRIC SCOOTER TRANSIT BUS VEHICLE PROPULSION CARPORT WITH UNI- ELECTRIC CAR BUILDING WITH UNI-SOLAR SOLAR PHOTOVOLTAICS PHOTOVOLTAICS
PHOTO OF GIRL ON TIRE SWING (STOCK ART) E N E R G Y G E N E R A T I O N
Industry projections of the demand for electric power are staggering. These
projections indicate that there will be more generating capacity installed in
the next 25 years than in the previous 100! The long-term market outlook is
United Solar Systems, Bekaert ECD Solar Systems and ChevronTexaco Ovonic Fuel
Cell Company are joint ventures created from ECD divisions to capitalize on this
Bekaert ECD Solar Systems' products are marketed under the name UNI-SOLAR(R).
These products have achieved world records for efficiency for amorphous
materials. UNI-SOLAR(R) thin-film photovoltaics (PV) are lightweight, flexible,
unbreakable, and radiation-hard. You can drive a nail through them . . . and
they still produce electricity! To further reduce costs, we are building a
25-megawatt machine that will increase our production capabilities five-fold,
enabling us to produce large commercial systems such as a 400-kilowatt
installation that can be upgraded to generate as much as 1 megawatt for powering
a ChevronTexaco oil field in California.
The ChevronTexaco Ovonic Fuel Cell Company takes advantage of ECD Ovonics'
unique, low-cost, proprietary non-noble metal catalyst materials. Ovonic
Regenerative Fuel Cell (TM) technology will allow for significantly superior
performance (such as instant start and regenerative braking capabilities), and
lower costs compared to other technologies such as Proton Exchange Membrane
(PEM) fuel cells.
E N E R G Y S T O R A G E
Hydrogen is the lightest and most common element. As the world moves to reduce
its dependence on fossil fuels, ECD Ovonics technology will continue to lead the
way to the hydrogen economy, tapping into the ultimate non-depleting,
non-polluting energy source in the universe.
For years, ECD Ovonics technology has allowed us to use hydrogen safely and
efficiently in our everyday lives. Our NiMH battery technology is based on
hydrogen storage materials that are a totally new approach to energy storage.
All you have to remember is that if it says NiMH on your battery, it uses Ovonic
Through ChevronTexaco Ovonic Battery Systems, we will continue to develop and
commercialize our fully integrated battery systems. These systems are designed
primarily for larger applications, such as automotive and stationary power. Our
enabling technology is ideal for conventional internal-combustion vehicles'
36/42 volt systems. Further, Ovonic NiMH batteries are the battery of choice for
electric vehicles (EVs) and hybrid electric vehicles (HEVs) of all types - from
trucks and buses to cars and scooters.
With the formation of ChevronTexaco Ovonic Hydrogen Systems, we will continue to
help accelerate the evolution of the hydrogen economy. We offer a safe, reliable
way to store and transport hydrogen: using Ovonic metal hydrides. Furthermore,
we have a hydrogen infrastructure patent.
In automotive applications, hydrogen stored in metal hydrides is a safe, compact
system alternative to compressed gas or liquid hydrogen. We have also developed
a canister system for smaller applications like generators, scooters, and lawn
mowers. Quite simply, the Ovonic Hydrogen Solution is a game-changer.
S H A R E H O L D E R I N F O R M AT I O N
ECD (NASDAQ: ENER) was founded in 1960 by Stanford R. and Iris M. Ovshinsky to
solve fundamental societal problems, to further the scientific investigation of
the physics and chemistry of amorphous and disordered materials, and to engineer
new materials and develop products using those materials. Our focus on
disordered and amorphous materials is reflected in the company's logo, which
schematically depicts the bonding arrangements between atoms in an amorphous
The company has developed a range of successful technologies - including
products and advanced manufacturing processes - primarily within the fields of
energy generation, energy storage, and information technology. Commercialization
of our proprietary technologies has proceeded through the formation of major
manufacturing joint ventures and licensing agreements.
ECD is listed on the Nasdaq National Market System under the trading symbol
ENER. To obtain additional information about ECD or to be placed on our email
distribution list for press releases, please contact:
Energy Conversion Devices, Inc.
2956 Waterview Drive
Rochester Hills, Michigan48309
Interested parties are encouraged to read the Company's Annual Report on Form
10-K, particularly the information contained in the section entitled Cautionary
Statement for Purposes of the "Safe Harbor" Provisions of the Private Securities
Litigation Reform Act of 1995. You can learn more about ECD by visiting our web
site at www.ovonic.com, or request information by emailing us at
EquiServe Trust Company, N.A.
P.O. Box 43011
Shareholder Inquiries: 1-800-426-5523
www.equiserve.comUNDERWATER SCENE WITH FISH (STOCK ART)