Energy Conversion Extends Supply

Energy Conversion Devices Extends Supply Agreement Through 2011

June 9, 2009:  Energy Conversion Devices (ENER - Analyst Report) announced that it extended its supply agreement with EnergyPeak. EnergyPeak expects to continue its strong growth rate by purchasing up to 12MW of UNI-SOLAR laminates from ECD through the end of 2011. These laminates will be incorporated into building-integrated photovoltaic systems on standing seam metal commercial roofs.

EnergyPeak will integrate ENER’s UNI-SOLAR branded PV laminates into   building-integrated PV (BIPV) systems in standing seam metal commercial rooftop applications. The result is an effective solar roofing option that can be specified, bid and installed with little effort and investment.

Since EnergyPeak’s original agreement with ECD in 2007, the two companies have been successful in establishing BIPV standards for standing seam metal roofs.  The extended supply agreement will likewise extend ENER’s revenue and earnings growth.

PV laminates are applied in the factory and arrive at the project site already integrated into the roof. Once installed, the building benefits from the solar roofing system and are effective at reducing energy consumption. The pre-designed, affordable and efficient solar roofing systems are currently available to owners and architects through a variety of EnergyPeak providers comprised of nationwide   standing seam manufacturers.

EnergyPeak and Energy Conversion Devices are already working together to increase UNI-SOLAR sales through a network of approximately 30 metal roofing providers who are experts in rooftop installations. EnergyPeak's metal roofing products using ENER’s laminates promote the adoption of solar rooftop solutions across the United States.

Overall, in other developments, we remain optimistic about ENER’s long-term potential success in the high growth alternative energy industry, given increased activity in solar power projects, federal incentives, and extension of the federal ITC.

Looking forward, the story will continue with a geographically diversified sales pipeline, reducing cost per watt, declining polysilicon prices, committed supply agreements and improving material costs through expansion of its supplier base, although in the near-term, a dilapidated market lead to under-utilization of capacity and affected margins, force the company to suspend its expansion plans.

Note the stock’s high volatility, pending sale of its Cobasys joint venture, tightening credit markets, and high pre-production costs, collectively show potential for moderate-to-high returns – yet with high risk. Accordingly, we maintain a speculative BUY recommendation on ENER common stock with an increased six-month target price of  $20.00, representing 17.5%% upside potential.

Energy Conversion Devices, Inc. (ECD) is a leader in building integrated and commercial rooftop photovoltaics, one of the fastest growing segments of the solar power industry. The company manufactures and sells thin-film solar laminates that convert sunlight to energy using proprietary technology. ECD's UNI-SOLAR®    brand products are unique because of their flexibility, light-weight, lease of installation, durability and efficiency.

EnergyPeak was formed by CENTRIA Services Group in 2007 in partnership with United Solar in order to improve the efficient and affordable integration of solar technology with standing seam metal roofing, as well as promote the adoption of building integrated photovoltaic solar standing seam.

Pittsburgh-based CENTRIA Services Group is a division of CENTRIA, an  international company and a U.S. supplier of architectural metal wall and roofing systems used in commercial/industrial projects. Since 1906, CENTRIA professionals have provided quality products and services for architectural and construction firms worldwide.