A123 Systems (AONE) to Supply Six Battery Energy Storage Solutions to Northern Powergrid

WALTHAM, Mass., Feb. 10, 2012 (GLOBE NEWSWIRE) — A123 Systems (Nasdaq:AONE), a developer and manufacturer of advanced Nanophosphate® lithium ion batteries and systems, today announced that it will supply six Grid Battery Systems™ (GBSs) to Northern Powergrid, an electricity distribution network operator that delivers power to more than 3.8 million customers in the U.K. The GBSs will be designed for peak-load shifting and to manage fluctuations in voltage on the U.K.’s power grid. Expected to be operational by the end of 2012, the systems will be deployed as part of the Customer-Led Network Revolution (CLNR), the U.K.’s largest smart grid project funded through the Office of the Gas and Electricity Markets’ (Ofgem) Low Carbon Networks Fund.

“The CLNR will evaluate a number of innovative network technologies to accommodate increasing quantities of low-carbon loads and renewable generation necessary to meet the U.K.’s climate change goals. One aspect of this multifaceted project is to determine how the use of storage technology may reduce peak loading on our network and thereby offset the need for network reinforcement,” said Jim Cardwell, head of regulation and strategy at Northern Powergrid. “A123’s battery energy storage systems will showcase how such technology can be part of the U.K.’s low-carbon future.”

A123’s GBS storage systems, which include the company’s Smart Grid Domain Controller™, are designed to provide Northern Powergrid with robust solutions to more efficiently manage voltage regulation requirements to help maintain grid stability and power quality as more clean energy resources are added. The six GBSs that A123 will supply to Northern Powergrid include a 2.5MW system, two 100kW systems and three 50kW systems. Each will be designed to maintain these power capabilities for up to two hours, adding flexibility to the distribution network and helping to provide consistent delivery of reliable power to customers.

“Grid operators around the world are faced with a variety of technical hurdles when trying to add significant renewable capacity. In the U.K., distribution networks often have limitations that make adding high concentrations of wind and solar difficult,” said Robert Johnson, vice president of the Energy Solutions Group at A123. “Battery energy storage can overcome these challenges by efficiently managing the voltage levels of the power network, and we look forward to working with Northern Powergrid on the CLNR smart grid project, which we view as an excellent opportunity for A123 to showcase the versatility and performance of our GBS solutions.”

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.

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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: changes or delays in Northern Power Grid’s development and implementation of the GBS solutions in connection with the Customer-Led Network Revolution project, delays or inability of the GBS solutions or the Customer-Led Network Revolution project to meet their intended goals and objectives, the ability of A123’s GBS storage systems to manage voltage regulation requirements of the power network and to address Northern Power Grid’s needs in connection with the Customer-Led Network Revolution project , delays in customer and market demand for Northern Power Grid’s products and services, delays in the implementation of A123’s GBS solutions , delays in the development, production and delivery of A123’s products and solutions, adverse economic conditions in general and adverse economic conditions specifically affecting the markets and geographies in which A123 and Northern Power Grid 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