“With 5 million hybrids expected on the road by the end of 2010, we feel there is a significant opportunity for an interim aftermarket solution allowing consumers to experience the oil and CO2 reduction benefits that PHEV upgraded vehicles provide,” said David Vieau, President and CEO.

The Hymotion acquisition provides A123Systems access to critical early IP on Plug-in Hybrid systems technology as well as valuable experience with engineering BREMs using A123Systems’ Automotive Class Lithium Ion batteries. Terms were not disclosed.

“The fleet market has been an important testing ground for PHEVs” said Ricardo Bazzarella, Co-founder and President of Hymotion. “The Hymotion systems will continue to be available to the growing fleet market. Over the coming months we will work to reduce delivery times to fleets by standardizing packaging and in anticipation of having a consumer ready system for 2008 introduction.“

“BREM technology is the near-term answer for plug-in hybrid vehicle technology and, thanks to recent joint contracts with NYSERDA and the South Coast AQMD, no company had nearly as much real-world data on engineering aftermarket modules with A123Systems’ batteries as Hymotion,” said Akos Toth, Co-Founder and Director of Engineering of Hymotion. “Joining forces with A123Systems enables us to more efficiently address demand for plug-in hybrid electric vehicles today.”

The Hymotion team has a deep history in the alternative fuel and heavy duty vehicle segments, bringing critical integration and design experience to the group. This valuable experience includes work with OEMs such as Daimler-Chrysler and BMW, as well as heavy duty manufacturer Orion Bus Industries, and alternative fuels companies, Hydrogenics and Quantum Technologies.

The A123Systems Nanophosphate™ cells are next-generation lithium-ion batteries designed for exceptional power, safety and life. A123System’s Automotive Class Lithium Ion cells have been optimized specifically for use in HEV and PHEV applications.

About Hymotion
Hymotion, the Canadian subsidiary of A123Systems, is the leading provider of aftermarket plug-in hybrid conversions with their Battery Range Extender Modules (BREMs). Hymotion brings over ten years of experience in the alternative transportation industry. As a green technology company, their mission is to enable hybrid owners to maximize the fuel efficiency of their vehicles and minimize their carbon footprint. Hymotion’s BREMs are powered by A123Systems’ batteries.

About A123Systems
A123Systems is one of the world’s leading suppliers of high-power lithium ion batteries. The company’s patent pending Nanophosphate™ technology enables its batteries to deliver previously unattainable levels of power, safety and life. Applicable to a wide range of industries, A123Systems’ products remove many traditional technology constraints to provide OEMs expanded flexibility in system design. With the largest lithium ion R&D team in North America, world-class expertise and management, and global manufacturing operations, A123Systems’ Automotive Class Lithium Ion™ batteries are leading the automotive movement towards platform electrification. Founded in 2001 and headquartered in Massachusetts, A123Systems’ proprietary nanoscale electrode technology is built on initial developments from the Massachusetts Institute of Technology. A123Systems' wholly owned subsidiary T/J Technologies (Ann Arbor, Michigan) is nationally recognized for new materials development and cutting-edge research.

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