NXCELL Batteries Formed to Target 42V Autos

April 22, 2003 by Jeff Shepard

Power Technologies, Inc. in conjunction with B.C. Research, Inc. is pleased to announce a master license agreement with NXCELL Batteries, Inc. an Advanced Battery Technology Co.

Under the terms of the master license agreement, Power Technologies will hold a 65% ownership of this privately held business with B.C. Research maintaining a 35% ownership. In addition, Power Technologies will receive the first $2 million USD from any sub-license granted by NXCELL and will also receive 50% of all royalties and fees occurring from NXCELL sub-licenses.

Power Technologies shall hold a direct interest in any future joint ventures entered into as a result of the master license agreement equal to that of NXCELL. NXCELL shall pay to Power Technologies a fee of $120,000 per year for three years, subject to certain conditions.

With respect to the Power Technologies master licensee agreement, NXCELL Batteries, Inc. has a strong commercialization strategy with clear focus on emerging markets, including hybrid and automotive applications of the near future, where NXCELL could become a dominant player.

Power Technologies and NXCELL will aim to forge a world-class company and development team with access to international companies who use and distribute batteries. By focusing on near-term opportunities for hybrid-/electrics and mini-hybrid (42 volt), electric hybrid vehicle applications, marine, aerospace, and industrial sectors, management's goal is to create a company with tremendous potential in the near future.