Boston-Power Expands Mass Manufacturing Through Strategic Partnership with GP Batteries

WESTBOROUGH, Mass. & HSINCHU, Taiwan—(BUSINESS WIRE)—February 24, 2009— Boston-Power, Inc., the rapidly growing provider of next-generation Lithium-ion (Li-ion) batteries, today announced that it is substantially expanding mass production of its Sonata rechargeable Li-ion batteries through a strategic partnership with GP Batteries. Terms of the deal were not disclosed.

GP Batteries is the top consumer battery manufacturer in Greater China. It is a member of Gold Peak Industries (Holdings) Limited (SEHK code: 40), a publicly traded company established in 1964 that has operations worldwide.

Under the five-year agreement, GP Batteries will dedicate its Li-ion battery factory in Taiwan exclusively to produce Sonata batteries. Using technology and material supplied by Boston-Power, the factory will double its monthly production in 2009. Boston-Power and GP Batteries will also undertake a joint R&D effort to expand even further the capacity and performance of Sonata cells.

With GP Batteries as one of the world’s most advanced battery manufacturers, Sonata will benefit from Six Sigma processes, world-class shop floor control, and a unique, real-time quality control feedback and management system that is proprietary to Boston-Power and establishes a new benchmark for battery production.

“GP Batteries has built a global reputation for understanding the most critical trends in battery technology, and we’re constantly extending our leadership,” said GP Batteries Chairman and Chief Executive Andrew Ng. “We immediately recognized the power of the Sonata technology when it was still under development, and were equally impressed with Boston-Power’s vision, leadership team and R&D capabilities. We’re pleased to expand upon the relationship we established in 2007 and look forward to playing a pivotal role in delivering the next generation of Lithium-ion batteries to market.”

The longest lasting, fastest charging and only Green-certified rechargeable Li-ion notebook computer battery, Sonata delivers like-new performance for three years versus current batteries that start to fade in three to six months. It will come to the market first next month from HP, the world’s top provider of notebook PCs. The result of a three-year relationship between HP and Boston-Power, HP’s new Enviro Series Program notebook batteries are based on Sonata cells, feature the industry’s longest warranty (three years) and support a wide range of consumer PC models.

“Boston-Power has redesigned the notebook computer battery from the ground up to make it a source of customer satisfaction by providing the kind of experience mobile consumers and business users want,” said Boston-Power Founder and CEO Dr. Christina Lampe-Onnerud. “We’re thrilled to be expanding mass production of Sonata with a world-class partner like GP Batteries.”

Sonata is the only Li-ion notebook computer battery architected to last the typical three-year life of a notebook computer. It also recharges three times faster – to 80 percent capacity in 30 minutes or 40 percent in 10 minutes. Sonata’s “drop-in” form-factor enables it to be used with existing notebook computers. Its patent-pending, whole-system design makes it capable of benefiting a wide range of end-applications.

Sonata is the first and only rechargeable Li-ion notebook computer battery to earn the prestigious, internationally respected Nordic Ecolabel certification. Nordic Ecolabel acknowledges companies such as Boston-Power that are conscientious regarding the environmental impact of the production, usage and disposal of their products. Sonata also has earned a similar certification from the China Environmental Certification Institution (CEC).

On a related note, Boston-Power announced the appointment of James Tsoi as general manager for Asia. In his new role, he will lead Boston-Power’s Asian strategy and operations, including manufacturing, supply chain, sales and administration. Tsoi brings to Boston-Power 25 years of hands-on and executive-level experience in engineering, supply chain, sales, quality, manufacturing and operations in the electronics, metals, and injection molding industries. He most recently served as vice president with JST International, where he led revenue growth from $9 million in 1996 to $165 million in 2007.

Last month, Boston-Power announced $55 million in growth capital, bringing total investment to $125 million. The company is using the funds to scale manufacturing, sales, marketing, and research and development to meet strong global demand for Sonata. Initially targeting notebook computers, Sonata could eventually be used to power a wide spectrum of end-applications – from consumer electronics devices to e-bikes, hybrid and electric vehicles (EV/HEV) and other forms of transportation. Early versions of products addressing these markets have already been developed.

About GP Batteries

GP Batteries International Limited is principally engaged in the development, manufacture and marketing of batteries and battery-related products.

As a member of Gold Peak Group in Hong Kong, GP Batteries has rapidly expanded to become one of the world’s major suppliers of primary and rechargeable batteries. GP Batteries Group supplies an extensive range of battery products to electronics manufacturers, leading battery companies as well as consumer retail markets under its own GP brand name.

GP Batteries’ major production facilities are located in Hong Kong, China, Taiwan, Singapore and Malaysia, supported by marketing and trading offices in Asia, Europe and North America. For more information on GP Batteries, please visit www.gpbatteries.com.

About Boston-Power

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