A123 Systems to Supply 11MW Grid Battery System to Sempra Generation for the Auwahi Wind Project in Hawaii

WALTHAM, Mass., Dec. 22, 2011 (GLOBE NEWSWIRE) -- A123 Systems (Nasdaq:AONE), a developer and manufacturer of advanced Nanophosphate® lithium ion batteries and systems, today announced that it will supply an 11MW Grid Battery System (GBS) to Sempra Generation for the Auwahi Wind project in Maui, Hawaii. The advanced energy storage solution is designed to smooth variable wind power generation, which is expected to help maintain the stability to Maui's electric grid.

"We believe that wind-rich locations like Hawaii represent a significant opportunity for energy storage, especially as project developers and utilities continue to understand that storage has the capability to help maximize production and reduce the challenges associated with the variability of wind power generation," said Robert Johnson, vice president of the Energy Solutions Group at A123. "We consider Sempra Generation's selection of our GBS energy storage solution for the Auwahi Wind project to be strong validation of our technology, and we look forward to showcasing the benefits of our energy storage systems for wind power integration when the Auwahi project is operational."

When fully operational, the 21MW Auwahi Wind project is expected to be capable of generating enough energy to power the equivalent of 10,000 homes, and the Hawaii Public Utilities Commission has approved a 20-year contract for Maui Electric Company to purchase the electricity produced at Auwahi. A123's GBS storage system is designed to facilitate the smooth and efficient operation of the wind farm, helping Sempra Generation maintain the consistent delivery of clean, emission-free energy to Maui Electric.

In addition, A123's Smart Grid Domain Controller will manage voltage regulation requirements for the project, leveraging the battery system and other assets including substation capacitor banks. When called upon, the storage solution will use A123's proprietary Nanophosphate® lithium ion batteries and built-in power electronics to deliver up to 11MW of power in milliseconds, providing Sempra Generation with a robust, turnkey solution for meeting energy requirements while helping to maintain grid stability.

About A123 Systems

A123 Systems, Inc. (Nasdaq:AONE) is a leading developer and manufacturer of advanced lithium-ion batteries and energy storage systems for transportation, electric grid and commercial applications. The company's proprietary Nanophosphate® technology is built on novel nanoscale materials initially developed at the Massachusetts Institute of Technology and is designed to deliver high power and energy density, increased safety and extended life. A123 leverages breakthrough technology, high-quality manufacturing and expert systems integration capabilities to deliver innovative solutions that enable customers to bring next-generation products to market. For additional information please visit www.a123systems.com .

The A123 Systems, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=6600

Safe Harbor Disclosure

This press release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that are subject to risks, uncertainties and other factors. Among the factors that could cause actual results to differ materially from those indicated by such forward-looking statements are: the ability of advanced energy storage to address renewable energy needs for stability, consistency and efficiency, delays or inability of the Auwahi Wind project to meet its intended goals, delays in implementation of the Auwahi Wind project, the ability of A123's GBS solution and Smart Grid Domain Controller to address the needs of Sempra Generation and the Auwahi Wind project, delays in the implementation of A123's solution at the Auwahi Wind project, delays in the development, changes or delays in the State of Hawaii's goals to increase renewable power generation, production and delivery of A123's products and solutions, delays in customer and market demand for Sempra Generation's products and services, adverse economic conditions in general and adverse economic conditions specifically affecting the markets and geographies in which A123 and Sempra Generation operate and other risks detailed in A123 Systems' quarterly report on Form 10-Q for the quarter ended September 30, 2011 and other publicly available filings with the Securities and Exchange Commission. All forward-looking statements reflect A123's expectations only as of the date of this release and should not be relied upon as reflecting A123's views, expectations or beliefs at any date subsequent to the date of this release.

CONTACT: A123 Systems PR Contact:

         A123 Systems

         Dan Borgasano

         617-972-3471

         dborgasano@a123systems.com

         

         Edelman

         Courtney Kessler

         212-277-3720

         courtney.kessler@edelman.com

         

         A123 Systems IR Contact:

         ICR, LLC

         Garo Toomajanian

         617-972-3450

         ir@a123systems.com



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