Axion Power™ Reports 2010 Second Quarter, Six Month Results

NEW CASTLE, Pa., Aug. 16 /PRNewswire-FirstCall/ -- Axion Power International, Inc. (OTC Bulletin Board: AXPW), the developer of advanced PbC® batteries and energy storage systems, today announced results for its second quarter ended June 30, 2010.

Sales for the second quarter of 2010 were $0.5 million with a net loss of $1.9 million or $0.02 loss per share, an overall improvement from the previous year's second quarter results, which were sales of $0.3 million with a net loss of $5.2 million or $0.20 loss per share.  The increase in sales was evenly split between traditional lead acid and PbC products.

At June 30, 2010 cash, net of debt, was $17.6 million. Total assets were $25.6 million and total stockholders' equity was $21.5 million.

"The second quarter of 2010 was notable for progress with real-world applications such as the new co-development project with Norfolk Southern to outfit battery systems for electric locomotives, and the ongoing work with Envision Solar on EV charging stations.  Inside Axion Power, significant progress was made in the design of the second-generation manufacturing line for automated carbon electrode production. Several key management positions were filled including Chief Financial Officer, Chief Operating Officer and Vice President of Manufacturing Engineering," said Axion Power CEO Thomas Granville.

"Our core technology is the heart of our value proposition.  We feel our PbC batteries offer superior performance and long-life characteristics when compared to even the most advanced lead-acid batteries.  PbC batteries will be a low-cost alternative when compared to batteries in the headlines such as the costly Li-ion and NiMH, both of which have unproven recyclability as well.  We will be presenting at an international conference in Turkey next month, and as we get closer to that date, we will be announcing our co-presentation with one of the largest automobile manufacturers in the world. We continue to work with our strategic partners, and to engage new partners, as we move to commercialize our products in hybrid automotive vehicles, hybrid trains, military applications and storage applications using our Power Cube," Granville concluded.

In July, the Company resolved long-standing litigation related to the Mercatus transaction that, among other positives for the Company, resulted in the recovery of all legal costs associated with the three year litigation. July also saw the Company complete the final phase of an $800,000 grant project funded by the Commonwealth of Pennsylvania.  Subsequent to the end of the second quarter, we had the formal kickoff of our $1,000,000 Office of Naval Research project and are currently engaged in this work for the United States military.

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 877-485-3104 (domestic) or 201-689-8579 (international), to access the call. You may also access this call via the Internet by visiting the company's website at www.axionpower.com and clicking on the Investors link. Access to the webcast will be available for 90 days.

For those who are unavailable to listen to the live broadcast, a replay will be available for 7 days and can be accessed by dialing 877-660-6853 (domestic) and 201-612-7415 (international) and using passcode 354903 and account number #356.

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

Forward-looking Statements

Certain statements in this Press Release are "forward-looking statements" within the meaning of the Private Securities Litigation Act of 1995. These forward-looking statements are based on our current expectations and beliefs and are subject to a number of risk factors and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. Such risks and uncertainties include the risk for the Company to complete its development work, as well as the risks inherent in commercializing a new product (including technology risks, market risks, financial risks and implementation risks, and other risks and uncertainties affecting the Company), as well as other risks that have been included in filings with the Securities and Exchange Commission, all of which are available at www.sec.gov. We disclaim any intention or obligation to revise any forward-looking statements, including, without limitation, financial estimates, whether as a result of new information, future events, or otherwise.

SOURCE Axion Power International, Inc.