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Maxwell Technologies Forms Offshore Manufacturing Alliance for Large-Scale Production of Ultracapacitor Cells and Multi-Cell Modules in China

18 April 2006

Maxwell Technologies, Inc. (Nasdaq: MXWL) announced today that it has formed a toll manufacturing alliance with Belton Technology Group, a major Chinese manufacturer of precision components, flex circuits, circuit boards and other products, to support Maxwell's forecasted growth to multi-million-unit annual volumes for its BOOSTCAP(R) ultracapacitors and multi-cell modules, driven by automotive, transportation and industrial electronics applications that are advancing toward high-volume production.

Dr. Richard Balanson, Maxwell's president and chief executive officer, said that the offshore manufacturing alliance enables the company to tap into Belton's large existing factories, supply chain operations and 20,000-person skilled production workforce to ensure that Maxwell can ramp ultracapacitor production as required to keep pace with the rapidly escalating ultracapacitor demand it expects in coming years. He said that Maxwell will continue to produce its proprietary carbon powder electrode material internally and deliver it to Belton plants for assembly into finished ultracapacitor cells and modules.

"The worldwide ultracapacitor market is real, and the demand we foresee in 2007 and beyond requires large-scale production capabilities such as those Belton already has in place," Balanson said. "Belton's financial strength and its willingness to commit to making major and continuing investments in factory space, equipment and training to support our cell and module production requirements will allow us to continue concentrating our resources on research, product development and electrode capacity expansion."

Balanson noted that Maxwell recently introduced more than 30 new BOOSTCAP products based on common architecture, components and assembly processes, and is now working closely with Belton engineering and manufacturing personnel to completely shift production of those products to high-volume facilities in China by the end of 2006.

"We have been sourcing key components and materials from Belton for the past year in what we considered the initial phase of a natural progression to offshore manufacturing, and we have been more than satisfied with their responsiveness and quality-centric approach," Balanson said. "Belton has 18 years of experience in producing precision components on a scale of millions per week at Six Sigma quality levels for hard disk drives, communications equipment, implantable medical components and other extremely demanding and competitive industries."

H.P. Chan, president and chief executive officer of Belton Technology Group, said that Belton seeks to align itself as a manufacturing partner with technology leaders in their respective industries.

"We are excited about this expanded alliance with Maxwell," Chan said. "Belton's proven high-volume quality manufacturing and supply chain capabilities and Maxwell's ultracapacitor technology, product designs and worldwide marketing and distribution network will make a powerful combination."

About Belton Technology Group

Established in 1988, Belton Technology Group is an ISO 9001, 14001, QS9000 certified full turnkey contract manufacturer of precision machined components and stampings, plastic injection molded parts, magnetic coils, flexible and rigid printed circuit boards and SMT flip chip assemblies. It has five manufacturing plants with a total of 1.5 million square feet strategically located in China, Thailand and Malaysia. Belton offers vertically integrated manufacturing services, from product design through cost-effective manufacturing processes to quality assurance and cleanliness testing and on- time delivery. Belton is UL listed and employs Six Sigma and Lean Manufacturing techniques, real time statistical process control and top quality standards. For more information, please visit: http://www.beltontechnology.com.

About Maxwell Technologies

Maxwell is a leading developer and manufacturer of innovative, cost-effective energy storage and power delivery solutions. Our BOOSTCAP(R) ultracapacitor cells and multi-cell modules and POWERCACHE(R) backup power systems provide safe and reliable power solutions for applications in consumer and industrial electronics, transportation and telecommunications. Our CONDIS(R) high-voltage grading and coupling capacitors help to ensure the safety and reliability of electric utility infrastructure and other applications involving transport, distribution and measurement of high-voltage electrical energy. Our radiation-mitigated microelectronic products include power modules, memory modules and single board computers that incorporate powerful commercial silicon for superior performance and high reliability in aerospace applications. For more information, please visit our website: http://www.maxwell.com.

Forward Looking Statements

Statements in this news release that are "forward-looking statements" are based on current expectations and assumptions that are subject to risks and uncertainties. Actual results could differ materially because of factors such as:

* development and acceptance of products based on new technologies;

* demand for original equipment manufacturers' products reaching

anticipated levels;

* general economic conditions in the markets served by the company's

products;

* cost-effective manufacturing of new products;

* the impact of competitive products and pricing;

* risks and uncertainties involved in foreign operations, including the

impact of currency fluctuations.

For further information regarding risks and uncertainties associated with Maxwell's business, please refer to the "Management's Discussion and Analysis of Financial Condition and Results of Operations" and "Risk Factors" sections of our SEC filings, including, but not limited to, our annual report on Form 10-K and quarterly reports on Form 10-Q, copies of which may be obtained electronically at our investor relations website at http://www.maxwell.com/company/investors/sec_filings.html, or by contacting Maxwell's investor relations department at +1 (858) 503-3434.

All information in this release is as of April 17, 2006. The company undertakes no duty to update any forward-looking statement to conform the statement to actual results or changes in the company's expectations.

Source: prnewswire