<SUBMISSION>
<ACCESSION-NUMBER>0000032878-06-000023
<TYPE>8-K
<PUBLIC-DOCUMENT-COUNT>2
<PERIOD>20060208
<ITEMS>2.02
<ITEMS>9.01
<FILING-DATE>20060210
<DATE-OF-FILING-DATE-CHANGE>20060210
<FILER>
<COMPANY-DATA>
<CONFORMED-NAME>ENERGY CONVERSION DEVICES INC
<CIK>0000032878
<ASSIGNED-SIC>3690
<IRS-NUMBER>381749884
<STATE-OF-INCORPORATION>DE
<FISCAL-YEAR-END>0630
</COMPANY-DATA>
<FILING-VALUES>
<FORM-TYPE>8-K
<ACT>34
<FILE-NUMBER>001-08403
<FILM-NUMBER>06598134
</FILING-VALUES>
<BUSINESS-ADDRESS>
<STREET1>2956 WATERVIEW DRIVE
<CITY>ROCHESTER HILLS
<STATE>MI
<ZIP>48309
<PHONE>248-293-0440
</BUSINESS-ADDRESS>
<FORMER-COMPANY>
<FORMER-CONFORMED-NAME>ENERGY CONVERSION LABORATORIES INC
<DATE-CHANGED>19710603
</FORMER-COMPANY>
</FILER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>form8k_020806release.htm
<DESCRIPTION>FURNISHING 2/08/06 RELEASE - Q2 FY 2006
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>UNITED STATES</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>SECURITIES AND EXCHANGE COMMISSION</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>WASHINGTON, D.C. 20549</font></p>


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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><B><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>FORM 8-K</font></B></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:CENTER;'><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>CURRENT REPORT</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:CENTER;'><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Pursuant to Section 13 Or 15(d) of the<BR>Securities Exchange Act of 1934</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</font></p>


<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:7.69%; text-indent:-7.69%;text-align:justify;'><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;
</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style=' border-collapse:collapse'>
    <tr>
        <td width="50%" valign=top align=left> <FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Date of Report (Date of earliest event reported)</font> </td>

        <td width="50%" valign=top align=left> <FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;&nbsp;&nbsp;February 8, 2006</font> <HR noshade width="100%"  color="gray" size="1"> </td></tr>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</font></p>

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        <td width="100%" valign=top align=center> <FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>ENERGY CONVERSION DEVICES, INC.</font> <br>
        <HR noshade width="100%"  color="gray" size="1"> </td></tr>
     <tr>
        <td width="100%" valign=top align=left> <FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>(Exact name of registrant as specified in its charter)</font></td>
</tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</font></p>


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    <tr>
        <td width="40%" valign=bottom>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:1.0pt'><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>DELAWARE
</font></p> </td>

        <td width="15%" valign=bottom>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:1.0pt'><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>1-8403
</font></p> </td>

        <td width="40%" valign=bottom>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:1.0pt'><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>
38-1749884</font></p> </td>
</tr>

    <tr>
        <td colspan=3 valign=top>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'>
<HR noshade width="100%"  color="gray" size="1"> </td>

</tr>

    <tr>
        <td width="40%" valign=top>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0pt'><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>(State or Other
Jurisdiction<BR>of Incorporation)</font></p> </td>

        <td width="15%" valign=top>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:1.5pt;margin-bottom:0pt'><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>(Commission<BR>File Number)</font></p> </td>


        <td width="40%" valign=top>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:1.5pt;margin-bottom:0pt'><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>(I.R.S.
Employer<BR>Identification No.)</font></p> </td>
</tr></table>

<br>
<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="97%" style=' margin-left:5.4pt;border-collapse:collapse'>
    <tr>
        <td width="64%" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:1.5pt'><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>2956
Waterview Drive, Rochester Hills, Michigan</font></p> </td>
        <td width="35%" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:1.5pt'><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>48309
</font></p> </td> </tr>
    <tr>
        <td valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'>
<HR noshade width="100%"  color="gray" size="1"> </td>
        <td valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'>
<HR noshade width="100%"  color="gray" size="1"> </td> </tr>
    <tr>
        <td width="64%" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0pt'><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>(Address of
principal executive offices)</font></p> </td>
        <td width="35%" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:1.5pt;margin-bottom:0pt'><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>(Zip
Code)</font></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Registrant's telephone number, including area code
</font><u><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(248) 293-0440&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></u></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</font></p>
<br>


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        <td width="100%" colspan=2 valign=top > <HR noshade width="100%" color="gray" size="1"> </td> </tr>

    <tr>
        <td width="8%" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;
</font></p> </td>
        <td width="91%" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Former
name, former address and former fiscal year, if changed since last report.</font></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:7.69%;text-align:justify;'><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;'><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Check the appropriate box below if the Form 8-K is intended to simultaneously satisfy the
filing obligation of the registrant under any of the following provisions (see General
Instruction A.2 below):</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-align:justify;'><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</font></p>
<p style=' margin-bottom:0pt; margin-top:0pt; text-align:justify;'><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>[&nbsp;&nbsp;]&nbsp;&nbsp;&nbsp;&nbsp;Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)</font></p>
<p style=' margin-bottom:0pt; margin-top:0pt; text-align:justify;'><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</font></p>
<p style=' margin-bottom:0pt; margin-top:0pt; text-align:justify;'><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>[&nbsp;&nbsp;]&nbsp;&nbsp;&nbsp;&nbsp;Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)</font></p>
<p style=' margin-bottom:0pt; margin-top:0pt; text-align:justify;'><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</font></p>
<p style=' margin-bottom:0pt; margin-top:0pt; text-align:justify;'><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>[&nbsp;&nbsp;]&nbsp;&nbsp;&nbsp;&nbsp;Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(17 CFR 240.14d-2(b))</font></p>
<p style=' margin-bottom:0pt; margin-top:0pt; text-align:justify;'><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</font></p>
<p style=' margin-bottom:0pt; margin-top:0pt; text-align:justify;'><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>[&nbsp;&nbsp;]&nbsp;&nbsp;&nbsp;&nbsp;Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(17 CFR 240.13e-4(c))</font></p>




<br>

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<!-- MARKER FORMAT-SHEET="Head Left-TNR" FSL="Workstation" -->
<P ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2><u>Item 2.02</u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>Results of
Operations and Financial Condition </u></FONT></P>

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<P><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
information in this Current Report shall not be deemed &#147;filed&#148; for the purposes
of Section 18 of the Securities Exchange Act of 1934, as amended, and is not incorporated
by reference into any filing of Energy Conversion Devices, Inc. , whether made before or
after the date hereof, regardless of any general incorporation language in such filing. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On
February 8, 2006, Energy Conversion Devices, Inc. issued a press release announcing its
consolidated financial results for the quarter ended December 31, 2005. A copy of the
press release is furnished as Exhibit 99.1 to this report. </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Left-TNR" FSL="Workstation" -->
<P ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2><u>Item 9.01</u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>Financial
Statements and Exhibits</u></FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
     <P><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>(a)&nbsp;&nbsp;&nbsp;&nbsp;
          Not applicable. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
     <P><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>(b)&nbsp;&nbsp;&nbsp;&nbsp;
          Not applicable. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
     <P><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>(c)&nbsp;&nbsp;&nbsp;&nbsp;
          Exhibits: </FONT></P>

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<TD WIDTH=90%><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>
99.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Press release dated February 8, 2006 reporting consolidated financial results for<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the quarter ended December 31, 2005. </FONT></TD>
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<BR>


<br>
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<P ALIGN=CENTER><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>2</FONT></P>


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<!-- MARKER FORMAT-SHEET="Head Minor Center-TNR" FSL="Workstation" -->
<P ALIGN=CENTER><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2><U><B>SIGNATURES</B></U></FONT></P>

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<P><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant
to the requirements of the Securities Exchange Act of 1934, Registrant has duly caused
this report to be signed on its behalf by the undersigned thereunto duly authorized. </FONT></P>





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<td WIDTH=60%><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>ENERGY CONVERSION DEVICES, INC.<BR><BR></FONT>
</td>
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<td WIDTH=40%><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2></FONT>
</td>

<td WIDTH=60%><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>By:&nbsp;&nbsp;&nbsp;/s/ Stephan W. Zumsteg</FONT><HR noshade align="RIGHT" width="96%" size="2"><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Vice President and Chief Financial Officer</FONT>
</td>
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</td>

<td WIDTH=60%><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2></FONT>
</td>
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<!-- MARKER FORMAT-SHEET="Head Left-TNR" FSL="Default" -->
<P ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Date: February 10, 2006 </FONT></P>


<br>
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<P ALIGN=CENTER><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>3</FONT></P>


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<P ALIGN=CENTER><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2><u>Exhibit Index</u></FONT></P>

<!-- MARKER FORMAT-SHEET="Head Sub 2 Left-TNR" FSL="Default" -->
<P ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>Exhibit
No.</U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>Description</u></FONT></P>

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<td width=30% align=center><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>99.1</font>
</td>

<td width=60% align=left><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Press release dated February 8, 2006 reporting consolidated<br>financial results for the quarter ended December 31, 2005</font>
</td>

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<TYPE>EX-99.1
<SEQUENCE>2
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<DESCRIPTION>PRESS RELEASE OF 2/08/06 - FY 2006 Q2 RESULTS
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><B><font SIZE=2>ENERGY CONVERSION
DEVICES (ECD OVONICS) ANNOUNCES</font></B></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><B><font SIZE=2>SECOND QUARTER
FISCAL 2006 OPERATING RESULTS</font></B></p>


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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:8.0pt;margin-bottom: 0in'>
<font size=1>&nbsp;</font></p> </td>
        <td width="3%" valign=top style='padding:8.0pt 0in 0in 0in'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'>
<font size=4><b>&#149;</b></font></p> </td>
        <td  valign=top style='padding:8.0pt 0in 0in 0in'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><i>
<font size=2>United Solar Ovonic achieved a record profit with operating profit of $1.8 million in
the second quarter</font></i></p> </td> </tr></table>



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        <td width="7%" valign=top style='padding:6.0pt 0in 0in 0in'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:6.0pt;margin-bottom: 0in'>
<font size=1>&nbsp;</font></p> </td>
        <td width="3%" valign=top style='padding:6.0pt 0in 0in 0in'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'>
<font size=4><b>&#149;</b></font></p> </td>
        <td  valign=top style='padding:6.0pt 0in 0in 0in'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><i>
<font size=2>United Solar Ovonic&#146;s product sales increased 86% in the second quarter to $20.9
million</font></i></p> </td> </tr></table>



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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:6.0pt;margin-bottom: 0in'>
<font size=1>&nbsp;</font></p> </td>
        <td width="3%" valign=top style='padding:6.0pt 0in 0in 0in'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'>
<font size=4><b>&#149;</b></font></p> </td>
        <td  valign=top style='padding:6.0pt 0in 0in 0in'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><i>
<font size=2>United Solar Ovonic produced at its full-rated capacity</font></i></p> </td> </tr>
</table>



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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:10.0pt;margin-bottom: 0in'>
<font size=1>&nbsp;</font></p> </td>
        <td width="3%" valign=top style='padding:10.0pt 0in 0in 0in'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'>
<font size=4><b>&#149;</b></font></p> </td>
        <td  valign=top style='padding:10.0pt 0in 0in 0in'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><i>
<font size=2>United Solar Ovonic signed an agreement with Actus Lend Lease to supply 7MW of PV
products for the world&#146;s largest solar-powered residential community on the Island of Oahu,
Hawaii, for the United States Army</font></i></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='margin-left:0pt;border-collapse:collapse'>
    <tr >
        <td width="7%" valign=top style='padding:10.0pt 0in 0in 0in'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:10.0pt;margin-bottom: 0in'>
<font size=1>&nbsp;</font></p> </td>
        <td width="3%" valign=top style='padding:10.0pt 0in 0in 0in'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'>
<font size=4><b>&#149;</b></font></p> </td>
        <td  valign=top style='padding:10.0pt 0in 0in 0in'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><i>
<font size=2>Cobasys was selected to supply advanced NiMHax 36-volt nickel metal hydride battery
systems for GM's 2007 Saturn VUE Green Line SUV expected to become available to consumers in the
summer of 2006</font></i></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='margin-left:0pt;border-collapse:collapse'>
    <tr >
        <td width="7%" valign=top style='padding:6.0pt 0in 0in 0in'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:6.0pt;margin-bottom: 0in'>
<font size=1>&nbsp;</font></p> </td>
        <td width="3%" valign=top style='padding:6.0pt 0in 0in 0in'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'>
<font size=4><b>&#149;</b></font></p> </td>
        <td  valign=top style='padding:6.0pt 0in 0in 0in'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><i>
<font size=2>Ovonyx and Samsung entered into a long-term royalty-bearing license agreement for
Ovonyx&#146; intellectual property relating to OUM thin-film semiconductor memory technology</font>
</i></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:7.58%;text-align:left;'><font size=2>
&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:7.58%;text-align:left;'><b><font size=2>
ROCHESTER HILLS, Mich.</font></b><font size=2>, Feb. 8, 2006 &#150; Energy Conversion Devices, Inc.
(ECD Ovonics) (NASDAQ:ENER) announced today its operating results for the second quarter ended
December 31, 2005.  Net loss for the second quarter was $5.7 million compared to net loss of $12.4
million, excluding special items, for the same period in 2004, narrowing the net loss by $6.7
million.  Special items for the three months ended December 31, 2004 include a one-time, $79.5
million non-cash license revenue related to the expansion of our NiMH battery license to Cobasys.
There were no special items in the three months ended December 31, 2005.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:7.58%;text-align:left;'><font size=2>
&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:7.58%;text-align:left;'><font size=2>
&#147;Overall we had a strong second quarter,&#148; commented Robert C. Stempel, Chairman and CEO of
ECD Ovonics.  &#147;For the eighth consecutive quarter, we achieved a double digit percentage
increase in revenues at United Solar Ovonic, our wholly owned solar subsidiary, and demand for our
solar products continues to grow.  Construction of our second state-of-the-art 25MW solar cell
manufacturing facility in Auburn Hills is on schedule and we expect to begin production in the fall
of 2006.&#148;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:7.58%;text-align:left;'><font size=2>
&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:7.58%;text-align:left;'><font size=2>
&#147;We were pleased that we continued to improve our profitability in the second quarter.  United
Solar Ovonic&#146;s gross and operating profit margins improved in the second quarter on a
year-over-year and sequential basis.  We also completed the sale of our metal hydride manufacturing
business during the second quarter which was an important step in restructuring our operations to
achieve our goal of sustained profitability.&#148;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:7.58%;text-align:left;'><font size=2>
&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:7.58%;text-align:left;'><font size=2>
&#147;During the second quarter we also had several important developments in our NiMH battery and
phase-change memory businesses.  In January, it was announced that Cobasys, our joint venture with
Chevron for the production of high power NiMH batteries for transportation applications, was
selected to supply the battery system for the 2007 Saturn VUE, GM&#146;s first hybrid.  This marks
an important step in Cobasys&#146; strategic vision to become a leader in manufacturing battery
systems for hybrid electric vehicles.  In December, Samsung signed an agreement with Ovonyx to
license Ovonyx&#146; phase-change memory technology (OUM).  This exciting development underscores
the significant potential of Ovonyx&#146; unique technology and its broad range of
applications.&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>- more -</font></p>

<br>
<HR noshade align="center" width="100%" size="2">
<p style='page-break-before:always'></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>- 2 -</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:7.58%;text-align:left;'><font size=2>The
table below summarizes the Company&#146;s operating results (in thousands):</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:7.58%;text-align:left;'><font size=2>
&nbsp;</font></p>



<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 ALIGN=Center WIDTH=99%>

<TR VALIGN=Bottom>
     <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2></FONT></TD>
     <TD COLSPAN=6 ALIGN=CENTER><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">Three Months Ended<br><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;December 31,&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> </FONT></TD>
     <TD COLSPAN=6 ALIGN=CENTER><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">Six Months Ended<br><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;December 31,&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> </FONT></TD></TR>

<TR VALIGN=Bottom>
     <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2></FONT></TD>
     <TD COLSPAN=3 ALIGN=CENTER><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2005&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> </FONT></TD>
     <TD COLSPAN=3 ALIGN=CENTER><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2004&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> </FONT></TD>
     <TD COLSPAN=3 ALIGN=CENTER><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2005&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> </FONT></TD>
     <TD COLSPAN=3 ALIGN=CENTER><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2004&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> </FONT></TD></TR>

<TR VALIGN=Bottom>
     <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2></FONT></TD>
     <TD COLSPAN=12 ALIGN=CENTER><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>(in thousands, except per-share amounts)<br></FONT></TD></TR>

<TR VALIGN=Bottom>
     <TD WIDTH=56% ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Revenues</FONT></TD>

     <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD WIDTH=9% ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2></FONT></TD>
     <TD WIDTH="2%" ALIGN="LEFT"><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD>

     <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2></FONT></TD>
     <TD WIDTH=9% ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD WIDTH=2% ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD>

     <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2></FONT></TD>
     <TD WIDTH=9% ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD WIDTH=2% ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD>

     <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD WIDTH=9% ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2></FONT></TD>
     <TD WIDTH=2% ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD></TR>

<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Product sales</FONT></TD>

     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>$</FONT></TD> <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>21,681</FONT></TD>  <TD ALIGN="LEFT" WIDTH="2%"><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>$</FONT></TD> <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2> 8,821</FONT></TD>  <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>$</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2> 40,948</FONT></TD>  <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>$</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2> 22,867</FONT></TD>  <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD></TR>

<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Royalties</FONT></TD>

     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>331</FONT></TD>    <TD ALIGN="LEFT" WIDTH="2%"><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>1,497</FONT></TD>  <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>1,514</FONT></TD>  <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>3,076</FONT></TD>  <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD></TR>

<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Revenue from product development<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;agreements</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>1,868</FONT></TD>  <TD ALIGN="LEFT" WIDTH="2%"><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>5,416</FONT></TD>  <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>4,180</FONT></TD>  <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>11,328</FONT></TD> <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD></TR>

<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Revenue from license agreements</FONT></TD>

     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>238</FONT></TD>
        <TD ALIGN="LEFT" WIDTH="2%"><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>79,770</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>496</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>80,008</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>167</FONT></TD>
        <TD ALIGN="LEFT" WIDTH="2%"><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>170</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>394</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>487</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD></TR>

<TR>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> </TD>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> <HR WIDTH="100%" size="1" COLOR="Black" ALIGN="Left" NOSHADE="Noshade"></TD>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> <HR WIDTH="100%" size="1" COLOR="Black" ALIGN="Left" NOSHADE="Noshade"></TD>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> </TD>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> <HR WIDTH="100%" size="1" COLOR="Black" ALIGN="Left" NOSHADE="Noshade"></TD>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> <HR WIDTH="100%" size="1" COLOR="Black" ALIGN="Left" NOSHADE="Noshade"></TD>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> </TD>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> <HR WIDTH="100%" size="1" COLOR="Black" ALIGN="Left" NOSHADE="Noshade"></TD>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> <HR WIDTH="100%" size="1" COLOR="Black" ALIGN="Left" NOSHADE="Noshade"></TD>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> </TD>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> <HR WIDTH="100%" size="1" COLOR="Black" ALIGN="Left" NOSHADE="Noshade"></TD>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> <HR WIDTH="100%" size="1" COLOR="Black" ALIGN="Left" NOSHADE="Noshade"></TD>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> </TD></TR>

<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Total revenue</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>24,285</FONT></TD>
        <TD ALIGN="LEFT" WIDTH="2%"><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>95,674</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>47,532</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>117,766</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Expenses</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cost of product sales</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>17,689</FONT></TD>
        <TD ALIGN="LEFT" WIDTH="2%"><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>12,347</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>33,549</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>25,671</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cost of revenues from product<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;development agreements</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>1,932</FONT></TD>
        <TD ALIGN="LEFT" WIDTH="2%"><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>4,505</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>3,803</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>10,116</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Product development and research</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>7,773</FONT></TD>
        <TD ALIGN="LEFT" WIDTH="2%"><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>6,841</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>16,278</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>12,889</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Patents</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>603</FONT></TD>
        <TD ALIGN="LEFT" WIDTH="2%"><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>668</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>1,209</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>1,377</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Operating, general and<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;administrative (net)</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>3,351</FONT></TD>
        <TD ALIGN="LEFT" WIDTH="2%"><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>3,297</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>6,540</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>5,810</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD></TR>

<TR>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> </TD>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> <HR WIDTH="100%" size="1" COLOR="Black" ALIGN="Left" NOSHADE="Noshade"></TD>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> <HR WIDTH="100%" size="1" COLOR="Black" ALIGN="Left" NOSHADE="Noshade"></TD>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> </TD>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> <HR WIDTH="100%" size="1" COLOR="Black" ALIGN="Left" NOSHADE="Noshade"></TD>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> <HR WIDTH="100%" size="1" COLOR="Black" ALIGN="Left" NOSHADE="Noshade"></TD>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> </TD>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> <HR WIDTH="100%" size="1" COLOR="Black" ALIGN="Left" NOSHADE="Noshade"></TD>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> <HR WIDTH="100%" size="1" COLOR="Black" ALIGN="Left" NOSHADE="Noshade"></TD>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> </TD>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> <HR WIDTH="100%" size="1" COLOR="Black" ALIGN="Left" NOSHADE="Noshade"></TD>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> <HR WIDTH="100%" size="1" COLOR="Black" ALIGN="Left" NOSHADE="Noshade"></TD>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> </TD></TR>

<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Total expenses</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>31,348</FONT></TD>
        <TD ALIGN="LEFT" WIDTH="2%"><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>27,658</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>61,379</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>55,863</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> </TD>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> <HR WIDTH="100%" size="1" COLOR="Black" ALIGN="Left" NOSHADE="Noshade"></TD>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> <HR WIDTH="100%" size="1" COLOR="Black" ALIGN="Left" NOSHADE="Noshade"></TD>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> </TD>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> <HR WIDTH="100%" size="1" COLOR="Black" ALIGN="Left" NOSHADE="Noshade"></TD>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> <HR WIDTH="100%" size="1" COLOR="Black" ALIGN="Left" NOSHADE="Noshade"></TD>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> </TD>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> <HR WIDTH="100%" size="1" COLOR="Black" ALIGN="Left" NOSHADE="Noshade"></TD>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> <HR WIDTH="100%" size="1" COLOR="Black" ALIGN="Left" NOSHADE="Noshade"></TD>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> </TD>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> <HR WIDTH="100%" size="1" COLOR="Black" ALIGN="Left" NOSHADE="Noshade"></TD>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> <HR WIDTH="100%" size="1" COLOR="Black" ALIGN="Left" NOSHADE="Noshade"></TD>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> </TD></TR>

<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Net income (loss) from operations</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>(7,063</FONT></TD>
        <TD ALIGN="LEFT" WIDTH="2%"><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>)</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>68,016</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>(13,847</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>)</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>61,903</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD></TR>

<TR>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> </TD>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> <HR WIDTH="100%" size="1" COLOR="Black" ALIGN="Left" NOSHADE="Noshade"></TD>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> <HR WIDTH="100%" size="1" COLOR="Black" ALIGN="Left" NOSHADE="Noshade"></TD>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> </TD>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> <HR WIDTH="100%" size="1" COLOR="Black" ALIGN="Left" NOSHADE="Noshade"></TD>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> <HR WIDTH="100%" size="1" COLOR="Black" ALIGN="Left" NOSHADE="Noshade"></TD>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> </TD>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> <HR WIDTH="100%" size="1" COLOR="Black" ALIGN="Left" NOSHADE="Noshade"></TD>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> <HR WIDTH="100%" size="1" COLOR="Black" ALIGN="Left" NOSHADE="Noshade"></TD>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> </TD>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> <HR WIDTH="100%" size="1" COLOR="Black" ALIGN="Left" NOSHADE="Noshade"></TD>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> <HR WIDTH="100%" size="1" COLOR="Black" ALIGN="Left" NOSHADE="Noshade"></TD>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> </TD></TR>

<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Total other income (expense)</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>756</FONT></TD>
        <TD ALIGN="LEFT" WIDTH="2%"><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>(1,669</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>)</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>1,332</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>6,178</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> </TD>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> <HR WIDTH="100%" size="1" COLOR="Black" ALIGN="Left" NOSHADE="Noshade"></TD>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> <HR WIDTH="100%" size="1" COLOR="Black" ALIGN="Left" NOSHADE="Noshade"></TD>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> </TD>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> <HR WIDTH="100%" size="1" COLOR="Black" ALIGN="Left" NOSHADE="Noshade"></TD>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> <HR WIDTH="100%" size="1" COLOR="Black" ALIGN="Left" NOSHADE="Noshade"></TD>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> </TD>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> <HR WIDTH="100%" size="1" COLOR="Black" ALIGN="Left" NOSHADE="Noshade"></TD>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> <HR WIDTH="100%" size="1" COLOR="Black" ALIGN="Left" NOSHADE="Noshade"></TD>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> </TD>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> <HR WIDTH="100%" size="1" COLOR="Black" ALIGN="Left" NOSHADE="Noshade"></TD>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> <HR WIDTH="100%" size="1" COLOR="Black" ALIGN="Left" NOSHADE="Noshade"></TD>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> </TD></TR>

<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Net income (loss) from continuing</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;&nbsp;&nbsp;operations before income taxes<BR>&nbsp;&nbsp;&nbsp;and extraordinary item</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>(6,307</FONT></TD>
        <TD ALIGN="LEFT" WIDTH="2%"><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>)</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>66,347</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>(12,515</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>)</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>68,081</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Income taxes</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD>
        <TD ALIGN=CENTER><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&#151;</FONT></TD>
     <TD ALIGN="LEFT" WIDTH="2%"><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2></FONT>&nbsp;</TD>
        <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>1,025</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD>
        <TD ALIGN=CENTER><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&#151;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT>
     </TD><TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD>
        <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>1,025</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD></TR>

<TR>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> </TD>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> <HR WIDTH="100%" size="1" COLOR="Black" ALIGN="Left" NOSHADE="Noshade"></TD>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> <HR WIDTH="100%" size="1" COLOR="Black" ALIGN="Left" NOSHADE="Noshade"></TD>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> </TD>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> <HR WIDTH="100%" size="1" COLOR="Black" ALIGN="Left" NOSHADE="Noshade"></TD>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> <HR WIDTH="100%" size="1" COLOR="Black" ALIGN="Left" NOSHADE="Noshade"></TD>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> </TD>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> <HR WIDTH="100%" size="1" COLOR="Black" ALIGN="Left" NOSHADE="Noshade"></TD>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> <HR WIDTH="100%" size="1" COLOR="Black" ALIGN="Left" NOSHADE="Noshade"></TD>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> </TD>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> <HR WIDTH="100%" size="1" COLOR="Black" ALIGN="Left" NOSHADE="Noshade"></TD>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> <HR WIDTH="100%" size="1" COLOR="Black" ALIGN="Left" NOSHADE="Noshade"></TD>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Net income (loss) from continuing</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;&nbsp;&nbsp;operations before<BR>&nbsp;&nbsp;&nbsp;extraordinary item</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>(6,307</FONT></TD>
        <TD ALIGN="LEFT" WIDTH="2%"><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>)</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>65,322</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>(12,515</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>)</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>67,056</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Discontinued operations</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>572</FONT></TD>
        <TD ALIGN="LEFT" WIDTH="2%"><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>(451</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>)</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>314</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>(837</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>)</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Extraordinary item (net of taxes)</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD>
        <TD ALIGN=CENTER><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&#151;</FONT></TD>
     <TD ALIGN="LEFT" WIDTH="2%"><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT>
</TD><TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD>
        <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>2,266</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD>
<TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD>
        <TD ALIGN=CENTER><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&#151;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD>
<TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD>
        <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>2,266</FONT></TD>
<TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD></TR>

<TR>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> </TD>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> <HR WIDTH="100%" size="1" COLOR="Black" ALIGN="Left" NOSHADE="Noshade"></TD>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> <HR WIDTH="100%" size="1" COLOR="Black" ALIGN="Left" NOSHADE="Noshade"></TD>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> </TD>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> <HR WIDTH="100%" size="1" COLOR="Black" ALIGN="Left" NOSHADE="Noshade"></TD>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> <HR WIDTH="100%" size="1" COLOR="Black" ALIGN="Left" NOSHADE="Noshade"></TD>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> </TD>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> <HR WIDTH="100%" size="1" COLOR="Black" ALIGN="Left" NOSHADE="Noshade"></TD>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> <HR WIDTH="100%" size="1" COLOR="Black" ALIGN="Left" NOSHADE="Noshade"></TD>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> </TD>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> <HR WIDTH="100%" size="1" COLOR="Black" ALIGN="Left" NOSHADE="Noshade"></TD>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> <HR WIDTH="100%" size="1" COLOR="Black" ALIGN="Left" NOSHADE="Noshade"></TD>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> </TD></TR>


<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Net income (loss)</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>$</FONT></TD>
   <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>(5,735</FONT></TD>
        <TD ALIGN="LEFT" WIDTH="2%"><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>)</FONT></TD>

     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>$</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>67,137</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD>

     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>$</FONT></TD>
<TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>(12,201</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>)</FONT></TD>

     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>$</FONT></TD>
<TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>68,485</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> </TD>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> <HR WIDTH="100%" size="2" COLOR="Black" ALIGN="Left" NOSHADE="Noshade"></TD>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> <HR WIDTH="100%" size="2" COLOR="Black" ALIGN="Left" NOSHADE="Noshade"></TD>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> </TD>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> <HR WIDTH="100%" size="2" COLOR="Black" ALIGN="Left" NOSHADE="Noshade"></TD>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> <HR WIDTH="100%" size="2" COLOR="Black" ALIGN="Left" NOSHADE="Noshade"></TD>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> </TD>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> <HR WIDTH="100%" size="2" COLOR="Black" ALIGN="Left" NOSHADE="Noshade"></TD>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> <HR WIDTH="100%" size="2" COLOR="Black" ALIGN="Left" NOSHADE="Noshade"></TD>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> </TD>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> <HR WIDTH="100%" size="2" COLOR="Black" ALIGN="Left" NOSHADE="Noshade"></TD>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> <HR WIDTH="100%" size="2" COLOR="Black" ALIGN="Left" NOSHADE="Noshade"></TD>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> </TD></TR>


<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Basic net income (loss) per share</FONT></TD></TR>

<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Continuing operations</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>$</FONT></TD>   <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>(.21</FONT></TD>  <TD ALIGN="LEFT" WIDTH="2%"><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>)</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>$</FONT></TD>   <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>2.56</FONT></TD>  <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2></FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>$</FONT></TD>   <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>(.43</FONT></TD>  <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>)</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>$</FONT></TD>   <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>2.64</FONT></TD>  <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2></FONT></TD>
     </TR>

<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Discontinued operations</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD>   <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>.02</FONT></TD>    <TD ALIGN="LEFT" WIDTH="2%"><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2></FONT></TD>         <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>(.02</FONT></TD>   <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>)</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2></FONT></TD>         <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>.01</FONT></TD>    <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2></FONT></TD>         <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>(.03</FONT></TD>   <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>)</FONT></TD> </TR>

<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Extraordinary item</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD>   <TD ALIGN=CENTER><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&#151;</FONT></TD>      <TD ALIGN="LEFT" WIDTH="2%"><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD>   <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>.09</FONT></TD>     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD>   <TD ALIGN=CENTER><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&#151;</FONT></TD>      <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD>   <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>.09</FONT></TD>  <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> </TD>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> <HR WIDTH="100%" size="1" COLOR="Black" ALIGN="Left" NOSHADE="Noshade"></TD>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> <HR WIDTH="100%" size="1" COLOR="Black" ALIGN="Left" NOSHADE="Noshade"></TD>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> </TD>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> <HR WIDTH="100%" size="1" COLOR="Black" ALIGN="Left" NOSHADE="Noshade"></TD>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> <HR WIDTH="100%" size="1" COLOR="Black" ALIGN="Left" NOSHADE="Noshade"></TD>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> </TD>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> <HR WIDTH="100%" size="1" COLOR="Black" ALIGN="Left" NOSHADE="Noshade"></TD>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> <HR WIDTH="100%" size="1" COLOR="Black" ALIGN="Left" NOSHADE="Noshade"></TD>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> </TD>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> <HR WIDTH="100%" size="1" COLOR="Black" ALIGN="Left" NOSHADE="Noshade"></TD>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> <HR WIDTH="100%" size="1" COLOR="Black" ALIGN="Left" NOSHADE="Noshade"></TD>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> </TD></TR>

<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Basic net income (loss) per share</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>$</FONT></TD> <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>(.19</FONT></TD>   <TD ALIGN="LEFT" WIDTH="2%"><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>)</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>$</FONT></TD> <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2> 2.63</FONT></TD>  <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>$</FONT></TD> <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>(.42</FONT></TD>   <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>)</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>$</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>     2.70</FONT></TD> <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD></TR>

<TR>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> </TD>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> <HR WIDTH="100%" size="2" COLOR="Black" ALIGN="Left" NOSHADE="Noshade"></TD>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> <HR WIDTH="100%" size="2" COLOR="Black" ALIGN="Left" NOSHADE="Noshade"></TD>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> </TD>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> <HR WIDTH="100%" size="2" COLOR="Black" ALIGN="Left" NOSHADE="Noshade"></TD>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> <HR WIDTH="100%" size="2" COLOR="Black" ALIGN="Left" NOSHADE="Noshade"></TD>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> </TD>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> <HR WIDTH="100%" size="2" COLOR="Black" ALIGN="Left" NOSHADE="Noshade"></TD>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> <HR WIDTH="100%" size="2" COLOR="Black" ALIGN="Left" NOSHADE="Noshade"></TD>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> </TD>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> <HR WIDTH="100%" size="2" COLOR="Black" ALIGN="Left" NOSHADE="Noshade"></TD>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> <HR WIDTH="100%" size="2" COLOR="Black" ALIGN="Left" NOSHADE="Noshade"></TD>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> </TD></TR>

<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Diluted net income (loss) per share</FONT></TD></TR>

<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Continuing operations</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>$</FONT></TD>   <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>(.21</FONT></TD>  <TD ALIGN="LEFT" WIDTH="2%"><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>)</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>$</FONT></TD>   <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>2.38</FONT></TD>  <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2></FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>$</FONT></TD>   <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>(.43</FONT></TD>  <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>)</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>$</FONT></TD>   <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>2.56</FONT></TD>  <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2></FONT></TD>
     </TR>

<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Discontinued operations</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD>   <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>.02</FONT></TD>    <TD ALIGN="LEFT" WIDTH="2%"><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2></FONT></TD>         <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>(.02</FONT></TD>   <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>)</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2></FONT></TD>         <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>.01</FONT></TD>    <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2></FONT></TD>         <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>(.03</FONT></TD>   <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>)</FONT></TD> </TR>

<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Extraordinary item</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD>   <TD ALIGN=CENTER><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&#151;</FONT></TD>      <TD ALIGN="LEFT" WIDTH="2%"><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD>   <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>.08</FONT></TD>     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD>   <TD ALIGN=CENTER><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&#151;</FONT></TD>      <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD>   <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>.08</FONT></TD>  <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> </TD>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> <HR WIDTH="100%" size="1" COLOR="Black" ALIGN="Left" NOSHADE="Noshade"></TD>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> <HR WIDTH="100%" size="1" COLOR="Black" ALIGN="Left" NOSHADE="Noshade"></TD>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> </TD>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> <HR WIDTH="100%" size="1" COLOR="Black" ALIGN="Left" NOSHADE="Noshade"></TD>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> <HR WIDTH="100%" size="1" COLOR="Black" ALIGN="Left" NOSHADE="Noshade"></TD>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> </TD>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> <HR WIDTH="100%" size="1" COLOR="Black" ALIGN="Left" NOSHADE="Noshade"></TD>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> <HR WIDTH="100%" size="1" COLOR="Black" ALIGN="Left" NOSHADE="Noshade"></TD>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> </TD>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> <HR WIDTH="100%" size="1" COLOR="Black" ALIGN="Left" NOSHADE="Noshade"></TD>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> <HR WIDTH="100%" size="1" COLOR="Black" ALIGN="Left" NOSHADE="Noshade"></TD>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> </TD></TR>

<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Diluted net income (loss) per share</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>$</FONT></TD> <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>(.19</FONT></TD>   <TD ALIGN="LEFT" WIDTH="2%"><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>)</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>$</FONT></TD> <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2> 2.44</FONT></TD>  <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>$</FONT></TD> <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>(.42</FONT></TD>   <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>)</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>$</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>     2.61</FONT></TD> <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> </TD>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> <HR WIDTH="100%" size="2" COLOR="Black" ALIGN="Left" NOSHADE="Noshade"></TD>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> <HR WIDTH="100%" size="2" COLOR="Black" ALIGN="Left" NOSHADE="Noshade"></TD>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> </TD>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> <HR WIDTH="100%" size="2" COLOR="Black" ALIGN="Left" NOSHADE="Noshade"></TD>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> <HR WIDTH="100%" size="2" COLOR="Black" ALIGN="Left" NOSHADE="Noshade"></TD>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> </TD>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> <HR WIDTH="100%" size="2" COLOR="Black" ALIGN="Left" NOSHADE="Noshade"></TD>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> <HR WIDTH="100%" size="2" COLOR="Black" ALIGN="Left" NOSHADE="Noshade"></TD>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> </TD>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> <HR WIDTH="100%" size="2" COLOR="Black" ALIGN="Left" NOSHADE="Noshade"></TD>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> <HR WIDTH="100%" size="2" COLOR="Black" ALIGN="Left" NOSHADE="Noshade"></TD>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> </TD></TR>


</TABLE>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:7.58%;text-align:left;'><font size=2>
</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>- more -</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<HR noshade align="center" width="100%" size="2">
<p style='page-break-before:always'></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>- 3 -</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-indent:7.58%;text-align:left;'><font size=2>The
results for the prior periods (three and six months ended December 31, 2004) were favorably impacted
by the $79.5 million one-time, non-cash license fee related to the expanded license granted to
Cobasys.  The following table illustrates the operating loss for the three and six months ended
December 31, 2005 compared to the operating loss for the three and six months ended December 31,
2004 after excluding the aforementioned $79.5 million license fee:</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:7.58%;text-align:left;'><font size=2>
&nbsp;</font></p>


<table ALIGN=Center width="99%" border="0" cellspacing=0 cellpadding=0 style='border-collapse:collapse'>

<TR VALIGN=Bottom>
     <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2></FONT></TD>
     <TD COLSPAN=6 ALIGN=CENTER><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">Three Months Ended<br><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;December 31,&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> </FONT></TD>
     <TD COLSPAN=6 ALIGN=CENTER><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">Six Months Ended<br><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;December 31,&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> </FONT></TD></TR>

<TR VALIGN=Bottom>
     <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2></FONT></TD>
     <TD COLSPAN=3 ALIGN=CENTER><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2005&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> </FONT></TD>
     <TD COLSPAN=3 ALIGN=CENTER><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2004&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> </FONT></TD>
     <TD COLSPAN=3 ALIGN=CENTER><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2005&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> </FONT></TD>
     <TD COLSPAN=3 ALIGN=CENTER><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2004&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> </FONT></TD></TR>

<TR VALIGN=Bottom>
     <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2></FONT></TD>
     <TD COLSPAN=12 ALIGN=CENTER><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>(in thousands)<br><br></FONT></TD></TR>

<TR VALIGN=Bottom>
     <TD WIDTH=56% ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Net income (loss) from operations</FONT></TD>
        <TD WIDTH=1% ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>$</FONT></TD>    <TD WIDTH=9% ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>(7,063</FONT></TD>   <TD WIDTH=1% ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>)</FONT></TD>
        <TD WIDTH=1% ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>$</FONT></TD>    <TD WIDTH=9% ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>68,016</FONT></TD>   <TD WIDTH=1% ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD>
        <TD WIDTH=1% ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>$</FONT></TD>    <TD WIDTH=9% ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>(13,847</FONT></TD>  <TD WIDTH=1% ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>)</FONT></TD>
        <TD WIDTH=1% ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>$</FONT></TD>    <TD WIDTH=9% ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>61,903</FONT></TD>   <TD WIDTH=1% ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD></TR>

<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>One-time, non-cash license fee</FONT></TD>
        <TD ALIGN=LEFT>&nbsp;</TD> <TD ALIGN=CENTER><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&#151;</FONT></TD>  <TD ALIGN=LEFT>&nbsp;</TD>
        <TD ALIGN=LEFT>&nbsp;</TD> <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>79,532</FONT></TD>   <TD ALIGN=LEFT>&nbsp;</TD>
        <TD ALIGN=LEFT>&nbsp;</TD> <TD ALIGN=CENTER><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&#151;</FONT></TD>  <TD ALIGN=LEFT>&nbsp;</TD>
        <TD ALIGN=LEFT>&nbsp;</TD> <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>79,532</FONT></TD>   <TD ALIGN=LEFT>&nbsp;</TD></TR>

<TR>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> </TD>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> <HR WIDTH="100%" size="1" COLOR="Black" ALIGN="Left" NOSHADE="Noshade"></TD>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> <HR WIDTH="100%" size="1" COLOR="Black" ALIGN="Left" NOSHADE="Noshade"></TD>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> </TD>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> <HR WIDTH="100%" size="1" COLOR="Black" ALIGN="Left" NOSHADE="Noshade"></TD>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> <HR WIDTH="100%" size="1" COLOR="Black" ALIGN="Left" NOSHADE="Noshade"></TD>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> </TD>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> <HR WIDTH="100%" size="1" COLOR="Black" ALIGN="Left" NOSHADE="Noshade"></TD>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> <HR WIDTH="100%" size="1" COLOR="Black" ALIGN="Left" NOSHADE="Noshade"></TD>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> </TD>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> <HR WIDTH="100%" size="1" COLOR="Black" ALIGN="Left" NOSHADE="Noshade"></TD>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> <HR WIDTH="100%" size="1" COLOR="Black" ALIGN="Left" NOSHADE="Noshade"></TD>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> </TD></TR>

<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Net loss from operations before<br>&nbsp;&nbsp;&nbsp;license fee</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>$</FONT></TD>     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>(7,063</FONT></TD>   <TD ALIGN=LEFT>)</TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>$</FONT></TD>     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>(11,516</FONT></TD>  <TD ALIGN=LEFT>)</TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>$</FONT></TD>     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>(13,847</FONT></TD>  <TD ALIGN=LEFT>)</TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>$</FONT></TD>     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>(17,629</FONT></TD>  <TD ALIGN=LEFT>)</TD></TR>
<TR>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> </TD>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> <HR WIDTH="100%" size="2" COLOR="Black" ALIGN="Left" NOSHADE="Noshade"></TD>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> <HR WIDTH="100%" size="2" COLOR="Black" ALIGN="Left" NOSHADE="Noshade"></TD>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> </TD>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> <HR WIDTH="100%" size="2" COLOR="Black" ALIGN="Left" NOSHADE="Noshade"></TD>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> <HR WIDTH="100%" size="2" COLOR="Black" ALIGN="Left" NOSHADE="Noshade"></TD>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> </TD>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> <HR WIDTH="100%" size="2" COLOR="Black" ALIGN="Left" NOSHADE="Noshade"></TD>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> <HR WIDTH="100%" size="2" COLOR="Black" ALIGN="Left" NOSHADE="Noshade"></TD>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> </TD>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> <HR WIDTH="100%" size="2" COLOR="Black" ALIGN="Left" NOSHADE="Noshade"></TD>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> <HR WIDTH="100%" size="2" COLOR="Black" ALIGN="Left" NOSHADE="Noshade"></TD>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> </TD></TR>
</TABLE>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:7.58%;text-align:left;'><font size=2>
&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:7.58%;text-align:left;'><font size=2>Major
changes in our operating income (loss) were as follows:</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:7.58%;text-align:left;'><font size=2>
&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='margin-left:0pt;border-collapse:collapse'>
    <tr >
        <td width="11%" valign=top >

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'>
<font size=1>&nbsp;</font></p> </td>
        <td width="3%" valign=top >

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'>
<font size=4><b>&#149;</b></font></p> </td>
        <td  valign=top >

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'>
<font size=2>The Company saw significant improvement in operations related to United Solar Ovonic
which had increased product sales ($20,896,000 (an 86% increase compared to last year) and
$39,043,000 in the three and six months ended December 31, 2005, respectively, compared to
$11,235,000 and $24,211,000 for the respective 2004 periods).  In addition, United Solar Ovonic had
gross profit of $4,425,000 (21.2% gross profit margin) and $7,992,000 (20.5% gross profit margin)
for the three and six months ended December 31, 2005, respectively, compared to negative margin of
$220,000 in the three months ended December 31, 2004 and a margin of $389,000 in the six months
ended December 31, 2004.</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:11.06%; text-indent:-1.97%;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='margin-left:0pt;border-collapse:collapse'>
    <tr >
        <td width="11%" valign=top >

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'>
<font size=1>&nbsp;</font></p> </td>
        <td width="3%" valign=top >

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'>
<font size=4><b>&#149;</b></font></p> </td>
        <td  valign=top >

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'>
<font size=2>Revenues increased to $24,285,000 and $47,532,000 in the three months and six months
ended December 31, 2005, respectively, compared to $16,142,000 and $38,234,000 for the respective
2004 periods, excluding the one-time, non-cash license fee of $79.5 million in 2004, due to the
increased product sales for United Solar Ovonic described above, somewhat offset by reduced revenues
from royalties and revenues from research and development agreements, described below.</font></p>
</td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:7.58%;text-align:left;'><font size=2>
&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:7.58%;text-align:left;'><font size=2>Other
major factors that impacted the change in net income (loss) compared to the prior year&#146;s, for
both the three- and six-month periods, were:</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:7.58%;text-align:left;'><font size=2>
&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='margin-left:0pt;border-collapse:collapse'>
    <tr >
        <td width="11%" valign=top style='padding:0in 0in 5.0pt 0in'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:5.0pt'>
<font size=1>&nbsp;</font></p> </td>
        <td width="3%" valign=top style='padding:0in 0in 5.0pt 0in'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'>
<font size=4><b>&#149;</b></font></p> </td>
        <td  valign=top style='padding:0in 0in 5.0pt 0in'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'>
<font size=2>A gain of $740,000, in December 2005, from the sale of Ovonic Battery&#146;s metal
hydride manufacturing business.  The sale agreement provides for the new owners to supply materials
needed by ECD and Ovonic Battery.  The more significant impact is a reduction in future operating
costs, another important step in our restructuring and commercialization program, which advances our
objective to attain sustained profitability.</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='margin-left:0pt;border-collapse:collapse'>
    <tr >
        <td width="11%" valign=top style='padding:7.0pt 0in 0in 0in'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:7.0pt;margin-bottom:0pt'>
<font size=1>&nbsp;</font></p> </td>
        <td width="3%" valign=top style='padding:7.0pt 0in 0in 0in'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'>
<font size=4><b>&#149;</b></font></p> </td>
        <td  valign=top style='padding:7.0pt 0in 0in 0in'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'>
<font size=2>In 2004: </font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='margin-left:0pt;border-collapse:collapse'>
    <tr >
        <td width="17%" valign=top style='padding:5.0pt 0in 0in 0in'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:5.0pt;margin-bottom:0pt'>
<font size=1>&nbsp;</font></p> </td>
        <td width="3%" valign=top style='padding:5.0pt 0in 0in 0in'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'>
<font size=4><b>&#149;</b></font></p> </td>
        <td  valign=top style='padding:5.0pt 0in 0in 0in'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'>
<font size=2>$2,266,000 extraordinary gain related to the transfer of Chevron&#146;s interest in
Ovonic Hydrogen Systems to the Company.</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>- more -</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>
<br>
<HR noshade align="center" width="100%" size="2">
<p style='page-break-before:always'></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>- 4 -</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='margin-left:0pt;border-collapse:collapse'>
    <tr >
        <td width="17%" valign=top style='padding:5.0pt 0in 0in 0in'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:5.0pt;margin-bottom:0pt'>
<font size=1>&nbsp;</font></p> </td>
        <td width="3%" valign=top style='padding:5.0pt 0in 0in 0in'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'>
<font size=4><b>&#149;</b></font></p> </td>
        <td  valign=top style='padding:5.0pt 0in 0in 0in'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'>
<font size=2>$8,000,000 income resulting from a distribution from our joint venture Cobasys
representing a partial reimbursement of legal expenses related to the settlement agreement in July
2004 with MEI, PEVE and Toyota.   </font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='margin-left:0pt;border-collapse:collapse'>
    <tr >
        <td width="17%" valign=top style='padding:5.0pt 0in 0in 0in'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:5.0pt;margin-bottom:0pt'>
<font size=1>&nbsp;</font></p> </td>
        <td width="3%" valign=top style='padding:5.0pt 0in 0in 0in'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'>
<font size=4><b>&#149;</b></font></p> </td>
        <td  valign=top style='padding:5.0pt 0in 0in 0in'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'>
<font size=2>$1,710,000 impairment loss for Rare-Earth Ovonic.</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:7.58%;text-align:left;'><font size=2>As
shown in the table below, overall spending for product development and research decreased as a
result of our restructuring program; external funding has also decreased adversely affecting our
operating results.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<table ALIGN=Center width="99%" border="0" cellspacing=0 cellpadding=0 style='border-collapse:collapse'>


<TR VALIGN=Bottom>


     <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2></FONT></TD>
     <TD COLSPAN=6 ALIGN=CENTER><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">Three Months Ended<br><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;December 31,&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> </FONT></TD>
     <TD COLSPAN=6 ALIGN=CENTER><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">Six Months Ended<br><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;December 31,&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> </FONT></TD></TR>

<TR VALIGN=Bottom>
     <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2></FONT></TD>
     <TD COLSPAN=3 ALIGN=CENTER><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2005&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> </FONT></TD>
     <TD COLSPAN=3 ALIGN=CENTER><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2004&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> </FONT></TD>
     <TD COLSPAN=3 ALIGN=CENTER><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2005&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> </FONT></TD>
     <TD COLSPAN=3 ALIGN=CENTER><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2004&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> </FONT></TD></TR>

<TR VALIGN=Bottom>
     <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2></FONT></TD>
     <TD COLSPAN=12 ALIGN=CENTER><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>(in thousands)<br><br></FONT></TD></TR>


<TR VALIGN=Bottom>
     <TD WIDTH=56% ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Cost of revenues from product<BR>&nbsp;&nbsp;&nbsp;development agreements</FONT></TD>

     <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>$</FONT></TD> <TD WIDTH=9% ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>  1,932</FONT></TD>  <TD WIDTH=1% ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>$</FONT></TD> <TD WIDTH=9% ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>  4,505</FONT></TD>  <TD WIDTH=1% ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>$</FONT></TD> <TD WIDTH=9% ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>  3,803</FONT></TD>  <TD WIDTH=1% ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>$</FONT></TD> <TD WIDTH=9% ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2> 10,116</FONT></TD>  <TD WIDTH=1% ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD></TR>

<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Product development and research</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD> <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>7,773</FONT> </TD> <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD> <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>6,841</FONT> </TD> <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD> <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>16,278</FONT></TD> <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD> <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>12,889</FONT></TD> <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD></TR>

<TR>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> </TD>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> <HR WIDTH="100%" size="1" COLOR="Black" ALIGN="Left" NOSHADE="Noshade"></TD>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> <HR WIDTH="100%" size="1" COLOR="Black" ALIGN="Left" NOSHADE="Noshade"></TD>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> </TD>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> <HR WIDTH="100%" size="1" COLOR="Black" ALIGN="Left" NOSHADE="Noshade"></TD>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> <HR WIDTH="100%" size="1" COLOR="Black" ALIGN="Left" NOSHADE="Noshade"></TD>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> </TD>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> <HR WIDTH="100%" size="1" COLOR="Black" ALIGN="Left" NOSHADE="Noshade"></TD>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> <HR WIDTH="100%" size="1" COLOR="Black" ALIGN="Left" NOSHADE="Noshade"></TD>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> </TD>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> <HR WIDTH="100%" size="1" COLOR="Black" ALIGN="Left" NOSHADE="Noshade"></TD>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> <HR WIDTH="100%" size="1" COLOR="Black" ALIGN="Left" NOSHADE="Noshade"></TD>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> </TD></TR>

<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total cost of product<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;development</FONT></TD>

     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD> <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>9,705</FONT></TD> <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>11,346</FONT></TD> <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>20,081</FONT></TD> <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>23,005</FONT></TD> <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD></TR>

<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Revenues from product development<br>&nbsp;&nbsp;&nbsp;agreements</FONT></TD>

     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>1,868</FONT></TD> <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>5,416</FONT></TD> <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>4,180</FONT></TD> <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>11,328</FONT></TD> <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> </TD>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> <HR WIDTH="100%" size="1" COLOR="Black" ALIGN="Left" NOSHADE="Noshade"></TD>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> <HR WIDTH="100%" size="1" COLOR="Black" ALIGN="Left" NOSHADE="Noshade"></TD>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> </TD>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> <HR WIDTH="100%" size="1" COLOR="Black" ALIGN="Left" NOSHADE="Noshade"></TD>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> <HR WIDTH="100%" size="1" COLOR="Black" ALIGN="Left" NOSHADE="Noshade"></TD>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> </TD>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> <HR WIDTH="100%" size="1" COLOR="Black" ALIGN="Left" NOSHADE="Noshade"></TD>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> <HR WIDTH="100%" size="1" COLOR="Black" ALIGN="Left" NOSHADE="Noshade"></TD>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> </TD>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> <HR WIDTH="100%" size="1" COLOR="Black" ALIGN="Left" NOSHADE="Noshade"></TD>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> <HR WIDTH="100%" size="1" COLOR="Black" ALIGN="Left" NOSHADE="Noshade"></TD>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> </TD></TR>

<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cost of product development</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>$</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>  7,837</FONT></TD> <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>$</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>  5,930</FONT></TD> <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>$</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2> 15,901</FONT></TD> <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>$</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2> 11,677</FONT></TD> <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> </TD>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> <HR WIDTH="100%" size="2" COLOR="Black" ALIGN="Left" NOSHADE="Noshade"></TD>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> <HR WIDTH="100%" size="2" COLOR="Black" ALIGN="Left" NOSHADE="Noshade"></TD>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> </TD>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> <HR WIDTH="100%" size="2" COLOR="Black" ALIGN="Left" NOSHADE="Noshade"></TD>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> <HR WIDTH="100%" size="2" COLOR="Black" ALIGN="Left" NOSHADE="Noshade"></TD>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> </TD>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> <HR WIDTH="100%" size="2" COLOR="Black" ALIGN="Left" NOSHADE="Noshade"></TD>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> <HR WIDTH="100%" size="2" COLOR="Black" ALIGN="Left" NOSHADE="Noshade"></TD>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> </TD>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> <HR WIDTH="100%" size="2" COLOR="Black" ALIGN="Left" NOSHADE="Noshade"></TD>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> <HR WIDTH="100%" size="2" COLOR="Black" ALIGN="Left" NOSHADE="Noshade"></TD>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> </TD></TR>

</TABLE>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:11.36%;text-align:left;'><font size=2>
&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='margin-left:0pt;border-collapse:collapse'>
    <tr >
        <td width="9%" valign=top >

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'>
<font size=1>&nbsp;</font></p> </td>
        <td width="3%" valign=top >

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'>
<font size=4><b>&#149;</b></font></p> </td>
        <td  valign=top >

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'>
<font size=2>Royalties were lower in the current year compared to last year.  Last year&#146;s
royalties were impacted by the one-time, non-cash recognition of deferred royalties paid many years
prior for which licensees no longer had a requirement to make payments.  The quarterly results were
impacted by a change in estimate that did not affect the year-to-date results.</font></p> </td>
</tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<table ALIGN=Center width="96%" border="0" cellspacing=0 cellpadding=0 style='border-collapse:collapse'>


<TR VALIGN=Bottom>

     <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2></FONT></TD>
     <TD COLSPAN=6 ALIGN=CENTER><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">Three Months Ended<br><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;December 31,&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> </FONT></TD>
     <TD COLSPAN=6 ALIGN=CENTER><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">Six Months Ended<br><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;December 31,&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> </FONT></TD></TR>

<TR VALIGN=Bottom>
     <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2></FONT></TD>
     <TD COLSPAN=3 ALIGN=CENTER><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2005&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> </FONT></TD>
     <TD COLSPAN=3 ALIGN=CENTER><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2004&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> </FONT></TD>
     <TD COLSPAN=3 ALIGN=CENTER><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2005&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> </FONT></TD>
     <TD COLSPAN=3 ALIGN=CENTER><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2004&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> </FONT></TD></TR>



<TR VALIGN=Bottom>
     <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2></FONT></TD>
     <TD COLSPAN=12 ALIGN=CENTER><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>(in thousands)<br><br></FONT></TD></TR>

<TR VALIGN=Bottom>
     <TD WIDTH=40% ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Royalties</FONT></TD>

     <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>$</FONT></TD><TD WIDTH=10% ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2> 331</FONT></TD> <TD WIDTH=4% ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>$</FONT></TD><TD WIDTH=7% ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2> 1,497</FONT></TD>  <TD WIDTH=4% ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>$</FONT></TD><TD WIDTH=7% ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2> 1,514</FONT></TD>  <TD WIDTH=4% ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>$</FONT></TD><TD WIDTH=7% ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2> 3,076</FONT></TD>  <TD WIDTH=2% ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Recognition of deferred royalties</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=CENTER><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&#151;</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>686</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=CENTER><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&#151;</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>1,811</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> </TD>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> <HR WIDTH="100%" size="1" COLOR="Black" ALIGN="Left" NOSHADE="Noshade"></TD>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> <HR WIDTH="100%" size="1" COLOR="Black" ALIGN="Left" NOSHADE="Noshade"></TD>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> </TD>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> <HR WIDTH="100%" size="1" COLOR="Black" ALIGN="Left" NOSHADE="Noshade"></TD>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> <HR WIDTH="100%" size="1" COLOR="Black" ALIGN="Left" NOSHADE="Noshade"></TD>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> </TD>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> <HR WIDTH="100%" size="1" COLOR="Black" ALIGN="Left" NOSHADE="Noshade"></TD>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> <HR WIDTH="100%" size="1" COLOR="Black" ALIGN="Left" NOSHADE="Noshade"></TD>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> </TD>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> <HR WIDTH="100%" size="1" COLOR="Black" ALIGN="Left" NOSHADE="Noshade"></TD>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> <HR WIDTH="100%" size="1" COLOR="Black" ALIGN="Left" NOSHADE="Noshade"></TD>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> </TD></TR>

<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Current royalties</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>$</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>   331</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>$</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>   811</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>$</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2> 1,514</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>$</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2> 1,265</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> </TD>
      <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT> <HR WIDTH="100%" size="2" COLOR="Black" ALIGN="Left" NOSHADE="Noshade"></TD>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:2pt;text-align:left;'><font size=2>Conference Call
Information:</font></p>

<p style=' margin-bottom:0pt; margin-top:4pt; text-indent:7.58%;text-align:left;'><font size=2>
Additional information about the Company and its consolidated financial results can be found in the
Company's Quarterly Report on Form 10-Q for the quarter ended December 31, 2005 which will be filed
with the Securities and Exchange Commission, and will be available on the Company&#146;s website, on
February 9, 2006.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:7.58%;text-align:left;'><font size=2>
&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:7.58%;text-align:left;'><font size=2>ECD
Ovonics will hold a conference call on Wednesday, February 8, 2006, at 4:45 p.m. (Eastern Standard
Time) to discuss operating results for its second quarter of fiscal year 2006. To access the
conference call, please call (877) 858-2512 or (706) 634-1291.  A live webcast of the conference
call will be available online at http://www.ovonic.com/investor or through the Company&#146;s
website at www.ovonic.com.  A replay of the call will be available approximately one hour after the
conclusion of the call through Friday, February 10, 2006, at (800) 642-1687 or </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>- more -</font></p>

<HR noshade align="center" width="100%" size="2">
<p style='page-break-before:always'></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>- 5 -</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>(706) 645-9291.  Callers
should use conference ID #4857751 to access the conference call and the replay.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<table border="0" cellspacing=0 cellpadding=0 width="100" style='margin-left:0pt;border-collapse:collapse'>
    <tr >
        <td width="100%" valign=top style='padding:2.0pt 0in 0in 0in'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'>
<font size=2>About ECD Ovonics:</font></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:4pt;text-align:left;'><font size=2>ECD Ovonics is the
leader in the synthesis of new materials and the development of advanced production technology and
innovative products. It has invented, pioneered and developed its proprietary, enabling technologies
in the fields of energy and information leading to new products and production processes based on
amorphous, disordered and related materials.  The Company's portfolio of alternative energy
solutions includes Ovonic thin-film amorphous solar cells, modules, panels and systems for
generating solar electric power; Ovonic NiMH batteries; Ovonic hydride storage materials capable of
storing hydrogen in the solid state for use as a feedstock for fuel cells or internal combustion
engines or as an enhancement or replacement for any type of hydrocarbon fuel; and Ovonic fuel cell
technology. ECD Ovonics' proprietary advanced information technologies include Ovonic phase-change
electrical memory, Ovonic
phase-change optical memory and the Ovonic Threshold Switch.  ECD Ovonics designs and builds
manufacturing machinery that incorporates its proprietary production processes, maintains ongoing
research and development programs to continually improve its products and develops new applications
for its technologies. ECD Ovonics holds the basic patents in its fields. More information on ECD
Ovonics is available on www.ovonic.com.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>###</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><i><font size=2>This release may
contain forward-looking statements within the meaning of the Safe Harbor Provisions of the Private
Securities Litigation Reform Act of 1995.  Such forward-looking statements are based on assumptions
which ECD Ovonics, as of the date of this release, believes to be reasonable and appropriate.  ECD
Ovonics cautions, however, that the actual facts and conditions that may exist in the future could
vary materially from the assumed facts and conditions upon which such forward-looking statements are
based.  The risk factors identified in the ECD Ovonics filings with the Securities and Exchange
Commission, including the Company&#146;s most recent Annual Report on Form 10-K and the
Company&#146;s most recent Quarterly Report on Form 10-Q (copies of which may be obtained at the
Company&#146;s website at www.ovonic.com), could impact any forward-looking statements contained in
this release.</font></i></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:2pt;text-align:justify;'><b><font size=2>Contacts:</font>
</b></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='margin-left:0pt;border-collapse:collapse'>
    <tr >
        <td width="50%" valign=top style='padding:4.0pt 0in 0in 0in'>

<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'>
<font size=2>Stephan Zumsteg, Vice President and CFO</font></p> </td>
        <td width="50%" valign=top style='padding:4.0pt 0in 0in 0in'>

<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'>
<font size=2>Bruce MacDonald</font></p> </td> </tr>
    <tr >
        <td width="50%" valign=top >

<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'>
<font size=2>Ghazaleh Koefod, Investor Relations</font></p> </td>
        <td width="50%" valign=top >

<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'>
<font size=2>Liebler!MacDonald</font></p> </td> </tr>
    <tr >
        <td width="50%" valign=top >

<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'>
<font size=2>Energy Conversion Devices, Inc.</font></p> </td>
        <td width="50%" valign=top >

<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'>
<font size=2>248.233.8062</font></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>248.293.0440</font>
</p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


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