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<SEC-DOCUMENT>0000032878-06-000068.txt : 20060511
<SEC-HEADER>0000032878-06-000068.hdr.sgml : 20060511
<ACCEPTANCE-DATETIME>20060511170900
ACCESSION NUMBER:		0000032878-06-000068
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20060509
ITEM INFORMATION:		Regulation FD Disclosure
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20060511
DATE AS OF CHANGE:		20060511

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			ENERGY CONVERSION DEVICES INC
		CENTRAL INDEX KEY:			0000032878
		STANDARD INDUSTRIAL CLASSIFICATION:	MISCELLANEOUS ELECTRICAL MACHINERY, EQUIPMENT & SUPPLIES [3690]
		IRS NUMBER:				381749884
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			0630

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-08403
		FILM NUMBER:		06831037

	BUSINESS ADDRESS:	
		STREET 1:		2956 WATERVIEW DRIVE
		CITY:			ROCHESTER HILLS
		STATE:			MI
		ZIP:			48309
		BUSINESS PHONE:		248-293-0440

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	ENERGY CONVERSION LABORATORIES INC
		DATE OF NAME CHANGE:	19710603
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>form8k_050906release.htm
<DESCRIPTION>FURNISHING Q3 FY 2006 RELEASE OF 5.9.06
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<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center"><FONT face="Arial, Helvetica, Sans-Serif" size=2>UNITED STATES</FONT></P>

<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center"><FONT face="Arial, Helvetica, Sans-Serif" size=2>SECURITIES AND EXCHANGE COMMISSION</FONT></P>

<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 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-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center"><B><FONT face="Arial, Helvetica, Sans-Serif" size=2>FORM 8-K</FONT></B></P>

<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center"><FONT face="Arial, Helvetica, Sans-Serif" size=2></FONT>&nbsp;</P>

<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center"><FONT face="Arial, Helvetica, Sans-Serif" size=2>CURRENT REPORT</FONT></P>

<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center"><FONT face="Arial, Helvetica, Sans-Serif" size=2></FONT>&nbsp;</P>

<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 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-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"><FONT face="Arial, Helvetica, Sans-Serif" size=2></FONT>&nbsp;</P>

<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 7.69%; TEXT-INDENT: -7.69%; TEXT-ALIGN: justify"><FONT face="Arial, Helvetica, Sans-Serif" size=2>&nbsp; </FONT></P>

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<TD vAlign=top align=left width="50%"><FONT face="Arial, Helvetica, Sans-Serif" size=2>Date of Report (Date of earliest event reported)</FONT> </TD>
<TD vAlign=top align=left width="50%"><FONT face="Arial, Helvetica, Sans-Serif" size=2>&nbsp;&nbsp;&nbsp;May 9, 2006</FONT>
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<TD vAlign=top align=center width="100%"><FONT face="Arial, Helvetica, Sans-Serif" size=2>ENERGY CONVERSION DEVICES, INC.</FONT> <BR>
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<TD vAlign=top align=left width="100%"><FONT face="Arial, Helvetica, Sans-Serif" size=2>(Exact name of registrant as specified in its charter)</FONT></TD></TR>
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<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 1pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><FONT face="Arial, Helvetica, Sans-Serif" size=2>DELAWARE </FONT></P>
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<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 1pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: center"><FONT face="Arial, Helvetica, Sans-Serif" size=2>1-8403 </FONT></P>
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<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 1pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: center"><FONT face="Arial, Helvetica, Sans-Serif" size=2>38-1749884</FONT></P>
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<P style="MARGIN-TOP: 1.5pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><FONT face="Arial, Helvetica, Sans-Serif" size=2>(State or Other Jurisdiction<BR>of Incorporation)</FONT></P>
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<TD vAlign=top width="15%">
<P style="MARGIN-TOP: 1.5pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: center"><FONT face="Arial, Helvetica, Sans-Serif" size=2>(Commission<BR>File Number)</FONT></P>
</TD>
<TD vAlign=top width="40%">
<P style="MARGIN-TOP: 1.5pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: center"><FONT face="Arial, Helvetica, Sans-Serif" size=2>(I.R.S. Employer<BR>Identification No.)</FONT></P>
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<BR>
<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: justify"><FONT face="Arial, Helvetica, Sans-Serif" size=2></FONT>&nbsp;</P>

<TABLE style="MARGIN-LEFT: 5.4pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="97%" border=0>
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<TD style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" vAlign=top width="64%">
<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 1.5pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><FONT face="Arial, Helvetica, Sans-Serif" size=2>2956 Waterview Drive, Rochester Hills, Michigan</FONT></P>
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<TD style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" vAlign=top width="35%">
<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 1.5pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: center"><FONT face="Arial, Helvetica, Sans-Serif" size=2>48309 </FONT></P>
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</TD>
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<TR>
<TD style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" vAlign=top width="64%">
<P style="MARGIN-TOP: 1.5pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><FONT face="Arial, Helvetica, Sans-Serif" size=2>(Address of principal executive offices)</FONT></P>
</TD>
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<P style="MARGIN-TOP: 1.5pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: center"><FONT face="Arial, Helvetica, Sans-Serif" size=2>(Zip Code)</FONT></P>
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<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: justify"><FONT face="Arial, Helvetica, Sans-Serif" size=2></FONT>&nbsp;</P>

<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 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>

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<TD vAlign=top width="8%">
<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: justify"><FONT size=1>&nbsp; </FONT></P>
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<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: justify"><FONT face="Arial, Helvetica, Sans-Serif" size=2>Former name, former address and former fiscal year, if changed since last report.</FONT></P>
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<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 7.69%; TEXT-ALIGN: justify"><FONT face="Arial, Helvetica, Sans-Serif" size=2></FONT>&nbsp;</P>

<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 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-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: justify"><FONT face="Arial, Helvetica, Sans-Serif" size=2></FONT>&nbsp;</P>

<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 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-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: justify"><FONT face="Arial, Helvetica, Sans-Serif" size=2></FONT>&nbsp;</P>

<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 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-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: justify"><FONT face="Arial, Helvetica, Sans-Serif" size=2></FONT>&nbsp;</P>

<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 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-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: justify"><FONT face="Arial, Helvetica, Sans-Serif" size=2></FONT>&nbsp;</P>

<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 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>
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<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>

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<P><FONT face="Arial, Helvetica, Sans-Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On May 9, 2006, Energy Conversion Devices, Inc. issued a press release announcing its consolidated financial results for the quarter ended&nbsp;March 31, 2006. A copy of the press release is furnished as Exhibit 99.1 to this report. </FONT></P>

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<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>

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<P><FONT face="Arial, Helvetica, Sans-Serif" size=2>(a)&nbsp;&nbsp;&nbsp;&nbsp; Not applicable. </FONT></P>

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<P><FONT face="Arial, Helvetica, Sans-Serif" size=2>(b)&nbsp;&nbsp;&nbsp;&nbsp; Not applicable. </FONT></P>

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<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 May 9, 2006 reporting consolidated financial results for<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the quarter ended&nbsp;March 31, 2006. </FONT></TD></TR>
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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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<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></TR>
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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>
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<FONT face="Arial, Helvetica, Sans-Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Vice President and Chief Financial Officer</FONT> </TD></TR>
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<P align=left><FONT face="Arial, Helvetica, Sans-Serif" size=2>Date:&nbsp;May 11, 2006 </FONT></P>
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<P align=center><FONT face="Arial, Helvetica, Sans-Serif" size=2><U>Exhibit Index</U></FONT></P>

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<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 align=center width="30%"><FONT face="Arial, Helvetica, Sans-Serif" size=2>99.1</FONT> </TD>
<TD align=left width="60%"><FONT face="Arial, Helvetica, Sans-Serif" size=2>Press release dated May 9, 2006 reporting consolidated<BR>financial results for the quarter ended&nbsp;March 31, 2006</FONT> </TD></TR>
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<FILENAME>pressrelease.htm
<DESCRIPTION>PRESS RELEASE OF 5-9-06
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<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center"><B><FONT size=2>Energy Conversion Devices (ECD Ovonics) Announces</FONT></B></P>

<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center"><B><FONT size=2>Third Quarter Fiscal 2006 Operating Results</FONT></B></P>

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<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><FONT size=4><B>&#149;</B></FONT></P>
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<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><I><FONT size=2>United Solar Ovonic posts record results for quarter:</FONT></I></P>
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<P style="MARGIN-TOP: 0in; MARGIN-BOTTOM: 6pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><FONT size=1></FONT>&nbsp;</P>
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<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><FONT size=2>o</FONT></P>
</TD>
<TD style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 6pt; PADDING-TOP: 0in" vAlign=top>
<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><I><FONT size=2>operating profit of $2.6 million, marking five consecutive quarters of increasing gross profit margins</FONT></I></P>
</TD></TR>
</TABLE>


<TABLE style="MARGIN-LEFT: 0pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>
<TR>
<TD style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 6pt; PADDING-TOP: 0in" vAlign=top width="11%">
<P style="MARGIN-TOP: 0in; MARGIN-BOTTOM: 6pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 6pt; PADDING-TOP: 0in" vAlign=top width="3%">
<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><FONT size=2>o</FONT></P>
</TD>
<TD style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 6pt; PADDING-TOP: 0in" vAlign=top>
<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><I><FONT size=2>product sales increased 69% to $21 million compared to last year</FONT></I></P>
</TD></TR>
</TABLE>


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<TR>
<TD style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 6pt; PADDING-TOP: 0in" vAlign=top width="11%">
<P style="MARGIN-TOP: 0in; MARGIN-BOTTOM: 6pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 6pt; PADDING-TOP: 0in" vAlign=top width="3%">
<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><FONT size=2>o</FONT></P>
</TD>
<TD style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 6pt; PADDING-TOP: 0in" vAlign=top>
<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><I><FONT size=2>produced above the 25MW annual capacity of its manufacturing plant</FONT></I></P>
</TD></TR>
</TABLE>


<TABLE style="MARGIN-LEFT: 0pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>
<TR>
<TD style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 6pt; PADDING-TOP: 0in" vAlign=top width="3%">
<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 6pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 6pt; PADDING-TOP: 0in" vAlign=top width="3%">
<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><FONT size=4><B>&#149;</B></FONT></P>
</TD>
<TD style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 6pt; PADDING-TOP: 0in" vAlign=top>
<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><I><FONT size=2>ECD Ovonics&#146; Board of Directors approved a plan to expand United Solar Ovonic&#146;s annual manufacturing capacity to 300MW in calendar year 2010; the second 25MW plant is on schedule to be launched in the fall of 2006; the next phase of the plan is the construction of a 50MW annual capacity manufacturing facility in Greenville, Michigan, to be operational in calendar year 2007</FONT></I></P>
</TD></TR>
</TABLE>


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<TR>
<TD style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 6pt; PADDING-TOP: 0in" vAlign=top width="3%">
<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 6pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 6pt; PADDING-TOP: 0in" vAlign=top width="3%">
<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><FONT size=4><B>&#149;</B></FONT></P>
</TD>
<TD style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 6pt; PADDING-TOP: 0in" vAlign=top>
<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><I><FONT size=2>ECD Ovonics successfully completed an equity offering with total gross proceeds to ECD Ovonics of approximately $376 million, principally to fund United Solar Ovonic&#146;s capacity expansion</FONT></I></P>
</TD></TR>
</TABLE>


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<TR>
<TD style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 6pt; PADDING-TOP: 0in" vAlign=top width="3%">
<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 6pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 6pt; PADDING-TOP: 0in" vAlign=top width="3%">
<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><FONT size=4><B>&#149;</B></FONT></P>
</TD>
<TD style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 6pt; PADDING-TOP: 0in" vAlign=top>
<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><I><FONT size=2>Cobasys selected to supply advanced NiMHax 36-volt Ovonic nickel metal hydride battery systems for GM's 2007 Saturn VUE Green Line SUV expected to be available to consumers in the summer of 2006</FONT></I></P>
</TD></TR>
</TABLE>


<TABLE style="MARGIN-LEFT: 0pt; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0>
<TR>
<TD style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 6pt; PADDING-TOP: 0in" vAlign=top width="3%">
<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 6pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 6pt; PADDING-TOP: 0in" vAlign=top width="3%">
<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><FONT size=4><B>&#149;</B></FONT></P>
</TD>
<TD style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 6pt; PADDING-TOP: 0in" vAlign=top>
<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><I><FONT size=2>Ovonic Hydrogen Systems LLC showcased a high-tech hydrogen-powered hybrid vehicle using its proprietary solid metal hydrogen storage technology at the recent Society of Automotive Engineers World Congress in Detroit, Michigan</FONT></I></P>
</TD></TR>
</TABLE>


<P style="MARGIN-TOP: 12pt; MARGIN-BOTTOM: 12pt; TEXT-INDENT: 7.81%; TEXT-ALIGN: left"><FONT size=2>Rochester Hills, Mich., May 9, 2006 &#151; Energy Conversion Devices, Inc. (ECD Ovonics) (NASDAQ:ENER) announced today its operating results for the third quarter ended March 31, 2006. Net loss for the third quarter was $5.6 million on revenues of $27.0 million compared to net loss of $11.2 million on revenues of $17.9 million for the same quarter last year. </FONT></P>

<P style="MARGIN-TOP: 12pt; MARGIN-BOTTOM: 12pt; TEXT-INDENT: 7.81%; TEXT-ALIGN: left"><FONT size=2>"The third quarter was extremely exciting for us and confirmed our strategy to rapidly expand United Solar Ovonic&#146;s manufacturing capacity. Successful completion of our equity offering and the strong performance at United Solar Ovonic indicate that we are on the right track to growth and profitability. With the continued success of our Uni-Solar products, we were honored to have President Bush visit United Solar Ovonic to highlight his energy initiative," commented Robert C. Stempel, Chairman and CEO of ECD Ovonics.</FONT></P>

<P style="MARGIN-TOP: 12pt; MARGIN-BOTTOM: 12pt; TEXT-INDENT: 7.81%; TEXT-ALIGN: left"><FONT size=2>&#147;The new reality of higher oil prices continues to bring increased attention and a sense of urgency to the alternative energy sector where ECD Ovonics has been a major international player,&#148; said Stanford R. Ovshinsky, President, Chief Scientist and Technologist of ECD Ovonics. &#147;This has translated into record sales at United Solar Ovonic and the award of a contract to Cobasys by General Motors&#146; Saturn VUE for Cobasys&#146; advanced Ovonic NiMH battery solutions.&#148; </FONT></P>

<P style="MARGIN-TOP: 12pt; MARGIN-BOTTOM: 12pt; TEXT-INDENT: 7.81%; TEXT-ALIGN: left"><FONT size=2>The</FONT><FONT color=#ff0000><FONT size=2> </FONT></FONT><FONT size=2>table below summarizes the Company&#146;s operating results (in thousands):</FONT></P>



<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 7.81%; TEXT-ALIGN: left"><FONT size=2></FONT>&nbsp;</P>


<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"><FONT size=2></FONT>&nbsp;</P>

<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"><FONT size=2></FONT>&nbsp;</P>

<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"><FONT size=2></FONT>&nbsp;</P>
<BR>
<HR align=center width="100%" noShade SIZE=2>

<P style="PAGE-BREAK-BEFORE: always"></P>

<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"><FONT size=2></FONT>&nbsp;</P>

<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"><FONT size=2></FONT>&nbsp;</P>

<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"><FONT size=2></FONT>&nbsp;</P>

<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>

<TR vAlign=bottom>
<TH><FONT face="Times New Roman, Times, Serif" size=2></FONT></TH>
<TH colSpan=3><FONT face="Times New Roman, Times, Serif" size=2></FONT></TH>
<TH colSpan=3><FONT face="Times New Roman, Times, Serif" size=2></FONT></TH>
<TH colSpan=3><FONT face="Times New Roman, Times, Serif" size=2></FONT></TH>
<TH colSpan=3><FONT face="Times New Roman, Times, Serif" size=2></FONT></TH></TR>



<TR vAlign=bottom>
<TD><FONT face="Times New Roman, Times, Serif" size=2></FONT></TD>
<TD colSpan=5 style="border-bottom: 1PX solid #000000" align=center><FONT face="Times New Roman, Times, Serif" size=2>Three Months Ended<BR>March 31,</FONT></TD>
<TD><FONT face="Times New Roman, Times, Serif" size=2></FONT></TD>
<TD><FONT face="Times New Roman, Times, Serif" size=2></FONT></TD>
<TD colSpan=5 style="border-bottom: 1PX solid #000000"  align=center><FONT face="Times New Roman, Times, Serif" size=2>Nine Months Ended<BR>March 31,</FONT></TD>
<TD><FONT face="Times New Roman, Times, Serif" size=2></FONT></TD></TR>


<TR vAlign=bottom>
<TD><FONT face="Times New Roman, Times, Serif" size=2></FONT></TD>
<TD colSpan=2 style="border-bottom: 1PX solid #000000"  align=center><FONT face="Times New Roman, Times, Serif" size=2>2006</FONT></TD>
<TD><FONT face="Times New Roman, Times, Serif" size=2></FONT></TD>
<TD colSpan=2 style="border-bottom: 1PX solid #000000"  align=center><FONT face="Times New Roman, Times, Serif" size=2>2005</FONT></TD>
<TD><FONT face="Times New Roman, Times, Serif" size=2></FONT></TD>
<TD colSpan=2 style="border-bottom: 1PX solid #000000"  align=center><FONT face="Times New Roman, Times, Serif" size=2>2006</FONT></TD>
<TD><FONT face="Times New Roman, Times, Serif" size=2></FONT></TD>
<TD colSpan=2 style="border-bottom: 1PX solid #000000"  align=center><FONT face="Times New Roman, Times, Serif" size=2>2005</FONT></TD>
<TD><FONT face="Times New Roman, Times, Serif" size=2></FONT></TD></TR>


<TR vAlign=bottom>
<TD><FONT face="Times New Roman, Times, Serif" size=2></FONT></TD>
<TD colSpan=12  align=center><FONT face="Times New Roman, Times, Serif" size=2>(in thousands, except per-share amounts)</FONT></TD></TR>








<TR vAlign=bottom>
<TD align=left width="50%"><FONT face="Times New Roman, Times, Serif" size=2>Revenues</FONT></TD>
<TD align=right width="1%"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right width="7%"><FONT face="Times New Roman, Times, Serif" size=2></FONT></TD>
<TD align=left width="3%"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right width="1%"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right width="7%"><FONT face="Times New Roman, Times, Serif" size=2></FONT></TD>
<TD align=left width="6%"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right width="1%"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right width="7%"><FONT face="Times New Roman, Times, Serif" size=2></FONT></TD>
<TD align=left width="3%"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right width="1%"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right width="7%"><FONT face="Times New Roman, Times, Serif" size=2></FONT></TD>
<TD align=left width="1%"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;Product Sales</FONT></TD>
<TD ALIGN="LEFT"><FONT face="Times New Roman, Times, Serif" size=2>$</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>21,401</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD ALIGN="LEFT"><FONT face="Times New Roman, Times, Serif" size=2>$</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>13,450</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD ALIGN="LEFT"><FONT face="Times New Roman, Times, Serif" size=2>$</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>62,349</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD ALIGN="LEFT"><FONT face="Times New Roman, Times, Serif" size=2>$</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>36,317</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;Royalties</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>1,704</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>670</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>3,218</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>3,746</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;Revenue from Product Development Agreements</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>3,267</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>3,362</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>7,448</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>14,690</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;Revenue from License and Other Agreements</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>288</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>238</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>784</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>80,246</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD></TR>

<TR vAlign=bottom>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;Other</FONT></TD>
<TD align=right style="border-bottom: 1PX solid #000000"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right style="border-bottom: 1PX solid #000000"><FONT face="Times New Roman, Times, Serif" size=2>297</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right style="border-bottom: 1PX solid #000000"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right style="border-bottom: 1PX solid #000000"><FONT face="Times New Roman, Times, Serif" size=2>176</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right style="border-bottom: 1PX solid #000000"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right style="border-bottom: 1PX solid #000000"><FONT face="Times New Roman, Times, Serif" size=2>691</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right style="border-bottom: 1PX solid #000000"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right style="border-bottom: 1PX solid #000000"><FONT face="Times New Roman, Times, Serif" size=2>662</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>Total Revenue</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>26,957</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>17,896</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>74,490</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>135,661</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD></TR>

<TR vAlign=bottom>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>Expenses</FONT></TD>
<TD align=right style="border-bottom: 1PX solid #000000"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right style="border-bottom: 1PX solid #000000"><FONT face="Times New Roman, Times, Serif" size=2>34,411</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right style="border-bottom: 1PX solid #000000"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right style="border-bottom: 1PX solid #000000"><FONT face="Times New Roman, Times, Serif" size=2>29,182</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right style="border-bottom: 1PX solid #000000"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right style="border-bottom: 1PX solid #000000"><FONT face="Times New Roman, Times, Serif" size=2>95,790</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right style="border-bottom: 1PX solid #000000"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right style="border-bottom: 1PX solid #000000"><FONT face="Times New Roman, Times, Serif" size=2>85,045</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>Income (Loss) from Operations</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>(7,454</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>)</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>(11,286</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>)</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>(21,300</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>)</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>50,616</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>Other Income (Expense)</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;Interest Income</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>1,933</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>409</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>3,530</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>595</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;Interest Expense</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD ALIGN="CENTER"><FONT face="Times New Roman, Times, Serif" size=2>&#150;</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>(70</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>)</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>(197</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>)</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>(541</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>)</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;Equity Loss in Joint Ventures</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>(105</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>)</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD ALIGN="CENTER"><FONT face="Times New Roman, Times, Serif" size=2>&#150;</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>(150</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>)</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>(100</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>)</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;Distribution from Joint Venture</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD ALIGN="CENTER"><FONT face="Times New Roman, Times, Serif" size=2>&#150;</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD ALIGN="CENTER"><FONT face="Times New Roman, Times, Serif" size=2>&#150;</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD ALIGN="CENTER"><FONT face="Times New Roman, Times, Serif" size=2>&#150;</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>8,000</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;Impairment Loss in Rare Earth Ovonic &#150; China</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD ALIGN="CENTER"><FONT face="Times New Roman, Times, Serif" size=2>&#150;</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD ALIGN="CENTER"><FONT face="Times New Roman, Times, Serif" size=2>&#150;</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD ALIGN="CENTER"><FONT face="Times New Roman, Times, Serif" size=2>&#150;</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>(1,710</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>)</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;Other Nonoperating Income (Expense)</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD ALIGN="CENTER"><FONT face="Times New Roman, Times, Serif" size=2>&#150;</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>(196</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>)</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>(24</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>)</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>77</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD></TR>

<TR vAlign=bottom>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>Total Other Income (Expense)</FONT></TD>
<TD align=right style="border-bottom: 1PX solid #000000"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right style="border-bottom: 1PX solid #000000"><FONT face="Times New Roman, Times, Serif" size=2>1,828</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right style="border-bottom: 1PX solid #000000"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right style="border-bottom: 1PX solid #000000"><FONT face="Times New Roman, Times, Serif" size=2>143</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right style="border-bottom: 1PX solid #000000"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right style="border-bottom: 1PX solid #000000"><FONT face="Times New Roman, Times, Serif" size=2>3,159</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right style="border-bottom: 1PX solid #000000"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right style="border-bottom: 1PX solid #000000"><FONT face="Times New Roman, Times, Serif" size=2>6,321</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD></TR>

<TR vAlign=bottom>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>Net Income (Loss) from Continuing Operations</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;Before Income Taxes and Extraordinary Item</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>(5,626</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>)</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>(11,143</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>)</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>(18,141</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>)</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>56,937</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD></TR>

<TR vAlign=bottom>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>Income Taxes (Benefit)</FONT></TD>
<TD align=right style="border-bottom: 1PX solid #000000"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD ALIGN="CENTER" STYLE="border-bottom: 1PX solid #000000"><FONT face="Times New Roman, Times, Serif" size=2>&#150;</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right style="border-bottom: 1PX solid #000000"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right style="border-bottom: 1PX solid #000000"><FONT face="Times New Roman, Times, Serif" size=2>(198</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>)</FONT></TD>
<TD align=right style="border-bottom: 1PX solid #000000"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD ALIGN="CENTER" STYLE="border-bottom: 1PX solid #000000"><FONT face="Times New Roman, Times, Serif" size=2>&#150;</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2></FONT></TD>
<TD align=right style="border-bottom: 1PX solid #000000"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right style="border-bottom: 1PX solid #000000"><FONT face="Times New Roman, Times, Serif" size=2>827</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>Net Income (Loss) from Continuing Operations</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;Before Extraordinary Item</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>(5,626</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>)</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>(10,945</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>)</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>(18,141</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>)</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>56,110</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>DISCONTINUED OPERATIONS (including gain on</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;disposition of discontinued operations of</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;$739,602 in the nine months ended March 31, 2006)</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD ALIGN="CENTER"><FONT face="Times New Roman, Times, Serif" size=2>&#150;</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>(305</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>)</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>314</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2></FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>(1,141</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>)</FONT></TD></TR>

<TR vAlign=bottom>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>Extraordinary Item (Net of Taxes)</FONT></TD>
<TD align=right style="border-bottom: 1PX solid #000000"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD ALIGN="CENTER" STYLE="border-bottom: 1PX solid #000000"><FONT face="Times New Roman, Times, Serif" size=2>&#150;</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right style="border-bottom: 1PX solid #000000"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD ALIGN="CENTER" STYLE="border-bottom: 1PX solid #000000"><FONT face="Times New Roman, Times, Serif" size=2>&#150;</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right style="border-bottom: 1PX solid #000000"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD ALIGN="CENTER" STYLE="border-bottom: 1PX solid #000000"><FONT face="Times New Roman, Times, Serif" size=2>&#150;</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2></FONT></TD>
<TD align=right style="border-bottom: 1PX solid #000000"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right style="border-bottom: 1PX solid #000000"><FONT face="Times New Roman, Times, Serif" size=2>2,266</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD></TR>

<TR vAlign=top>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>Net Income (Loss)</FONT></TD>
<TD align=left style="border-bottom: 3PX double #000000"><FONT face="Times New Roman, Times, Serif" size=2>$</FONT></TD>
<TD align=right style="border-bottom: 3PX double #000000"><FONT face="Times New Roman, Times, Serif" size=2>(5,626</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>)</FONT></TD>
<TD align=left style="border-bottom: 3PX double #000000"><FONT face="Times New Roman, Times, Serif" size=2>$</FONT></TD>
<TD align=right style="border-bottom: 3PX double #000000"><FONT face="Times New Roman, Times, Serif" size=2>(11,250</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>)</FONT></TD>
<TD align=left style="border-bottom: 3PX double #000000"><FONT face="Times New Roman, Times, Serif" size=2>$</FONT></TD>
<TD align=right style="border-bottom: 3PX double #000000"><FONT face="Times New Roman, Times, Serif" size=2>(17,827</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>)</FONT></TD>
<TD align=left style="border-bottom: 3PX double #000000"><FONT face="Times New Roman, Times, Serif" size=2>$</FONT></TD>
<TD align=right style="border-bottom: 3PX double #000000"><FONT face="Times New Roman, Times, Serif" size=2>57,235</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD></TR>

<TR vAlign=bottom>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>Basic Net Income (Loss) Per Share</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;Continuing Operations</FONT></TD>
<TD ALIGN="LEFT" ><FONT face="Times New Roman, Times, Serif" size=2>$</FONT></TD>
<TD align=right ><FONT face="Times New Roman, Times, Serif" size=2>(.17</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>)</FONT></TD>
<TD ALIGN="LEFT" ><FONT face="Times New Roman, Times, Serif" size=2>$</FONT></TD>
<TD align=right ><FONT face="Times New Roman, Times, Serif" size=2>(.38</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>)</FONT></TD>
<TD ALIGN="LEFT" ><FONT face="Times New Roman, Times, Serif" size=2>$</FONT></TD>
<TD align=right ><FONT face="Times New Roman, Times, Serif" size=2>(.60</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>)</FONT></TD>
<TD ALIGN="LEFT" ><FONT face="Times New Roman, Times, Serif" size=2>$</FONT></TD>
<TD align=right ><FONT face="Times New Roman, Times, Serif" size=2>2.12</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;Discontinued Operations</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD ALIGN="CENTER"><FONT face="Times New Roman, Times, Serif" size=2>&#150;</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>(.01</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>)</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>.01</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2></FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>(.04</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>)</FONT></TD></TR>

<TR vAlign=bottom>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;Extraordinary Item</FONT></TD>
<TD align=right style="border-bottom: 1PX solid #000000"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD ALIGN="CENTER" STYLE="border-bottom: 1PX solid #000000"><FONT face="Times New Roman, Times, Serif" size=2>&#150;</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right style="border-bottom: 1PX solid #000000"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD ALIGN="CENTER" STYLE="border-bottom: 1PX solid #000000"><FONT face="Times New Roman, Times, Serif" size=2>&#150;</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right style="border-bottom: 1PX solid #000000"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD ALIGN="CENTER" STYLE="border-bottom: 1PX solid #000000"><FONT face="Times New Roman, Times, Serif" size=2>&#150;</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2></FONT></TD>
<TD align=right style="border-bottom: 1PX solid #000000"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right style="border-bottom: 1PX solid #000000"><FONT face="Times New Roman, Times, Serif" size=2>.08</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD></TR>

<TR vAlign=top>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>Basic Net Income (Loss) Per Share</FONT></TD>
<TD ALIGN="LEFT" STYLE="border-bottom: 3PX double #000000"><FONT face="Times New Roman, Times, Serif" size=2>$</FONT></TD>
<TD align=right style="border-bottom: 3PX double #000000"><FONT face="Times New Roman, Times, Serif" size=2>(.17</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>)</FONT></TD>
<TD ALIGN="LEFT" STYLE="border-bottom: 3PX double #000000"><FONT face="Times New Roman, Times, Serif" size=2>$</FONT></TD>
<TD align=right style="border-bottom: 3PX double #000000"><FONT face="Times New Roman, Times, Serif" size=2>(.39</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>)</FONT></TD>
<TD ALIGN="LEFT" STYLE="border-bottom: 3PX double #000000"><FONT face="Times New Roman, Times, Serif" size=2>$</FONT></TD>
<TD align=right style="border-bottom: 3PX double #000000"><FONT face="Times New Roman, Times, Serif" size=2>(.59</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>)</FONT></TD>
<TD ALIGN="LEFT" STYLE="border-bottom: 3PX double #000000"><FONT face="Times New Roman, Times, Serif" size=2>$</FONT></TD>
<TD align=right style="border-bottom: 3PX double #000000"><FONT face="Times New Roman, Times, Serif" size=2>2.16</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD></TR>

<TR vAlign=bottom>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>Diluted Net Income (Loss) Per Share</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;Continuing Operations</FONT></TD>
<TD ALIGN="LEFT"><FONT face="Times New Roman, Times, Serif" size=2>$</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>(.17</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>)</FONT></TD>
<TD ALIGN="LEFT"><FONT face="Times New Roman, Times, Serif" size=2>$</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>(.38</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>)</FONT></TD>
<TD ALIGN="LEFT"><FONT face="Times New Roman, Times, Serif" size=2>$</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>(.60</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>)</FONT></TD>
<TD ALIGN="LEFT"><FONT face="Times New Roman, Times, Serif" size=2>$</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>2.04</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD></TR>

<TR vAlign=bottom>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;Discontinued Operations</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD ALIGN="CENTER"><FONT face="Times New Roman, Times, Serif" size=2>&#150;</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>(.01</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>)</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>.01</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2></FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right><FONT face="Times New Roman, Times, Serif" size=2>(.04</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>)</FONT></TD></TR>

<TR vAlign=bottom>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;Extraordinary Item</FONT></TD>
<TD align=right style="border-bottom: 1PX solid #000000"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD ALIGN="CENTER" STYLE="border-bottom: 1PX solid #000000"><FONT face="Times New Roman, Times, Serif" size=2>&#150;</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right style="border-bottom: 1PX solid #000000"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD ALIGN="CENTER" STYLE="border-bottom: 1PX solid #000000"><FONT face="Times New Roman, Times, Serif" size=2>&#150;</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right style="border-bottom: 1PX solid #000000"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD ALIGN="CENTER" STYLE="border-bottom: 1PX solid #000000"><FONT face="Times New Roman, Times, Serif" size=2>&#150;</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2></FONT></TD>
<TD align=right style="border-bottom: 1PX solid #000000"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=right style="border-bottom: 1PX solid #000000"><FONT face="Times New Roman, Times, Serif" size=2>.08</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD></TR>

<TR vAlign=top>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>Diluted Net Income (Loss) Per Share</FONT></TD>
<TD ALIGN="LEFT" STYLE="border-bottom: 3PX double #000000"><FONT face="Times New Roman, Times, Serif" size=2>$</FONT></TD>
<TD align=right style="border-bottom: 3PX double #000000"><FONT face="Times New Roman, Times, Serif" size=2>(.17</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>)</FONT></TD>
<TD ALIGN="LEFT" STYLE="border-bottom: 3PX double #000000"><FONT face="Times New Roman, Times, Serif" size=2>$</FONT></TD>
<TD align=right style="border-bottom: 3PX double #000000"><FONT face="Times New Roman, Times, Serif" size=2>(.39</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>)</FONT></TD>
<TD ALIGN="LEFT" STYLE="border-bottom: 3PX double #000000"><FONT face="Times New Roman, Times, Serif" size=2>$</FONT></TD>
<TD align=right style="border-bottom: 3PX double #000000"><FONT face="Times New Roman, Times, Serif" size=2>(.59</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>)</FONT></TD>
<TD ALIGN="LEFT" STYLE="border-bottom: 3PX double #000000"><FONT face="Times New Roman, Times, Serif" size=2>$</FONT></TD>
<TD align=right style="border-bottom: 3PX double #000000"><FONT face="Times New Roman, Times, Serif" size=2>2.08</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD></TR>
</TABLE>


<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 7.81%; TEXT-ALIGN: justify"><FONT size=2></FONT>&nbsp;</P>

<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 7.81%; TEXT-ALIGN: justify"><FONT size=2>The Company&#146;s net loss decreased by $5.6 million as revenues grew by $9.1 million in the three months ended March 31, 2006 compared to the three months ended March 31, 2005.</FONT></P>

<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 7.81%; TEXT-ALIGN: justify"><FONT size=2></FONT>&nbsp;</P>

<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 7.81%; TEXT-ALIGN: justify"><FONT size=2>The major change in operating income (loss) resulted from United Solar Ovonic&#146;s product sales increasing 69% to $21,075,000 for 2006 compared to $12,495,000 for 2005. United Solar Ovonic&#146;s gross profit increased to $4,991,000 (23.7%) for 2006 compared to a gross profit of $1,282,000 (10.3%) for 2005.</FONT></P>

<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 7.81%; TEXT-ALIGN: justify"><FONT size=2></FONT>&nbsp;</P>

<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"><FONT size=2></FONT>&nbsp;</P>
<BR>
<HR align=center width="100%" noShade SIZE=2>

<P style="PAGE-BREAK-BEFORE: always"></P>

<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"><FONT size=2></FONT>&nbsp;</P>

<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"><FONT size=2></FONT>&nbsp;</P>

<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 7.81%; TEXT-ALIGN: justify"><FONT size=2>The Company had a net loss of $17,827,000 in the nine months ended March 31, 2006, compared to a net loss of $22,297,000 in the nine months ended March 31, 2005 (excluding a one-time non-cash license fee of $79,532,000 in connection with an expanded license granted to its Cobasys joint venture). Excluding this one-time, non-cash license fee, the net loss of $17,827,000 in the nine months ended March 31, 2006 decreased by $4,470,000. The Company reported a net income of $57,235,000 for the nine months ended March 31, 2005, which included this one-time, non-cash license fee of $79,532,000.</FONT></P>

<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 7.81%; TEXT-ALIGN: justify"><FONT size=2></FONT>&nbsp;</P>

<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 7.81%; TEXT-ALIGN: justify"><FONT size=2>In addition to the aforementioned one-time, non-cash license fee of $79,532,000, other major changes in operating income (loss) were as follows:</FONT></P>

<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 7.81%; TEXT-ALIGN: justify"><FONT size=2></FONT>&nbsp;</P>

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<TR>
<TD vAlign=top width="11%">
<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: justify"><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD vAlign=top width="3%">
<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><FONT size=4><B>&#149;</B></FONT></P>
</TD>
<TD vAlign=top>
<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: justify"><FONT size=2>United Solar Ovonic&#146;s product sales increased 64% to $60,118,000 for 2006 compared to $36,707,000 for 2005. United Solar Ovonic&#146;s gross profit increased to $12,983,000 for 2006 compared to a gross profit of $1,670,000 for 2005.</FONT></P>
</TD></TR>
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<P style="MARGIN-TOP: 6pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: justify"><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; PADDING-TOP: 6pt" vAlign=top width="3%">
<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><FONT size=4><B>&#149;</B></FONT></P>
</TD>
<TD style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; PADDING-TOP: 6pt" vAlign=top>
<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: justify"><FONT size=2>Overall spending for product development and research decreased by $1,713,000 as a result of our restructuring program; however, funding decreased by $7,242,000 resulting in an increase of $5,530,000 in the net cost of product development.</FONT></P>
</TD></TR>
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<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: justify"><FONT size=2></FONT>&nbsp;</P>

<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 7.81%; TEXT-ALIGN: justify"><FONT size=2>For the nine months ended March 31, 2006, the Company had a gain from discontinued operations of $314,000, and for the nine months ended March 31, 2005, the loss from discontinued operations was $1,141,000. </FONT></P>

<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 7.81%; TEXT-ALIGN: justify"><FONT size=2></FONT>&nbsp;</P>

<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 7.81%; TEXT-ALIGN: justify"><FONT size=2>Other major factors that impacted the change in net income (loss) compared to the nine months ended March 31, 2005 were:</FONT></P>

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<TD style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; PADDING-TOP: 6pt" vAlign=top width="11%">
<P style="MARGIN-TOP: 6pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: justify"><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; PADDING-TOP: 6pt" vAlign=top width="3%">
<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><FONT size=4><B>&#149;</B></FONT></P>
</TD>
<TD style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; PADDING-TOP: 6pt" vAlign=top>
<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: justify"><FONT size=2>Interest income increased by $1,524,000 for the quarter and $2,935,000 year to date due to higher interest rates and a significant increase in cash and short-term investments.</FONT></P>
</TD></TR>
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<TR>
<TD style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; PADDING-TOP: 6pt" vAlign=top width="11%">
<P style="MARGIN-TOP: 6pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: justify"><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; PADDING-TOP: 6pt" vAlign=top width="3%">
<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><FONT size=4><B>&#149;</B></FONT></P>
</TD>
<TD style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; PADDING-TOP: 6pt" vAlign=top>
<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: justify"><FONT size=2>$2,266,000 extraordinary gain in 2005 due to payment received from Chevron in excess of restructuring costs.</FONT></P>
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<TD style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; PADDING-TOP: 6pt" vAlign=top width="11%">
<P style="MARGIN-TOP: 6pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: justify"><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; PADDING-TOP: 6pt" vAlign=top width="3%">
<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><FONT size=4><B>&#149;</B></FONT></P>
</TD>
<TD style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; PADDING-TOP: 6pt" vAlign=top>
<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: justify"><FONT size=2>$8,000,000 income in 2005 resulting from a distribution from our joint venture Cobasys related to a partial reimbursement of legal fees related to the MEI settlement.</FONT></P>
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<TD style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; PADDING-TOP: 6pt" vAlign=top width="11%">
<P style="MARGIN-TOP: 6pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: justify"><FONT size=1></FONT>&nbsp;</P>
</TD>
<TD style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; PADDING-TOP: 6pt" vAlign=top width="3%">
<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><FONT size=4><B>&#149;</B></FONT></P>
</TD>
<TD style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; PADDING-TOP: 6pt" vAlign=top>
<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: justify"><FONT size=2>$1,710,000 impairment loss in 2005 for Rare-Earth Ovonic joint ventures in China.</FONT></P>
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<P style="MARGIN-TOP: 12pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"><B><FONT size=2>Conference Call Information</FONT></B></P>

<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; 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 March 31, 2006 which will be filed with the Securities and Exchange Commission on May 10, 2006 and will be available on the Company's website.</FONT></P>

<P style="MARGIN-TOP: 12pt; MARGIN-BOTTOM: 12pt; TEXT-ALIGN: left"><FONT size=2>ECD Ovonics will hold a conference call on Tuesday, May 9, 2006, at 4:45 p.m. (Eastern Daylight Time) to discuss operating results for its third 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 on the Company&#146;s website. A replay of the call will be available approximately one hour after the conclusion of the call through midnight Friday, </FONT></P>

<P style="MARGIN-TOP: 12pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"><FONT size=2></FONT>&nbsp;</P>
<BR>
<HR align=center width="100%" noShade SIZE=2>

<P style="PAGE-BREAK-BEFORE: always"></P>

<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"><FONT size=2></FONT>&nbsp;</P>

<P style="MARGIN-TOP: 12pt; MARGIN-BOTTOM: 12pt; TEXT-ALIGN: left"><FONT size=2>May 12, 2006, at (800) 642-1687 or (706) 645-9291. Callers should use conference </FONT><B><FONT size=2>ID 8543890</FONT></B><FONT size=2> to access the conference call and the replay.</FONT></P>

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<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><B><FONT size=2>About ECD Ovonics</FONT></B></P>
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<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; 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.</FONT></P>

<P style="MARGIN-TOP: 6pt; MARGIN-BOTTOM: 6pt; TEXT-ALIGN: center"><FONT size=2>###</FONT></P>

<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 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 its automatic shelf registration statement and related prospectus supplement, 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 could impact any forward-looking statements contained in this release.</FONT></I></P>

<P style="MARGIN-TOP: 12pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: justify"><B><FONT size=2>Contacts:</FONT></B></P>


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<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: justify"><FONT size=2>Stephan Zumsteg, Vice President and CFO</FONT></P>
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<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: justify"><FONT size=2>&nbsp;</FONT></P>
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<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: justify"><FONT size=2>Bruce MacDonald</FONT></P>
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<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: justify"><FONT size=2>Ghazaleh Koefod, Investor Relations<br>Energy Conversion Devices, Inc.<br>248.293.0440</FONT></P>
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<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: justify"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Liebler!MacDonald<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;248.233.8062</FONT></P>
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