Maxwell Technologies Expanding Ultracapacitor Production Capacity With New Electrode Plant and Increased Product Assembly Capabilities

SAN DIEGO, March 1, 2012  /PRNewswire/ -- Maxwell Technologies, Inc. (Nasdaq: MXWL) is outfitting a new ultracapacitor electrode production facility that will double the company's current electrode capacity by year end, and is increasing internal and outsourced  assembly capabilities to ensure that it can meet rapidly increasing worldwide demand for ultracapacitor products.

"Maxwell has produced more than 20 million ultracapacitor cells since setting up initial high-volume production," said David Schramm, the company's president and chief executive officer. "With ultracapacitor sales having grown by more than 500 percent since 2007, we are moving aggressively to make sure we stay a step ahead of customer demand."

The new electrode plant will be housed in a 123,000 square-foot facility the company has leased in Peoria, Arizona, near Phoenix. To date, all of the proprietary electrode material used in Maxwell ultracapacitor products has been produced at the company's San Diego facility. 

In 2011, Maxwell and an assembly partner built and shipped more than 2 million large cell ultracapacitors, and a new large cell assembly line scheduled to come on line later this year will increase current capacity by 50 percent. Large cells are used mainly in hybrid and electric public transit vehicles for braking energy recuperation and torque assist. The company also supplies large cells to Continental AG, a global Tier 1 auto parts supplier, for a stop-start idle elimination system introduced by PSA Peugeot Citroen in Europe for the 2011 model year.

Working with another contract assembly partner, Maxwell brought on line a high-volume assembly line in mid-2010 for its redesigned, 350-farad "D-cell" ultracapacitor products, which are used mainly in wind turbine blade pitch mechanisms.

A third contract manufacturer assembles Maxwell's HC family of small cell products, which range from one to 150 farads, and are used mainly in industrial electronics applications.

The company also has expanded production capacity for its postage stamp-size, 10-farad PC-10 ultracapacitor cell to satisfy rapidly increasing demand for a backup power application in solid state drives used in enterprise computing systems. Previously, Maxwell also has delivered several million PC 10s to power wireless transmitters in automated electric utility meters and other devices.

Unlike batteries, which produce and store energy by means of a chemical reaction, Maxwell's ultracapacitor products store energy in an electric field. This electrostatic energy storage mechanism enables ultracapacitors to charge and discharge in as little as fractions of a second, perform normally over a broad temperature range (-40 to +65C),  operate reliably up to one million or more charge/discharge cycles and resist shock and vibration. Maxwell offers ultracapacitor cells ranging in capacitance from one to 3,000 farads and multi-cell modules ranging from 16 to 125 volts. For more information on ultracapacitor products please visit our web site, Maxwell.com.

Maxwell is a leading developer and manufacturer of innovative, cost-effective energy storage and power delivery solutions. Our ultracapacitor products provide safe and reliable power solutions for applications in consumer and industrial electronics, transportation and information technology. Our CONDIS® high-voltage grading and coupling capacitors help to ensure the safety and reliability of electric utility infrastructure and other applications involving transport, distribution and measurement of high-voltage electrical energy. Our radiation-mitigated microelectronic products include power modules, memory modules and single board computers that incorporate powerful commercial silicon for superior performance and high reliability in aerospace applications.  For more information, please visit our website: Maxwell.com.

Forward-looking statements: Statements in this news release that are "forward-looking statements" are based on current expectations and assumptions that are subject to risks and uncertainties. Such risks, uncertainties and contingencies include, but are not limited to, the following:

• risks related to our international operations including, but not limited to, our ability to  comply with the changing rules and regulations in countries where our business is conducted, our ability to oversee and control our foreign subsidiaries and their operations, our ability to manage foreign currency exchange rate fluctuations, and our ability to continue to comply with the U.S. Foreign Corrupt Practices Act and anti-bribery laws of foreign jurisdictions and the terms and conditions of our settlement agreements with the Securities and Exchange Commission and the Department of Justice.
• our ability to remain competitive and stimulate customer demand by successfully introducing new products, and educating prospective customers on the products we offer;
• dependence upon the sale of products to a small number of customers and vertical markets, some of which are heavily dependent on government funding or government subsidies which may or may not continue in the future;
• successful acquisition, development and retention of key personnel;
• our ability to effectively manage our reliance upon certain suppliers of key component parts, specialty equipment and logistical services;
• our ability to match production volume to actual customer demand;
• our ability to manage product quality problems;
• our ability to protect our intellectual property rights and to defend claims against us;
• our ability to effectively identify, enter into, manage and benefit from strategic alliances;
• a catastrophic event at any of our facilities;
• a technology systems failure, network disruption, or breach in data security; and,
• our ability to obtain sufficient capital to meet our operating or other needs.

For further information regarding risks and uncertainties associated with Maxwell's business, please refer to the "Management's Discussion and Analysis of Financial Condition and Results of Operations" and "Risk Factors" sections of our SEC filings, including, but not limited to, our annual report on Form 10-K and quarterly reports on Form 10-Q. Copies of these documents may be obtained by contacting Maxwell's investor relations department at (858) 503-3434 or at our investor relations website: http://investors.maxwell.com/phoenix.zhtml?c=94560&p=irol-sec. All information in this release is as of March 1, 2012. The company undertakes no duty to update any forward-looking statement to reflect actual results or changes in the company's expectations.

SOURCE Maxwell Technologies, Inc.