Alcoa AFL Automotive and Altair Nanotechnologies to Jointly Develop Battery Pack System

Alcoa AFL Automotive and Altair Nanotechnologies Inc. (Altairnano) announced today that they have signed an agreement to develop a battery pack system for medium-duty hybrid trucks. The collaboration brings together Altairnano's innovative nano-titanate battery technology and AFL Automotive's expertise in vehicle electrical distribution systems, power management electronics and its substantial presence as a supplier to the automotive market. Alcoa is also a major supplier of light-weight, high-strength aluminum components to the automotive industry that improve performance while increasing fuel efficiency.

The agreement provides for the delivery of an integrated battery pack system for the medium-duty hybrid truck market using Altairnano's NanoSafe™ battery technology and AFL Automotive's electrical interconnect and application technology to integrate the battery pack system into the vehicle's electrical architecture.

"This presents a new business opportunity for AFL Automotive as we pursue adding power storage to the overall advanced power management system that we currently supply the automotive industry," said Allen Zwierzchowski, President, Worldwide Components Alcoa AFL Automotive.

"This new collaboration provides Altairnano with the opportunity to expand the market for our novel battery technology. It furthers demonstrates the technology potential of our NanoSafe™ nano-titanate batteries," said Altairnano President and CEO Alan J. Gotcher Ph.D.

The scope of the joint development agreement involves system design, development and prototyping, which is expected to be completed in early 2007.