1. © Copyright 2003 Frost & Sullivan. All Rights Reserved. World Primary Lithium Battery Markets New Transport Regulations Guarantee Safety, but Challenge Lithium Battery Vendors Power Supplies and Batteries Group “New regulations require all lithium primary/ion/polymer batteries manufactured after January 1, 2003 to be tested, packaged, documented, and marked according to the new DG transportation rules specified by the U.N. Manual of Tests and Criteria.”

2. © Copyright 2003 Frost & Sullivan. All Rights Reserved. Industry Trends Recent political and economic uncertainties impact market potential Increase in Department of Defense budget positively affecting growth Increased use of automotive telematic systems promotes growth Steady growth in radio frequency ID applications encourages expansion Growth of manufacturing in Asia regions drives demand Tire pressure monitoring systems stimulates demand Oil and gas exploration requires constant technical control procedures that demand primary lithium batteries New transportation regulation challenges lithium battery vendors

3. © Copyright 2003 Frost & Sullivan. All Rights Reserved. Key Features Frost & Sullivan Provides: Detailed insights into recent developments and trends Drivers, restraints, challenges, and strategic recommendations Analyst insights on ‘hot topics’ and emerging applications in the military battery market Market sizing and competitive analysis Market forecasts and opportunity analysis Quarterly assessments End-user analysis within each report

4. © Copyright 2003 Frost & Sullivan. All Rights Reserved. What We Offer Global Coverage: The United States, Europe, Japan, and Asia Proven methodology encompassing extensive primary and secondary data and research Focused information and strategies that cover business and technology issues Credible data and analysis highlighting industry dynamics Winning strategies to help you create precise business plans

5. © Copyright 2003 Frost & Sullivan. All Rights Reserved. Who Will Benefit? Current Market Participants  Find out how you compare to the competition  Assess current and future drivers and restraints  Determine and exploit new market share opportunities New Entrants  Analyze challenges associated with the industry  Calculate time scales for strategy implementation  Position yourself to capitalize on the market’s unmet needs Investment Community  Analyze long-term strategies of battery companies  Determine which participants will outperform the competition  Assess attractiveness of investing in the battery market for military applications

6. © Copyright 2003 Frost & Sullivan. All Rights Reserved. What’s Included Battery Chemistries Covered Lithium/Sulfur Dioxide Lithium/Thionyl Chloride Lithium/Manganese Dioxide Lithium/Polycarbon Monofluoride Regions Covered North America Europe Asia Pacific Rest-of-World

7. © Copyright 2003 Frost & Sullivan. All Rights Reserved. What’s Included (Cont’d) End-user Groups Examined  Automotive  Commercial  Consumer  Industrial Electronics  Information Technology  Medical  Military/Aerospace  Others

8. © Copyright 2003 Frost & Sullivan. All Rights Reserved.  Alliant Techsystems  Eagle Picher  Hitachi-Maxell  Matsushita Battery Industrial/Panasonic  Rayovac  Saft  SANYO  Tadiran Batteries Ltd/Sonnenschein Lithium GmbH  Toshiba  Ultralife  VARTA Microbattery GmbH  Wilson Greatbatch  Others Key Market Participants

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