Axion Power Reports 2009 Year-End Results

NEW CASTLE, Pa., March 30 /PRNewswire-FirstCall/ -- Axion Power International, Inc. (OTC Bulletin Board: AXPW), the developer of advanced PbC® batteries, today announced financial results for its year ended December 31, 2009.

Sales for 2009 totaled $1.8 million compared to $679,559 in 2008, an increase of 157 percent, primarily from the sale of legacy lead-acid batteries and, for the first time, PbC test batteries sold to a strategic partner. The net loss for 2009 was $18.6 million, or a $0.67 loss per basic and diluted share, compared to the net loss of $10.6 million, or a $0.46 loss per basic and diluted share for 2008. Of that loss, $10.6M was attributable to non cash expense due to derivative revaluation and beneficial conversion features of the preferred stock.  All preferred stock was converted in 2009 as part of the $26.2M equity raise, so the preferred stock has been retired and the associated dividends eliminated.  With the exception of R&D expense, which the Company feels strongly about increasing to maintain its advantage in the industry, all other SG&A expenses decreased in 2009.  The total reduction was approximately $1.3M or 12%. "Our core technology and our PbC batteries continue to demonstrate their capabilities in a variety of important applications," said Axion Power CEO Thomas Granville. "Our strategic partners include Exide Technologies, one of the largest battery suppliers in the world with a significant presence in transportation globally.  But whether it's the micro or mild hybrid vehicle market, off-grid storage of renewable energy, grid balancing or buffering, remote power sourcing or military applications, we feel PbC will prove its value as a low-cost, fully recyclable energy storage technology. Today we are developing solar power storage systems, solar powered electrical charging stations and new products for 'Smart Grid' systems, all with potentially large, global markets and with important strategic partners.

"We made excellent progress in 2009 in a number of key areas and our entire team worked diligently to overcome the business and technical challenges we faced in achieving our goals.  We are continuing to work with some very large potential customers in testing and pilot programs, and our goal is to be able to launch some noteworthy contracts this year," Granville concluded.

Company accomplishments in 2009 and the first few months of 2010 include:

• Award of a $300,000 Pennsylvania CFA state grant in February 2010, to develop a renewable solar energy storage system based on its proprietary PbC PowerCube battery technology to be used within a "Smart Grid" system.
• Completion of a $26 million common stock offering in late December 2009, which significantly strengthened the Company's balance sheet.  Proceeds of the offering will be used for additional electrode production lines, to add to the quality staff already in place and for working capital.
• Award of a $250,000 grant from the Pennsylvania Energy Development Authority in December 2009 to assist in development of a 500 kilowatt Axion PowerCube™ battery energy storage system using PbC battery technology.
• Completion in the 2009 third quarter of an initial phase in the Company's four-year global supply agreement with Exide Technologies. The two companies have jointly established specifications and test protocols for Axion batteries that will be manufactured for multiple markets including hybrid vehicles and industrial energy storage and renewable power.
• The announcement in August 2009 by the U.S. Department of Energy that it had awarded a $34.3 million stimulus award to Exide Technologies with Axion Power International for the development of lead carbon technology for micro-hybrid and mild-hybrid vehicle applications  as well as other potential storage applications.
• The award in January 2009 of an $800,000 first-year grant from the Pennsylvania Alternative Fuels Incentive Grant program as part of the State's overall effort to invest in businesses that are creating important and innovative clean energy and bio-fuels technologies.  Award proceeds will be used to demonstrate the advantages the Axion proprietary PbC(TM) battery technology provides in a variety of electric vehicle types including: hybrids (HEVs), such as the popular Toyota Prius; "plug-ins" (PHEVs) used in commuter, delivery and other vehicles; and in EV's and converted (from combustion engine operation) EV's.

As of December 31, 2009, Axion Power's balance sheet showed cash and equivalents of $23.3 million, up from $3.1 million at December 31, 2008.  Current assets as of December 31, 2009 were $24.8 million, the current ratio was 15.9:1 and working capital was $23.2 million. Total assets were $29 million, there was less than $650,000 in long term debt and stockholders' equity was $24.3 million.  

Conference Call / Webcast

Today at 11:00 am ET (8 a.m. Pacific) a conference call will be held to review the AXPW results. Interested parties should call 866-804-6922 (domestic) or 857-350-1668 (international), with passcode 26756887 to access the call. You may also access this call via the Internet at:

http://phx.corporate-ir.net/playerlink.zhtml?c=155732&s=wm&e=2976877

For those who are unavailable to listen to the live broadcast, a replay will be available for 90 days and can be accessed by dialing 888-286-8010 (domestic) and 617-801-6888 (international) and using passcode 87823892.

About Axion Power International, Inc.

Axion has developed and patented a next generation energy storage device that won the prestigious Frost & Sullivan Technology Award for North America in the field of lead-acid batteries. According to Frost & Sullivan, Axion's new PbC® batteries have "the potential to revitalize the lead-acid battery industry by breathing new life into an established technology that is not well suited to the requirements of important new applications like hybrid electric vehicles and renewable power."

Axion Power International, Inc. is the industry leader in the field of lead-acid-carbon energy storage technologies. Axion believes this new battery technology is the only class of advanced battery that can be assembled on existing lead-acid battery production lines throughout the world without significant changes to production equipment and fabrication processes. It also believes it will be able to manufacture carbon electrode assemblies in volume at low cost using standard automated production methods that are commonly used in other industries. If and when its electrode manufacturing methods are fully developed, Axion believes it will be able to sell carbon electrode assemblies as virtual plug-and-play replacements for lead-based negative electrodes used by all other lead-acid battery manufacturers. Axion's future goal, after filling their plant's lead-carbon battery production capacity, is to become the leading supplier of carbon electrode assemblies for the global lead-acid battery industry.

For more information, visit www.axionpower.com

SOURCE Axion Power International, Inc.