Energy Conversion Devices press release
http://www.ovonic.com/news_events/5_2_press_releases/20040707.htm

ECD Ovonics Announces Settlement in Patent Infringement Dispute

COBASYS and Panasonic EV Energy to cooperate in the development of
next-generation state-of-the-art nickel metal hydride batteries

Rochester Hills, Mich., July 7, 2004 — Energy Conversion Devices,
Inc. (ECD Ovonics) (NASDAQ:ENER) today announced that it and COBASYS
LLC, its 50-50 manufacturing joint venture with ChevronTexaco
Technology Ventures LLC, have entered into a settlement agreement
with Matsushita Electric Industrial Co., Ltd. (MEI), Panasonic EV
Energy Co., Ltd. (PEVE), and Toyota Motor Corporation with respect to
patent infringement disputes and counterclaims involving nickel metal
hydride (NiMH) batteries before the International Chamber of
Commerce, International Court of Arbitration. Under the terms of the
settlement, no party admitted any liability.

Under the terms of the settlement, COBASYS and PEVE will cross
license each other for current and future patents to avoid possible
future litigation. COBASYS and PEVE have agreed to a technical
cooperation agreement to advance the state-of-the-art of NiMH
batteries which are widely used in hybrid electric vehicles (HEVs).
COBASYS and PEVE have also established a joint development program to
collaborate on the development of next-generation high performance
NiMH batteries for HEVs.

The parties reached an amicable settlement on mutually satisfactory
terms that will help them to meet the requirements of expanding the
HEV market. Details of the settlement are confidential.

For more information about ECD Ovonics, please visit
http://www.ovonic.com

For more information about COBASYS, please visit
http://www.cobasys.com


# # #

This release may contain forward-looking statements within the
meaning of the Safe Harbor Provisions of the Private Securities
Litigation Reform Act of 1995. Such forward-looking statements are
based on assumptions which ECD Ovonics, as of the date of this
release, believes to be reasonable and appropriate. ECD Ovonics
cautions, however, that the actual facts and conditions that may
exist in the future could vary materially from the assumed facts and
conditions upon which such forward-looking statements are based.

Contacts:
Ghazaleh Koefod, Shareholder Relations
Dick Thompson, Media Relations
Energy Conversion Devices, Inc.
248.293.0440

Raymond Wagner
VP Marketing, Cobasys LLC
248.637.7400