A123 Systems Expands Partnership With IHI Corporation to Meet Increasing Demand for Lithium Ion Battery Technology in Japanese Transportation Market

IHI to License A123’s Nanophosphate(R) Battery System Technology to Develop Solutions for Passenger and Commercial Electric Vehicles in Japan; IHI Will Make $25 Million Equity Investment in A123
WALTHAM, Mass., Nov. 7, 2011 (CRWENewswire) — A123 Systems (Nasdaq:AONE), a developer and manufacturer of advanced Nanophosphate(R)lithium ion batteries and systems, today announced that it has expanded its business development partnership with IHI Corporation, one of the largest industrial equipment manufacturers in Japan, to more strategically meet increasing demand for A123’s solutions in the Japanese transportation market. A123 will license its battery system technology to IHI, which will develop solutions for passenger and commercial electric vehicles in Japan using A123 battery cells. In addition, IHI will make a $25 million equity investment in A123.
“Since first partnering with A123 in 2009, we have seen increasing interest in A123’s advanced lithium ion battery technology for transportation and other applications. We believe that expanding our partnership enables IHI to address this growing market opportunity by commercializing innovative solutions powered by A123’s batteries,” said Taizo Suga, Associate Director, General Manager, Corporate Development Division at IHI. “A123’s Nanophosphate lithium ion chemistry has proven to be among the highest-performing, most durable and longest lasting battery technologies we’ve seen, which we feel makes them optimal for vehicle electrification. We look forward to working closely with A123 as a technology partner, and we also believe our equity investment in A123 will demonstrate a meaningful commitment to our expanded strategic business relationship.”
Under the terms of a technology license agreement, IHI will be the exclusive provider of A123 battery systems and modules in the Japanese transportation market, licensing A123’s advanced battery system technol! ogy and systems integration expertise to manufacture solutions for electric vehicles. It is expected that this will enable A123 to leverage the customer relationships IHI has developed with leading Japanese automakers. A related product supply agreement also establishes A123 as the exclusive supplier of lithium ion battery cells to IHI for transportation as well as non-transportation applications that IHI may develop as a future value-added reseller, which has the potential of creating new market opportunities for A123 technology across IHI’s global businesses.
“IHI is a well-established technology supplier to the Japanese auto industry , so we believe that expanding our relationship provides us with a strong strategic partner to help us more effectively and efficiently deliver our solutions to the Japanese transportation market,” said Jason Forcier, vice president of the Automotive Solutions Group at A123. “Additionally, we believe that we have a competitive advantage as the exclusive provider of lithium ion battery cells to IHI for the licensed applications as well as potential additional applications beyond transportation, allowing us to capitalize on new market opportunities introduced by IHI’s robust global network of businesses.”
About A123 Systems
A123 Systems, Inc. (Nasdaq:AONE) is a leading developer and manufacturer of advanced lithium-ion batteries and energy storage systems for transportation, electric grid and commercial applications. The company’s proprietary Nanophosphate(R) technology is built on novel nanoscale materials initially developed at the Massachusetts Institute of Technology and is designed to deliver high power and energy density, increased safety and extended life. A123 leverages breakthrough technology, high-quality manufacturing and expert systems integration capabilities to deliver innovative solutions that enable customers to bring next-generation products to market. For additional information please vis! it www.a 123systems.com.
Safe Harbor Disclosure
This press release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that are subject to risks, uncertainties and other factors, including statements with respect to the anticipated benefits of the expanded strategic business relationship, the market for alternative energy transportation in Japan and the timing of expected production and availability of IHI’s solutions based on A123’s system technology and their anticipated performance, benefits and features, as well as the expected demand by IHI for battery cells to be supplied by A123, and the expected performance of A123’s battery technology and lithium ion battery cells . Among the factors that could cause actual results to differ materially from those indicated by such forward-looking statements are: delays in customer and market demand for and adoption ofIHI’s battery system products, delays in the development, production and supply of IHI’s products, adverse economic conditions in general and adverse economic conditions specifically affecting the markets in which A123 and IHI operate and other risks detailed in A123 Systems’ 10-Q for the quarter ended June 30, 2011 and other publicly available filings with the Securities and Exchange Commission. All forward-looking statements reflect A123’s expectations only as of the date of this release and should not be relied upon as reflecting A123’s views, expectations or beliefs at any date subsequent to the date of this release.

McCann and His Team: Lots of Merrill Lynch

Bob McCann, the former head of Merrill Lynch's brokerage force, joined UBS in November 2009, when it had about 7,300 advisors in the Americas. And the recently hired head of wealth management for the Americas is now putting together a team to help him boost results.
In a January 19 memo, in which he describes his effort in forming a "Renewal Team," McCann says that leaders are being hired to make changes "in how we interface with our clients and financial advisors, with particular focus on streamlining processes, increasing efficiencies and driving the business forward."
The new hires and leadership shifts include:
- Bob Mulholland, formerly of Merrill Lynch, will now head UBS Americas' Wealth Management Advisor Group (replacing Jamie Prince);
- Brian Hull, another ex-Merrill Lynch executive, will head Wealth Management Partnerships;
- John Brown, head of Wealth Management Solutions;
- David Satler, chief of staff - as well as head of Human Resources; and
- Paula Polito, another Merrill Lynch veteran, is now chief marketing officer.
Other executive changes effect:
- Jamie Price, who moves to an advisory role for the firm, "working with Bob Mulholland and his team, while he considers new career opportunities;"
- Jim Hausmann, who has been serving as interim head of Products and Services for the past six months, will assume a leadership role in the new Wealth Management Solutions organization, reporting to John Brown; and
- Kim Jenson takes on a new senior role and will be responsible for Wealth Management Advisor communications, reporting to Paula Polito.