1. Energy Conversion Devices Rebecca Chun-Ping Hsu Oct.18, 2005

2. Energy Conversion Devices • Company Profile • Current Stock Facts • Management • Industry Climate • Financial Highlights • Financial Forecasts • Financial Summary • Investment Recommendation

3. Company Profile • Founded in 1960 and is based on Rochester Hill, Michigan • Highly advanced technology research- oriented and owning more than 1150 patents • 3 business segments, 4 core commercial businesses • Two competitive products: Photovoltaic (PV) Solar panels and nickel-metal-hydride (NiMH) batteries • 746 employees

4. Current Stock Facts • Closing Price:34.05 (Oct.17) • 52-Week High/Low: 46.88/15.64 • Market Cap: 988.68 Million • Beta: 1.85 • EPS (ttm): 1.71 • P/E (ttm): 20.06

5. Management • Robert C. Stempel – Chairman and CEO (former chairman and CEO of GM). Age 71 • Stanford R. Ovshinsky— founder, current president and chief scientist & technologist. Age 81 • James Metzger — Executive Vice President and Chief Operating Officer. Age 58

6. Industry Climate • Gasoline prices went up 35% over the past year • World PV shipments grew by 30% annually in the past two years • The Solar market is projected to grow 35% a year for the next three to five year • NiMH batteries had a growthrate of 20% over the last year • In 2004 hybrids accounted for 0.5% of the new vehicle market but that is expected to jump to 1.3% in 2005 and about 3.5% by 2010.

7. Industry Climate ECD‘ Competitiveness • Management's Business Restructuring Plan: focus on accelerating the commercialization of 4 core commercial businesses’ products • A new solar panel production line is expected to manufacturing by fall of 2006 • The formation of two new solar divisions • A dominant patent portfolio of NiMH batteries , including 91 US issued patents and 224 foreign issued patents • Making alliances with world-class automakers

8. Financial Highlights

9. Financial Highlights Highlights in fiscal 2005 • Profit: $ 50.3 M (a loss of $51.4M in fiscal 04) • Revenue increased from $66.3M(fiscal 2004) to $156.6M (fiscal 2005) • Sales of PV systems increased 84% from $27.6M(fiscal 2004) to $ 50.8 M (fiscal 2005) • Revenues in the quarter ended June 30, 2005 increased by $1.0 M compared to the same quarter in 2004 while expenses decreased by $2.4 M

10. Financial Highlights Trend Analysis :ECD vs. S&P 500 as of 16-Oct-2005

11. Financial Highlights Trend Analysis: ECD vs. its direct competitors as of 16-Oct-2005

12. Financial Highlights Industry Comparisons

13. Financial Forecast Revenue Forecasts (analysts)

14. Financial Forecast EPS Estimates (analysts)

15. Financial Summary • Required rate of return = 16.10%(assume Rf = 4.3% and Equity risk premium of 6.38%) • Forecasted growth rate for next year = 264% (from analyst) • Value of Stock = $46 (from analyst) • Mean Recommendation 1.8 (Strong Buy) 1.0 - 5.0 (Strong Sell)

16. Investment Recommendation Pros • Solar production is progressing well and the solar market is projected to grow 35 percent a year for the next three to five years • Current solar panels win is likely only the beginning and the production capacity is expected to double in fall of 2006 • The actual revenue-generating of Ovonic Battery and Cobasys are landing. Chevron also agreed to continue funding Cobasys. • Hybrid vehicles market is growing quickly

17. Investment Recommendation Cons • The challenge of whether ECD could continue to cut down cost and hold positive cash flow . • Hybrid vehicle growth could be less than expected by the market over time • The ages of the CEO, Robert C. Stempel, and the current president, Stanford R. Ovshinsky • ECD Ovonics currently carries a Beta with 1.85, which challenges our tolerance toward risk

18. Investment Recommendation BUY ECD is a profitable company which carries multiple high-value opportunities