Axion Power manufactures high-quality batteries for specialty markets and has developed new proprietary technology for lead-carbon (PbC®) energy storage devices for a wide range of energy storage and power delivery markets including renewable energy (wind, solar), grid-related (uninterruptible power, load-leveling, peak shaving), and emerging markets, including next-generation hybrid electric vehicles (HEVs). Axion Power proprietary energy storage technology is a potentially disruptive technology that represents the first major advance in lead-acid battery performance in more than 30 years. Axion’s PbC and PbC Technology™ were accepted by the U.S. Patent & Trademark Office. Prototype energy storage devices using the Company’s new technology demonstrate a number of significant advantages over conventional lead-acid batteries including: higher-power delivery levels; 10X faster recharging rates; 3X-4X longer battery life even in deep-discharge applications; significantly reduced warranty claims and premature failures; an environment-friendly and significant reduction in the use of lead; a significant reduction in weight; and the storage devices are maintenance free. Axion commenced sales in April 2006 and currently produces specialty 16-volt lead-acid batteries for race cars under the TurboStart™ brand name and a line of specialty lead-acid replacement batteries for antique and collector cars also under the TurboStart name. Axion is also producing, for testing and demonstration, quantities of prototype next-generation PbC energy storage devices on the same production lines as its lead-acid battery production lines in New Castle, Pennsylvania, and expects to produce new energy storage systems in volume at significantly lower cost than other advanced battery technologies such as lithium ion and nickel metal hydride. Conventional lead-acid batteries use negative electrodes made of lead. In comparison, Axion’s proprietary PbC energy storage devices use negative electrodes made of nanoporous activated carbon that exhibits very high surface-area. The resulting battery uses less lead and is more environmentally friendly. It is also better suited for renewable energy, hybrid electric vehicle, and many other existing applications for batteries. Axion’s Intellectual property includes treatment processes for the activated carbon used to make the electrodes, designs and manufacturing techniques for the carbon negative electrodes, manufacturing of the PbC batteries, and several other innovations related to the PbC batteries. Axion’s PbC battery Technology can be manufactured in a wide range of sizes common to the lead acid battery industry and therefore can accommodate a wide range of energy storage and power delivery requirements.