China BAK Battery Announces Strategic Cooperation Agreement with Lenovo and Manufacturing Agreement with A123 Systems

    SHENZHEN, China, Feb. 9 /Xinhua-PRNewswire/ -- China BAK Battery, Inc.
 (OTC Bulletin Board:   CBBT), one of the largest manufacturers of Lithium Ion
 (Li-ion) battery cells, today announced that it has signed manufacturing
 agreements with two Original Equipment Manufacturers (OEMs), including Lenovo
 Group Ltd., a leading global manufacturer serving the PC and cell phone
 markets, and A123 Systems, an emerging developer of high power Lithium Ion
 battery technology based on patented nanotechnology licensed from the
 Massachusetts Institute of Technology (MIT). Details include:
 
     -- The Company signed a Strategic Cooperation Agreement with Lenovo. This
        agreement calls for both companies to jointly contribute and share
        resources to further product development efforts. The company has been
        a supplier of Lithium Ion battery cells for Lenovo cell phone
        applications since August 2005. The Strategic Cooperation Agreement was
        signed to expand the current relationship and facilitate the
        development of new battery solutions for Lenovo in the portable and
        notebook PC markets.
 
     -- China BAK Battery has also formed a contract manufacturing partnership
        with A123 Systems, an emerging supplier of Nano-Phosphate Li-ion
        batteries based on patented technology developed at MIT.  Since early
        2005, China BAK Battery and A123 have collaborated at their Shenzhen
        facilities to design, develop and implement an advanced mass production
        line to exclusively manufacture first products for A123. High volume
        production has commenced and these products have been rigorously tested
        to meet the most stringent Tier 1 OEM quality requirements.  A123 high
        power batteries will be used in a variety of applications including
        power tools, medical devices and hybrid electric vehicles which are all
        respective growth areas for the Li-ion battery market.
 
     "These new manufacturing agreements validate the success of our strategy
 to increase our presence in traditional Lithium Ion applications by expanding
 our OEM customer base and penetration while also partnering with leading edge
 technology developers," commented Xiangqian Li, the Company's Chief Executive
 Officer. "By partnering with leading researchers and manufacturers, we are
 leveraging our high quality, low cost manufacturing infrastructure, expanded
 capacity and capabilities to position the Company for continued growth during
 2006. Forging relationships with industry leaders like Lenovo, and technology
 leaders like A123 Systems, shows our commitment to diversify and strengthen
 both our customer and revenue base. During 2005, we raised approximately
 $60 million, which improved our working capital position while enabling us to
 significantly expand our manufacturing facilities. Resulting from this
 expansion, our capacity for cell phone battery cells has increased from
 15 million to 22 million pieces per month. Additionally, we also established
 volume production capability for lithium polymer battery cells, constructed a
 production line for a new 'high power' battery cell initially directed towards
 the cordless power tool market and other applications while beginning the
 implementation of a high volume lap top computer battery cell manufacturing
 line. These successes have enabled us to maintain a leading position in our
 industry, while winning new business and growing our base of International
 revenues. We are extremely pleased with our achievements during 2005 and
 believe the company is well positioned to deliver another record year in
 fiscal 2006."
 
     Management Conference Call
     Management will conduct a conference call to discuss the Company's first
 quarter financial results and provide a corporate update. The conference call
 will take place at 8:30 a.m. Eastern Time, on Friday, February 10, 2006.
 Anyone interested in participating should call 1-888-417-2310 if calling
 within the United States or 1-973-935-2981 if calling internationally. There
 will be a playback available until February 17, 2006. To listen to the
 playback, please call 1-877-519-4471 if calling within the United States or
 1-973-341-3080 if calling internationally. Please use pin number 7022264 for
 the replay.
 
     This call is being web cast by ViaVid Broadcasting and can be accessed at
 China BAK Battery's website at http://www.bak.com.cn/en . The web cast may
 also be accessed at ViaVid's website at http://www.viavid.net . The web cast
 can be accessed until March 10, 2006 on either site. To access the web cast,
 you will need to have the Windows Media Player on your desktop. For the free
 download of the Media Player please visit:
 http://www.microsoft.com/windows/windowsmedia/en/download/default.asp .
 
     About China BAK Battery
     China BAK Battery, Inc. is a commercial manufacturer of standard and
 customized Lithium Ion (Li-ion) rechargeable battery cells for use in various
 portable electronic applications, including cellular phones, MP3 players,
 laptop computers, Bluetooth headsets, Power Tools, and other general
 industrial applications. BAK utilizes its low-cost, 1.9 million square foot,
 world class manufacturing operation in Shenzhen, PRC, which was recently
 expanded to produce new proprietary products. BAK is the largest Li-ion
 replacement battery cell manufacturers in China and one of the top ten in the
 world.
 
     About Lenovo Group Limited
     Incorporated in 1988 in Hong Kong, the Company is the largest personal
 computer manufacturer in the People's Republic of China, and as of 2004 is the
 third largest in the world, which includes the purchase from of IBM's computer
 division. The company's US headquarters are in Purchase, New York. In addition
 to desktop and laptop computers, Lenovo sells servers, handheld computers,
 imaging equipment and mobile phone handsets. Lenovo also provides information
 technology integration and support services, and its QDI unit offers contract
 manufacturing.
 
     Forward-Looking Statements
     This press release contains certain statements that may include "forward
 looking statements" within the meaning of Section 27A of the Securities Act of
 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as
 amended.  All statements, other than statements of historical fact included
 herein are "forward-looking statements" including statements regarding China
 BAK Battery, Inc. and its subsidiary companies business strategy, plans and
 objective and statements of non-historical information.  These forward looking
 statements are often identified by the use of forward-looking terminology such
 as "believes," "expects" or similar expressions, involve known and unknown
 risks and uncertainties. Although China BAK Battery, Inc. believes that the
 expectations reflected in these forward-looking statements are reasonable,
 they do involve assumptions, risks and uncertainties, and these expectations
 may prove to be incorrect. You should not place undue reliance on these
 forward-looking statements, which speak only as of the date of this press
 release. China BAK Battery, Inc.'s actual results could differ materially from
 those anticipated in these forward-looking statements as a result of a variety
 of factors, including those discussed in China BAK Battery, Inc.'s periodic
 reports that are filed with and available from the Securities and Exchange
 Commission. All forward-looking statements attributable to China BAK Battery,
 Inc. or persons acting on its behalf are expressly qualified in their entirety
 by these factors. Other than as required under the securities laws, China BAK
 Battery, Inc. does not assume a duty to update these forward-looking
 statements.
 
     For more information, please contact:
 
     Company Contact:
      Jim Groh
      Tel:   +1-843-342-7809
      Email: jim@bakbattery.com
 
     Investor Relations Contact:
      Matt Hayden/Brett Maas
      Tel:   +1-843-272-4653
      Email: matt@haydenir.com
 
 

SOURCE China BAK Battery, Inc.

Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

 

PR Newswire Membership

Fill out a PR Newswire membership form or contact us at (888) 776-0942.

Learn about PR Newswire services

Request more information about PR Newswire products and services or call us at (888) 776-0942.