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

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

3. 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 Company Profile

4. 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 Current Stock Facts

5. 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 Management

6. 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 growth rate 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. Industry Climate

7. 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 Industry Climate ECD‘ Competitiveness

8. Financial Highlights PERIOD ENDING30-Jun-0530-Jun-0430-Jun-03 Total Revenue (thousands)156,57066,30565,179 Net Income (thousands)50,332(51,422)(36,198) Diluted EPS$1.7N/A Total Assets (thousands)134,82743,65377,962 Total Stockholder Equity (thousands) 155,72081,15599,832 Net Margin32.12%-77.55%-58.94% Earning Per Share4.118-2.150-1.750 Return on Asset37.33%N/A

9. 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 Financial Highlights Highlights in fiscal 2005

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 ENERDSTIESLRSPIR Market Cap: 1.11B32.01M514.49M57.80M Employees: 74617250107 Revenue (ttm): 156.47M407.41K36.88M19.52M Gross Margin (ttm): 54.69%64.27%2.49%11.99% EBITDA (ttm): 51.18M-3.71M-12.59M-4.31M Oper Margins (ttm): 27.66%-1,263.30%-44.75%-35.30% Net Income (ttm): 49.46M-5.12M-16.11M-902.51K EPS (ttm): 1.697-1.389-0.303-0.132 P/E (ttm): 19.60N/A Last price 33.769.358.458.83 % Change 200-day Mov.Avg. +26.78%-17.42%+26.29%+16.46% ENERENER=ECD Ovonics; DSTI =DayStar Technologies; ESLR=Evergreen Solar; SPIR= SpireDSTIESLRSPIR

13. Financial Forecast Revenue Forecasts (analysts) Analysts Estimate Current QtrNext QtrCurrent YearNext Year Sep-05Dec-05Jun-06Jun-07 Earnings Est-0.13-0.10-0.250.41 Revenue Est25.90M26.77M138.59M196.62M Revenue Growth (year/est) 16.9%3.3%N/A41.9%

14. Financial Forecast EPS Estimates (analysts) Current Quarter Next Quarter Current Year Next Year Current Estimate -0.13-0.10-0.250.41 7 Days Ago-0.13-0.10-0.250.41 30 Days Ago-0.10-0.08-0.260.51 60 Days Ago-0.11-0.08-0.270.40 90 Days Ago-0.11-0.08-0.280.30

15. 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) Financial Summary

16. 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 Investment Recommendation Pros

17. 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 Investment Recommendation Cons

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