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EnerSys Awarded Contract for Nearly $5 Million by US Navy for Advanced Submarine Battery Development

READING, Pa., April 11 /PRNewswire-FirstCall/ -- EnerSys (NYSE: ENS), the world's largest manufacturer, marketer and distributor of industrial batteries, announced that it has been awarded a $4.6 million contract by the US Navy for the continued development of advanced submarine batteries based on EnerSys' proprietary thin plate pure lead (TPPL) technology. The contract is part of an ongoing effort by the US Navy to retrofit the entire nuclear submarine fleet with valve-regulated lead-acid (VRLA) batteries in place of flooded lead-acid batteries.

Sanjay Deshpande, EnerSys vice president of aerospace and defense, remarked: "EnerSys began this development program in March 2004 with a $1 million contract. We were awarded this additional contract because the Navy is pleased with the progress we have demonstrated in both product and process design. We anticipate our thin plate pure lead batteries will out-perform the batteries the Navy is currently buying; they are considerably more powerful and require significantly less maintenance."

EnerSys's commitment to continue the development program at the company's highly automated facility in Warrensburg, Missouri is enthusiastically supported by Senator Kit Bond (R, MO). The senator noted, "We are proud that a Missouri-based facility is producing such effective and productive battery technology for the US Navy submarine program."

The development contract is administered by Crane Division, Naval Surface Warfare Center (NSWC Crane) in Crane, Indiana. Following successful completion of this developmental effort, EnerSys will have the opportunity to compete for future US Navy VRLA submarine battery production contracts. EnerSys currently provides batteries to defense markets around the world for tactical vehicles on the ground, aircraft in the air and ships and submarines in the sea.


EDITOR'S NOTE: EnerSys, the world leader in stored energy solutions for industrial applications, manufactures and distributes reserve power and motive power batteries, chargers, power equipment, and battery accessories to customers worldwide. Motive power batteries are utilized in electric fork trucks and other commercial electric-powered vehicles. Reserve power batteries are used in the telecommunications and utility industries, uninterruptible power suppliers, and numerous applications requiring standby power. The company also provides aftermarket and customer support services to its customers from over 100 countries through its sales and manufacturing locations around the world.

 

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Statements in this press release regarding EnerSys's business which are not historical facts are "forward-looking statements" that involve risks and uncertainties. For a discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see "Risk Factors" in the Company's Annual Report or Form 10-K for the most recently ended fiscal year.