<SUBMISSION>
<ACCESSION-NUMBER>0000032878-06-000136
<TYPE>8-K
<PUBLIC-DOCUMENT-COUNT>2
<PERIOD>20061109
<ITEMS>2.02
<ITEMS>9.01
<FILING-DATE>20061113
<DATE-OF-FILING-DATE-CHANGE>20061113
<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>061208761
</FILING-VALUES>
<BUSINESS-ADDRESS>
<STREET1>2956 WATERVIEW DRIVE
<CITY>ROCHESTER HILLS
<STATE>MI
<ZIP>48309
<PHONE>248-293-0440
</BUSINESS-ADDRESS>
<MAIL-ADDRESS>
<STREET1>2956 WATERVIEW DRIVE
<CITY>ROCHESTER HILLS
<STATE>MI
<ZIP>48309
</MAIL-ADDRESS>
<FORMER-COMPANY>
<FORMER-CONFORMED-NAME>ENERGY CONVERSION LABORATORIES INC
<DATE-CHANGED>19710603
</FORMER-COMPANY>
</FILER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>form8-k_110906release.htm
<DESCRIPTION>PRESS RELEASE OF 11/9/06 (Q1FY07 RESULTS)
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<TD vAlign=top noWrap align=center width=600><FONT face="Arial, Helvetica, Sans-Serif" size=2>UNITED STATES</FONT></TD></TR>
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<TD vAlign=top noWrap align=center width=600><FONT face="Arial, Helvetica, Sans-Serif" size=2>SECURITIES AND EXCHANGE COMMISSION</FONT></TD></TR>
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<TD vAlign=top noWrap align=center width=600><FONT face="Arial, Helvetica, Sans-Serif" size=2>WASHINGTON, D.C. 20549</FONT></TD></TR>
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<TD vAlign=top noWrap align=center width=600><FONT face="Arial, Helvetica, Sans-Serif" size=2>FORM 8-K</FONT></TD></TR>
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<TD vAlign=top noWrap align=center width=600><FONT face="Arial, Helvetica, Sans-Serif" size=2>CURRENT REPORT</FONT> </TD></TR>
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<TD vAlign=top noWrap 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></TD></TR>
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<TD vAlign=top noWrap align=left width=300><FONT face="Arial, Helvetica, Sans-Serif" size=2>Date of Report (Date of earliest event reported) </FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=top noWrap align=left width=300><FONT face="Arial, Helvetica, Sans-Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;November 9, 2006</FONT></TD></TR>
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<TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=top noWrap align=center><FONT face="Arial, Helvetica, Sans-Serif" size=2>ENERGY CONVERSION DEVICES, INC.</FONT></TD></TR>
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<TD vAlign=top noWrap align=left><FONT face="Arial, Helvetica, Sans-Serif" size=2>(Exact Name of Registrant as Specified in Charter)</FONT></TD></TR>
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<TD style="TEXT-INDENT: 20pt; BORDER-BOTTOM: #000000 1px solid" vAlign=top noWrap align=left width=250><FONT face="Arial, Helvetica, Sans-Serif" size=2>Delaware </FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=top noWrap align=center width=120><FONT face="Arial, Helvetica, Sans-Serif" size=2>1-8403 </FONT></TD>
<TD style="TEXT-INDENT: 60pt; BORDER-BOTTOM: #000000 1px solid" vAlign=top noWrap align=left width=230><FONT face="Arial, Helvetica, Sans-Serif" size=2>38-1749884</FONT></TD></TR>
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<TD style="TEXT-INDENT: 7pt" vAlign=top noWrap align=left width=250><FONT face="Arial, Helvetica, Sans-Serif" size=2>(State or Other Jurisdiction</FONT></TD>
<TD vAlign=top noWrap align=center width=120><FONT face="Arial, Helvetica, Sans-Serif" size=2>(Commission</FONT></TD>
<TD style="TEXT-INDENT: 49pt" vAlign=top noWrap align=left width=230><FONT face="Arial, Helvetica, Sans-Serif" size=2>(IRS Employer</FONT></TD></TR>
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<TD style="TEXT-INDENT: 7pt" vAlign=top noWrap align=left width=250><FONT face="Arial, Helvetica, Sans-Serif" size=2>of Incorporation) </FONT></TD>
<TD vAlign=top noWrap align=center width=120><FONT face="Arial, Helvetica, Sans-Serif" size=2>File Number)</FONT></TD>
<TD style="TEXT-INDENT: 49pt" vAlign=top noWrap align=left width=230><FONT face="Arial, Helvetica, Sans-Serif" size=2>Identification No.)</FONT></TD></TR>
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<TD style="TEXT-INDENT: 0pt; BORDER-BOTTOM: #000000 1px solid" vAlign=top align=left width=370><FONT face="Arial, Helvetica, Sans-Serif" size=2>2956 Waterview Drive, Rochester Hills, MI</FONT></TD>
<TD style="TEXT-INDENT: 59pt; BORDER-BOTTOM: #000000 1px solid" vAlign=top noWrap align=left width=230><FONT face="Arial, Helvetica, Sans-Serif" size=2>48309</FONT></TD></TR>
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<TD style="TEXT-INDENT: 0pt" vAlign=top align=left width=370><FONT face="Arial, Helvetica, Sans-Serif" size=2>(Address of Principal Executive Offices)</FONT></TD>
<TD style="TEXT-INDENT: 49pt" vAlign=top noWrap align=left width=230><FONT face="Arial, Helvetica, Sans-Serif" size=2>(Zip Code)</FONT></TD></TR>
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<TD vAlign=top noWrap align=left width=315><FONT face="Arial, Helvetica, Sans-Serif" size=2>Registrant's telephone number, including area code</FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=top noWrap align=left width=285><FONT face="Arial, Helvetica, Sans-Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(248) 293-0440</FONT></TD></TR>
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<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"><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 provision (see General Instruction A.2 below):</FONT></P>

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<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><U><FONT size=2>Item 2.02</FONT></U></P>
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<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><U><FONT size=2>Results of Operations and Financial Condition</FONT></U></P>
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<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 0.5in; TEXT-ALIGN: left"><FONT size=2>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 style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 0.5in; TEXT-ALIGN: left"><FONT size=2>On November&nbsp;9, 2006, Energy Conversion Devices, Inc.&nbsp;issued a press release announcing its consolidated financial results for the quarter ended September 30, 2006.&nbsp; A copy of&nbsp;the press release is furnished&nbsp;as Exhibit 99.1 to this report.</FONT></P>



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<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><U><FONT size=2>Financial Statements and Exhibits</FONT></U></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>Exhibits:</FONT></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>Press release dated November 9, 2006 reporting consolidated financial results for the quarter ended September 30, 2006.</FONT></P>
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<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><U><FONT size=2>SIGNATURES</FONT></U></P>
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<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 0.5in; TEXT-ALIGN: left"><FONT size=2>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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<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 3in; TEXT-ALIGN: left"><FONT size=2>ENERGY CONVERSION DEVICES, INC.</FONT></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>By:</FONT></P>
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<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><U><FONT size=2>/s/ Sanjeev Kumar&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT></U></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>Vice President and Chief Financial Officer </FONT></P>
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<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"><FONT size=2>Date: November 13, 2006</FONT></P>

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<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center"><U><FONT size=2>EXHIBIT INDEX</FONT></U></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>Press release dated November 9, 2006 reporting consolidated financial results for the quarter ended September 30, 2006</FONT></P>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><B><FONT FACE="Times New Roman, Times, Serif" SIZE=2>ENERGY CONVERSION DEVICES REPORTS </font></B></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><B><FONT FACE="Times New Roman, Times, Serif" SIZE=2>FIRST QUARTER 2007 OPERATING RESULTS</font></B></p>

<p style=' margin-bottom:6pt; margin-top:12pt; text-indent:7.81%;text-align:left;'><b><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Rochester Hills, Mich.</font></b><FONT FACE="Times New Roman, Times, Serif" SIZE=2>, Nov. 9, 2006 &#150; Energy Conversion Devices, Inc. (ECD Ovonics) (NASDAQ:ENER) today reported its results for the first quarter ended September&nbsp;30, 2006.  The company reported a net loss of $2.3 million (or $0.06 per share) on revenues of $27.2 million in the first quarter of fiscal 2007, as compared to a net loss of $6.5 million (or $0.22 per share) on revenues of $23.2 million in the first quarter of fiscal 2006.</font></p>

<p style=' margin-bottom:6pt; margin-top:6pt; text-indent:7.81%;text-align:left;'><FONT FACE="Times New Roman, Times, Serif" SIZE=2>"We are building on the momentum from last year and beginning our 2007 fiscal year with a solid first quarter of improved performance,&#148; said Chairman and CEO Robert C. Stempel.  &#147;Our new manufacturing capacity is coming online at just the right time for growing demand in our United Solar Ovonic segment, and increasing commercial acceptance of products in our Cobasys and Ovonyx joint ventures presents exciting opportunities.&#148;</font></p>

<p style=' margin-bottom:6pt; margin-top:6pt; text-indent:7.81%;text-align:left;'><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The following are highlights from ECD Ovonics&#146; first quarter of 2007:</font></p>


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            <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>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><FONT FACE="Times New Roman, Times, Serif" SIZE=2>ECD Ovonics&#146; wholly owned subsidiary United Solar Ovonic had operating income of $1.5 million on revenues of $23.9 million in the first quarter of fiscal 2007, as compared to operating income of $1.7 million on revenues of $19.4 million in the first quarter of fiscal 2006.  The first quarter 2007 fiscal year results include a $1 million increase in the allowance for uncollectible accounts for one of our major customers.</font></p> </td> </tr></table>
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            <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>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><FONT FACE="Times New Roman, Times, Serif" SIZE=2>United Solar Ovonic&#146;s gross profit margin was 24% in the first quarter of fiscal 2007, up from 20% in the first quarter of fiscal 2006 reflecting increased production and sales.</font></p> </td> </tr></table>
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            <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>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><FONT FACE="Times New Roman, Times, Serif" SIZE=2>United Solar Ovonic&#146;s solar modules have been installed and activated in a 1MW array on a General Motors&#146; parts warehouse in Rancho Cucamonga, Calif.  Importantly, this project was privately financed under a long-term power purchase agreement in which General Motors purchases electricity produced from the array rather than fund the up-front capital costs. This installation is expected to provide up to half of the building&#146;s electricity and reduce overall electricity costs.</font></p> </td> </tr></table>
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            <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>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
United Solar Ovonic currently has 28MW of annual production capacity at its Auburn Hills 1 location.  The company&#146;s new 30MW Auburn Hills 2 facility, which is a duplicate of its Auburn Hills 1 facility, is in the final testing stages and is on track to begin commercial production in the next 45 days.  Our expansion plan increases United Solar Ovonic&#146;s manufacturing capacity to 118MW, 178MW and over 300MW per annum by the end of calendar years 2007, 2008 and 2010, respectively.</font></p> </td> </tr></table>
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            <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>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><FONT FACE="Times New Roman, Times, Serif" SIZE=2>ECD Ovonics&#146; Production Technology and Machine Building Division is manufacturing and delivering the proprietary PV module manufacturing equipment for the new Auburn Hills 2 facility on budget and on schedule.  This division is continuously improving its manufacturing productivity, which will result in lower capital costs and shorter equipment manufacturing cycles for the announced Greenville, Mich. facilities, as well as for future expansion projects.</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><FONT FACE="Times New Roman, Times, Serif" SIZE=2>- more -</font></p>

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

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



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            <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>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><FONT FACE="Times New Roman, Times, Serif" SIZE=2>ECD Ovonics&#146; Cobasys LLC joint venture is supplying commercial volumes of its battery systems to General Motors for the new Saturn VUE Green Line hybrid.  The Saturn VUE hybrid is in dealer showrooms and on the road.</font></p> </td> </tr></table>
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            <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>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Cobasys, the only United States-based supplier of NiMH battery systems for hybrid electric vehicles, continued to successfully compete for new business opportunities, including selection by Enova Systems to provide its NiMHax&reg; battery system for integration into service vans for a major North American fleet operator.</font></p> </td> </tr></table>
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            <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>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Cobasys is supplying its NiMH battery systems for the Saturn VUE and others from its state-of-the-art manufacturing facility in Springboro, Ohio, which is fully certified to all standards required to be a supplier to the automakers.  Cobasys recently completed its first TS16949 quality standard surveillance audit, an exacting set of principles that define the quality management system requirements for the design, development and manufacture of products for the automotive industry.</font></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: 6.0pt'><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</font></p> </td>
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            <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>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><FONT FACE="Times New Roman, Times, Serif" SIZE=2>ECD Ovonics&#146; Ovonyx, Inc. joint venture licensees continue to make substantial progress toward commercialization.  For example, Samsung Electronics Co., Ltd. announced prototypes of its next generation NOR flash, which is based on OUM technology, indicating that commercial products are expected to be available in 2008.  Intel Corporation, as part of a joint venture with STMicroelectronics, also announced that it had produced prototypes of flash products based on OUM technology.</font></p> </td> </tr></table>
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            <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 6.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><FONT FACE="Times New Roman, Times, Serif" SIZE=2>ECD Ovonics&#146; combined research and development costs and net operating, general and administrative expenses increased by $2.1 million in the first quarter fiscal 2007 versus the first quarter fiscal 2006 primarily reflecting the growth in our solar business and the $1 million increase in the allowance for uncollectible accounts as discussed above.  The Company continues to pursue third-party funding, including strategic alliances and government contracts, to offset its funding requirements to carry on research and development activities to define and develop marketable technologies that can result in commercial products.</font></p> </td> </tr></table>
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            <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>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><FONT FACE="Times New Roman, Times, Serif" SIZE=2>ECD Ovonics&#146; Central Analytical Lab was granted ISO 17025 accreditation, representing the highest level of technical competence and quality for a testing facility.</font></p> </td> </tr></table>
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            <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>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><FONT FACE="Times New Roman, Times, Serif" SIZE=2>ECD Ovonics announced several corporate governance initiatives to further strengthen and improve its corporate governance structure, including the appointment of two new independent directors to its Board of Directors &#150; Pasquale Pistorio, the retired President and Chief Executive Officer of STMicroelectronics, and George A. Schreiber, Jr., President and Chief Executive Officer of SEMCO Energy, Inc.</font></p> </td> </tr></table>
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            <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>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><FONT FACE="Times New Roman, Times, Serif" SIZE=2>ECD Ovonics was selected as an inaugural constituent of the Ocean Tomo 300 Patent Index, a market-equity stock index priced and published by the American Stock Exchange, representing a diversified portfolio of 300 companies that own the most valuable patents relative to their book value.</font></p> </td> </tr></table>
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<p style=' margin-bottom:6pt; margin-top:6pt; text-indent:7.81%;text-align:left;'><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Mr. Stempel added, &#147;We continue to be positive about the future of our business and the markets in which we participate.  Demand for solar products is expanding globally, including here in the United States, with United Solar Ovonic strengthening its competitive position and growing through aggressive expansion plans.  Our Cobasys joint venture is at the forefront of the hybrid vehicle market, which represents the most exciting new market in the automotive industry.  And, of course, our Ovonyx joint venture&#146;s OUM technology is on the </font></p>

<p style=' margin-bottom:0pt; margin-top:6pt;text-align:left;'><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><FONT FACE="Times New Roman, Times, Serif" SIZE=2>- more -</font></p>

<p style=' margin-bottom:0pt; margin-top:6pt;text-align:left;'><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</font></p>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><FONT FACE="Times New Roman, Times, Serif" SIZE=2>- 3 -</font></p>

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

<p style=' margin-bottom:6pt; margin-top:6pt;text-align:left;'><FONT FACE="Times New Roman, Times, Serif" SIZE=2>cusp of commercialization in the global semiconductor market.  Overall, we see many exciting opportunities for ECD Ovonics&#146; technologies and products that are increasingly needed in our changing world.&#148;</font></p>

<p style=' margin-bottom:6pt; margin-top:6pt; text-indent:7.81%;text-align:left;'><FONT FACE="Times New Roman, Times, Serif" 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 September 30, 2006, which was filed with the Securities and Exchange Commission today and will be available on the Company's website.</font></p>

<p style=' margin-bottom:6pt; margin-top:12pt;text-align:left;'><b><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Conference Call Information</font></b></p>

<p style=' margin-bottom:6pt; margin-top:6pt; text-indent:7.81%;text-align:left;'><FONT FACE="Times New Roman, Times, Serif" SIZE=2>ECD Ovonics will hold a conference call today, Thursday, November 9, at 5:00 p.m. (Eastern Standard Time) to discuss operating results for the first quarter ended September 30, 2006.  To access the conference call, please call (877) 858-2512 or (706) 634-1291.  A live webcast of the call will be available online at http://www.ovonic.com/investor or through the Company's website at www.ovonic.com.  A replay of the call will be available approximately one hour after the conclusion of the call through close of business on Monday, November 13, 2006, at (800) 642-1687 or (706) 645-9291.  Callers should use conference ID 1109335 to access the conference call and the replay.</font></p>

<p style=' margin-bottom:6pt; margin-top:12pt;text-align:left;'><b><FONT FACE="Times New Roman, Times, Serif" SIZE=2>About ECD Ovonics</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:7.81%;text-align:left;'><FONT FACE="Times New Roman, Times, Serif" 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 the Company is available on www.ovonic.com.</font></p>

<p style=' margin-bottom:4pt; margin-top:4pt;text-align:center;'><FONT FACE="Times New Roman, Times, Serif" SIZE=2>###</font></p>

<p style=' margin-bottom:12pt; margin-top:12pt;text-align:left; text-indent:7.81%;'><i><FONT FACE="Times New Roman, Times, Serif" 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, could impact any forward-looking statements contained in this release.</font></i></p>

<p style=' margin-bottom:2pt; margin-top:8pt;text-align:justify;'><u><b><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Contacts</font></b></u><b><FONT FACE="Times New Roman, Times, Serif" SIZE=2>:</font></b></p>


<div align=left>

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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</font></p> </td>
        <td width="72%" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Sanjeev Kumar, Vice President and CFO<br>Ghazaleh Koefod, Investor Relations<BR>Energy Conversion Devices, Inc.<br>248.293.0440</font></p> </td>
        <td width="24%" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Bruce MacDonald<BR>Liebler!MacDonald<BR>248.233.8062</font></p> </td> </tr></table>
</div>


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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><FONT FACE="Times New Roman, Times, Serif" SIZE=2>- more -</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</font></p>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><FONT FACE="Times New Roman, Times, Serif" SIZE=2>- 4 -</font></p>

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


<p style=' margin-bottom:0pt; margin-top:2pt;text-align:center;'><B><FONT FACE="Times New Roman, Times, Serif" SIZE=2>ENERGY CONVERSION DEVICES, INC. AND SUBSIDIARIES</font></B></p>

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><U><B><FONT FACE="Times New Roman, Times, Serif" SIZE=2>CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS</font></B></U></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(In thousands, except per share data)</font></b></p>

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


<div align=left>

<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=98%>
<TR VALIGN=Bottom>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
     <TD COLSPAN=5 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Three Months Ended<BR>September 30,</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 ALIGN=CENTER STYLE="BORDER-BOTTOM: 1PX SOLID #000000">
<FONT FACE="Times New Roman, Times, Serif" SIZE=2>2006</FONT></TD>
       <TD WIDTH="3%"><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT>&nbsp;</TD>
    <TD COLSPAN=2 ALIGN=CENTER STYLE="BORDER-BOTTOM: 1PX SOLID #000000">
<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" STYLE="padding-TOP:1em;">
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
     <TD COLSPAN=6 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(Unaudited)</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD></TR>

<TR VALIGN="Bottom">
     <TD WIDTH=60% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>REVENUES</FONT></TD>
     <TD WIDTH="1%" ALIGN="Left"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=9% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
        <TD WIDTH=4% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD WIDTH="1%" ALIGN="Left"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=9% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
        <TD WIDTH=1% 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;Product sales</FONT></TD>
     <TD ALIGN="Left"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD><TD ALIGN=RIGHT>
<FONT FACE="Times New Roman, Times, Serif" SIZE=2>22,858</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="Left"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD><TD ALIGN=RIGHT>
<FONT FACE="Times New Roman, Times, Serif" SIZE=2>19,267</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;Royalties</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>664</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>&nbsp;</FONT></TD>
<TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1,183</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;Revenues from product development agreements</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>2,954</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>&nbsp;</FONT></TD>
<TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1,897</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;Revenues from product development agreements with related parties</FONT></TD>
     <TD ALIGN=LEFT 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>151</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=LEFT 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>415</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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total revenues from product development agreements</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>3,105</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>&nbsp;</FONT></TD>
<TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2,312</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;Revenues from license and other agreements</FONT></TD>
     <TD ALIGN=LEFT 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>555</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=LEFT 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>486</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN="Bottom" STYLE="padding-top:0.1em; padding-BOTTOM:0.5em;">
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&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;TOTAL REVENUES</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>27,182</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>&nbsp;</FONT></TD>
<TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>23,248</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN="Bottom" STYLE="padding-top:0.2em;">
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>EXPENSES</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;Cost of product sales</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>18,004</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>&nbsp;</FONT></TD>
<TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>15,860</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;Cost of revenues from product development agreements</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>2,574</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>&nbsp;</FONT></TD>
<TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1,871</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;Product development and research</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>8,175</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>&nbsp;</FONT></TD>
<TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>8,505</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;Operating, general and administrative (net) and patents</FONT></TD>
     <TD ALIGN=LEFT 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>5,773</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=LEFT 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>3,796</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN="Bottom" STYLE="padding-top:0.1em; padding-BOTTOM:0.5em;">
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&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;TOTAL EXPENSES</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>34,526</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>&nbsp;</FONT></TD>
<TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>30,032</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN="Bottom" STYLE="padding-top:0.5em;">
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>LOSS FROM OPERATIONS</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>(7,344</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>&nbsp;</FONT></TD>
<TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(6,784</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>Interest and other income (expense), net</FONT></TD>
     <TD ALIGN=LEFT 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>5,042</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=LEFT 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>576</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN="Bottom" STYLE="padding-top:0.1em;">
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>NET LOSS FROM CONTINUING OPERATIONS</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>(2,302</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>&nbsp;</FONT></TD>
<TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(6,208</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD></TR>
<TR VALIGN="Bottom" STYLE="padding-top:0.1em; padding-BOTTOM:0.5em;">
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>LOSS FROM DISCONTINUED OPERATIONS</FONT></TD>
     <TD ALIGN=LEFT 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>&#151;</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=LEFT 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>(258</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD></TR>
<TR VALIGN="top" STYLE="padding-top:0.1em;">
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>NET LOSS</FONT></TD>
     <TD ALIGN=LEFT STYLE="BORDER-BOTTOM: 3PX DOUBLE #000000"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
<TD ALIGN=RIGHT STYLE="BORDER-BOTTOM: 3PX DOUBLE #000000"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(2,302</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
     <TD ALIGN=LEFT STYLE="BORDER-BOTTOM: 3PX DOUBLE #000000"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
<TD ALIGN=RIGHT STYLE="BORDER-BOTTOM: 3PX DOUBLE #000000"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(6,466</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD></TR>
<TR VALIGN=Bottom  STYLE="padding-top:0.5em; padding-BOTTOM:0.1em;">
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Basic Net Loss Per Share</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Continuing operations</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
<TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(.06</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
<TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(.21</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD></TR>
<TR VALIGN=Bottom  STYLE="padding-top:0.1em;">
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Discontinued operations</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>&#151;</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=LEFT 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>(.01</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD></TR>
<TR VALIGN=top>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=LEFT STYLE="BORDER-BOTTOM: 3PX DOUBLE #000000"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
<TD ALIGN=RIGHT STYLE="BORDER-BOTTOM: 3PX DOUBLE #000000"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(.06</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
     <TD ALIGN=LEFT STYLE="BORDER-BOTTOM: 3PX DOUBLE #000000"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
<TD ALIGN=RIGHT STYLE="BORDER-BOTTOM: 3PX DOUBLE #000000"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(.22</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD></TR>
<TR VALIGN=Bottom STYLE="padding-top:0.2em;">
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Diluted Net Loss Per Share</FONT></TD></TR>
<TR VALIGN=Bottom  STYLE="padding-top:0.1em;">
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Continuing operations</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
<TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(.06</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
<TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(.21</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD></TR>
<TR VALIGN=Bottom STYLE="padding-top:0.1em;">
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Discontinued operations</FONT></TD>
     <TD ALIGN=LEFT 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>&#151;</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=LEFT 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>(.01</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD></TR>
<TR VALIGN=top>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=LEFT STYLE="BORDER-BOTTOM: 3PX DOUBLE #000000"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
<TD ALIGN=RIGHT STYLE="BORDER-BOTTOM: 3PX DOUBLE #000000"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(.06</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
     <TD ALIGN=LEFT STYLE="BORDER-BOTTOM: 3PX DOUBLE #000000"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
<TD ALIGN=RIGHT STYLE="BORDER-BOTTOM: 3PX DOUBLE #000000"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(.22</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD></TR>
<TR VALIGN=Bottom  STYLE="padding-top:0.2em;">
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Shares used in calculation of net income per share:</FONT></TD></TR>
<TR VALIGN=Bottom STYLE="padding-top:0.1em;">
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Basic</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>39,070</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>&nbsp;</FONT></TD>
<TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>29,016</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom STYLE="padding-top:0.1em;">
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Diluted</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>39,070</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>&nbsp;</FONT></TD>
<TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>29,016</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
</TABLE>
</div>

<p style=' margin-bottom:0pt; margin-top:2pt;text-align:center;'><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
</font></p>

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><FONT FACE="Times New Roman, Times, Serif" SIZE=2>- more -</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</font></p>
<!-- EEDocs PBStart-->
<HR noshade align="center" width="100%" size="2">
<p style='page-break-before:always'></p>
<!-- EEDocs PBEnd-->

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><FONT FACE="Times New Roman, Times, Serif" SIZE=2>- 5 -</font></p>

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

<p style=' margin-bottom:0pt; margin-top:2pt;text-align:center;'><B><FONT FACE="Times New Roman, Times, Serif" SIZE=2>ENERGY CONVERSION DEVICES, INC. AND SUBSIDIARIES</font></B></p>

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><U><B><FONT FACE="Times New Roman, Times, Serif" SIZE=2>CONDENSED CONSOLIDATED BALANCE SHEETS</font></B></U></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(In Thousands)</font></b></p>

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

<div align=left>

<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=98%>
<TR VALIGN=Bottom>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD COLSPAN=2 ALIGN=CENTER STYLE="BORDER-BOTTOM: 1PX SOLID #000000"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Septembert30,<BR>2006</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN=CENTER STYLE="BORDER-BOTTOM: 1PX SOLID #000000"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>June 30,<BR>2006</FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN="Bottom" STYLE="padding-BOTTOM:1em;">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD COLSPAN=2 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(Unaudited)</FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD COLSPAN=2 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>

<TR VALIGN="Bottom">
     <TD WIDTH=60% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>ASSETS</FONT></TD>
     <TD WIDTH=1% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=9% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
        <TD WIDTH=4% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD WIDTH=1% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=8% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
        <TD WIDTH=1% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN="Bottom" STYLE="padding-top:0.1em; padding-BOTTOM:0.1em;">
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Cash and cash equivalents</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
<TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>  63,360</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
<TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 164,962</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN="Bottom" STYLE="padding-top:0.1em; padding-BOTTOM:0.1em;">
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Short-term investments</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>314,355</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>&nbsp;</FONT></TD>
<TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>239,505</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN="Bottom" STYLE="padding-top:0.1em; padding-BOTTOM:0.1em;">
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable, net</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>27,953</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>&nbsp;</FONT></TD>
<TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>27,885</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN="Bottom" STYLE="padding-top:0.1em; padding-BOTTOM:0.1em;">
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Inventories</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>22,986</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>&nbsp;</FONT></TD>
<TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>21,527</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN="Bottom" STYLE="padding-top:0.1em; padding-BOTTOM:0.1em;">
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Property, plant and equipment (net)</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>162,732</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>&nbsp;</FONT></TD>
<TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>138,231</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN="Bottom" STYLE="padding-top:0.1em; padding-BOTTOM:0.1em;">
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Other</FONT></TD>
     <TD ALIGN=LEFT 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>5,198</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=LEFT 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>4,232</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN="Bottom" STYLE="padding-BOTTOM:0.1em; padding-top:0.1em;">
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;TOTAL ASSETS</FONT></TD>
     <TD ALIGN=LEFT style="border-bottom: 3px DOUBLE #000000"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
<TD ALIGN=RIGHT style="border-bottom: 3px DOUBLE #000000"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>596,584</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=LEFT style="border-bottom: 3px DOUBLE #000000"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
<TD ALIGN=RIGHT style="border-bottom: 3px DOUBLE #000000"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>596,342</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>

<TR VALIGN="Bottom" STYLE="padding-top:0.5em;">
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;LIABILITIES AND STOCKHOLDERS EQUITY</FONT></TD></TR>
<TR VALIGN="Bottom" STYLE="padding-top:0.1em; padding-BOTTOM:0.1em;">
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable and other liabilities</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
<TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>28,323</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
<TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>26,339</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN="Bottom" STYLE="padding-top:0.1em; padding-BOTTOM:0.1em;">
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Long-term liabilities</FONT></TD>
     <TD ALIGN=LEFT 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>32,535</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=LEFT 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>32,982</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN="Bottom" STYLE="padding-top:0.1em; padding-BOTTOM:0.1em;">
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Liabilities</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>60,858</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>&nbsp;</FONT></TD>
<TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>59,321</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN="Bottom" STYLE="padding-top:0.1em; padding-BOTTOM:0.1em;">
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Stockholders equity</FONT></TD>
     <TD ALIGN=LEFT 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>535,726</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=LEFT 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>537,021</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>

<TR VALIGN="Bottom" STYLE="padding-top:0.1em; padding-BOTTOM:0.1em;">
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;TOTAL LIABILITIES AND STOCKHOLDERS EQUITY</FONT></TD>
     <TD ALIGN=LEFT style="border-bottom: 3px DOUBLE #000000"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
<TD ALIGN=RIGHT style="border-bottom: 3px DOUBLE #000000"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>596,584</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=LEFT style="border-bottom: 3px DOUBLE #000000"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
<TD ALIGN=RIGHT style="border-bottom: 3px DOUBLE #000000"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>596,342</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
</TABLE>
</Div>

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

<p style=' margin-bottom:0pt; margin-top:2pt;text-align:center;'><b><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
</font></b></p>

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><FONT FACE="Times New Roman, Times, Serif" SIZE=2>- more -</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</font></p>
<!-- EEDocs PBStart-->
<HR noshade align="center" width="100%" size="2">
<p style='page-break-before:always'></p>
<!-- EEDocs PBEnd-->

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><FONT FACE="Times New Roman, Times, Serif" SIZE=2>- 6 -</font></p>

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

<p style=' margin-bottom:0pt; margin-top:2pt;text-align:center;'><B><FONT FACE="Times New Roman, Times, Serif" SIZE=2>ENERGY CONVERSION DEVICES, INC. AND SUBSIDIARIES</font></B></p>

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><U><B><FONT FACE="Times New Roman, Times, Serif" SIZE=2>CONDENSED STATEMENTS OF CASH FLOWS</font></B></U></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(In Thousands)</font></b></p>

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


<div align=left>

<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=98%>

<TR VALIGN=Bottom>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD COLSPAN=5 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Three Months Ended<BR>Septembert 30,</FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD COLSPAN=2 ALIGN=CENTER STYLE="BORDER-BOTTOM: 1PX SOLID #000000">
<FONT FACE="Times New Roman, Times, Serif" SIZE=2>2006</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2 ALIGN=CENTER STYLE="BORDER-BOTTOM: 1PX SOLID #000000">
<FONT FACE="Times New Roman, Times, Serif" SIZE=2>2005</FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN="Bottom" STYLE="padding-BOTTOM:1em;">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD COLSPAN=5 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(Unaudited)</FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>

<TR VALIGN="Bottom">
     <TD WIDTH=60% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>OPERATING ACTIVITIES:</FONT></TD>
     <TD WIDTH=1% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=8% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
        <TD WIDTH=3% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD WIDTH=1% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=8% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
        <TD WIDTH=1% 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net loss</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
<TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(2,302</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
<TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(6,466</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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Adjustments to reconcile net loss to net cash used in</FONT></TD>
</TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;operating activities:</FONT></TD>
</TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization</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>1,982</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>1,982</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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Bad debt expense</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>1,051</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>25</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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization of premium/discount on investments</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>534</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>&#151;</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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stock and stock options issued for services rendered</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>603</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>999</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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other</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>147</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>(171</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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Changes in working capital</FONT></TD>
     <TD ALIGN=LEFT 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>(2,034</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
     <TD ALIGN=LEFT 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>(2,339</FONT></TD>
        <TD ALIGN=LEFT VALIGN=TOP><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD></TR>
<TR VALIGN="Bottom" STYLE="padding-top:0.5em;">
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;NET CASH USED IN OPERATING ACTIVITIES</FONT></TD>
     <TD ALIGN=LEFT 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>(19</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
     <TD ALIGN=LEFT 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>(5,970</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD></TR>
<TR VALIGN="Bottom" STYLE="padding-top:0.2em;">
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;INVESTING ACTIVITIES:</FONT></TD></TR>

<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Purchases of property, plant and equipment (including construction in progress)</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>(26,472</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>(10,643</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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Purchase (proceeds from sale) of investments</FONT></TD>
     <TD ALIGN=LEFT 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>(75,370</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
     <TD ALIGN=LEFT 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>11,841</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN="Bottom" STYLE="padding-top:0.5em;">
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES</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>(101,842</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>&nbsp;</FONT></TD>
<TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1,198</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN="Bottom" STYLE="padding-top:0.5em;">
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;NET CASH PROVIDED BY FINANCING ACTIVITIES</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>226</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>&nbsp;</FONT></TD>
<TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>9,265</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN="Bottom" STYLE="padding-top:0.5em;">
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;EFFECT OF EXCHANGE RATE CHANGES ON CASH AND</FONT></TD>
</TR>
<TR VALIGN="Bottom" STYLE="padding-top:0.2em;">
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;CASH EQUIVALENTS</FONT></TD>
     <TD ALIGN=LEFT 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>33</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=LEFT 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>(127</FONT></TD>
        <TD ALIGN=LEFT VALIGN=TOP><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD></TR>

<TR VALIGN="Bottom" STYLE="padding-top:0.5em;">
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;NET CASH FLOW</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>(101,602</FONT></TD>
        <TD ALIGN=LEFT VALIGN=TOP><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</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>4,366</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>





<TR VALIGN="Bottom" STYLE="padding-top:0.5em;">
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD</FONT></TD>
     <TD ALIGN=LEFT 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>164,962</FONT></TD>
        <TD ALIGN=LEFT VALIGN=TOP><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=LEFT 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>84,295</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>





<TR VALIGN="Bottom" STYLE="padding-top:0.5em;">
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;CASH AND CASH EQUIVALENTS AT END OF PERIOD</FONT></TD>
     <TD ALIGN=LEFT STYLE="BORDER-BOTTOM: 3PX DOUBLE #000000"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
<TD ALIGN=RIGHT STYLE="BORDER-BOTTOM: 3PX DOUBLE #000000"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>63,360</FONT></TD>
        <TD ALIGN=LEFT VALIGN=TOP><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=LEFT STYLE="BORDER-BOTTOM: 3PX DOUBLE #000000"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
<TD ALIGN=RIGHT STYLE="BORDER-BOTTOM: 3PX DOUBLE #000000"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>88,661</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>











</TABLE>

</div>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:7.81%;text-align:center;'><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</font></p>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><FONT FACE="Times New Roman, Times, Serif" SIZE=2>- more -</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</font></p>
<!-- EEDocs PBStart-->
<HR noshade align="center" width="100%" size="2">
<p style='page-break-before:always'></p>
<!-- EEDocs PBEnd-->

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><FONT FACE="Times New Roman, Times, Serif" SIZE=2>- 7 -</font></p>

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

<p style=' margin-bottom:0pt; margin-top:2pt; text-indent:7.81%;text-align:center;'><B><FONT FACE="Times New Roman, Times, Serif" SIZE=2>ENERGY CONVERSION DEVICES, INC. AND SUBSIDIARIES</font></B></p>

<p style=' margin-bottom:0pt; margin-top:2pt; text-indent:7.81%;text-align:center;'><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><U><B><FONT FACE="Times New Roman, Times, Serif" SIZE=2>SEGMENT REVENUE AND OPERATING INCOME/(LOSS)</font></B></U></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:7.81%;text-align:center;'><b><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(In Thousands)</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:7.81%;text-align:center;'><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</font></p>


<div align=left>


<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=98%>
<TR VALIGN=Bottom>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD COLSPAN=5 ALIGN=CENTER STYLE="BORDER-BOTTOM: 1PX SOLID #000000"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Revenues</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD COLSPAN=5 ALIGN=CENTER STYLE="BORDER-BOTTOM: 1PX SOLID #000000"><FONT FACE="Times New Roman, Times, Serif" SIZE=2> Income (Loss) from Operations</FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>

<TR VALIGN=Bottom>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD COLSPAN=5 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Three Months Ended<BR>September 30,</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD COLSPAN=5 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Three Months Ended<BR>September 30,</FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>

<TR VALIGN=Bottom>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD COLSPAN=2 ALIGN=CENTER STYLE="BORDER-BOTTOM: 1PX SOLID #000000"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2006</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD COLSPAN=2 ALIGN=CENTER STYLE="BORDER-BOTTOM: 1PX SOLID #000000"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2005</FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD COLSPAN=2 ALIGN=CENTER STYLE="BORDER-BOTTOM: 1PX SOLID #000000"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2006</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD COLSPAN=2 ALIGN=CENTER STYLE="BORDER-BOTTOM: 1PX SOLID #000000"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2005</FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>

<TR VALIGN="Bottom" STYLE="padding-BOTTOM:1em;">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD COLSPAN=5 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(Unaudited)</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD COLSPAN=5 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(Unaudited)</FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>

<TR VALIGN=Bottom>
     <TD WIDTH=30% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>United Solar Ovonic</FONT></TD>
     <TD WIDTH=1% ALIGN=left><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
<TD WIDTH=10% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>23,860</FONT></TD>
        <TD WIDTH=2% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD WIDTH=1% ALIGN=left><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
<TD WIDTH=9% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>19,359</FONT></TD>
        <TD WIDTH=3% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD WIDTH=1% ALIGN=left><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
<TD WIDTH=9% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1,469</FONT></TD>
        <TD WIDTH=3% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD WIDTH=1% ALIGN=left><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
<TD WIDTH=9% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1,680</FONT></TD>
        <TD WIDTH=1% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN="Bottom" STYLE="padding-top:0.2em; padding-BOTTOM:0.1em;">
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Ovonic Battery<sup>(1)</sup></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>1,860</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>&nbsp;</FONT></TD>
<TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2,964</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>&nbsp;</FONT></TD>
<TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(1,521</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>&nbsp;</FONT></TD>
<TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(724</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD></TR>
<TR VALIGN="Bottom" STYLE="padding-top:0.2em; padding-BOTTOM:0.1em;">
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Energy Conversion Devices</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>19,861</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><sup>(2)</sup></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>11,115</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><sup>(2)</sup></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>(6,761</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>&nbsp;</FONT></TD>
<TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(7,592</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD></TR>
<TR VALIGN="Bottom" STYLE="padding-top:0.2em; padding-BOTTOM:0.1em;">
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Consolidating Entries</FONT></TD>
     <TD ALIGN=left 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>(18,399</FONT></TD>
        <TD ALIGN=LEFT VALIGN=TOP><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
     <TD ALIGN=left 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>(10,190</FONT></TD>
        <TD ALIGN=LEFT VALIGN=TOP><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
     <TD ALIGN=left 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>(531</FONT></TD>
        <TD ALIGN=LEFT VALIGN=TOP><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
     <TD ALIGN=left 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>(148</FONT></TD>
        <TD ALIGN=LEFT VALIGN=TOP><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD></TR>
<TR VALIGN="Bottom" STYLE="padding-top:0.2em; padding-BOTTOM:0.1em;">
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Consolidated</FONT></TD>
     <TD ALIGN=left STYLE="BORDER-BOTTOM: 3PX DOUBLE #000000"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
<TD ALIGN=RIGHT STYLE="BORDER-BOTTOM: 3PX DOUBLE #000000"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>27,182</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=left STYLE="BORDER-BOTTOM: 3PX DOUBLE #000000"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
<TD ALIGN=RIGHT STYLE="BORDER-BOTTOM: 3PX DOUBLE #000000"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>23,248</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=left STYLE="BORDER-BOTTOM: 3PX DOUBLE #000000"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
<TD ALIGN=RIGHT STYLE="BORDER-BOTTOM: 3PX DOUBLE #000000"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(7,344</FONT></TD>
        <TD ALIGN=LEFT VALIGN=TOP><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
     <TD ALIGN=left STYLE="BORDER-BOTTOM: 3PX DOUBLE #000000"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
<TD ALIGN=RIGHT STYLE="BORDER-BOTTOM: 3PX DOUBLE #000000"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(6,784</FONT></TD>
        <TD ALIGN=LEFT VALIGN=TOP><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD></TR>
</TABLE>


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<table border="0" cellspacing=0 cellpadding=0 width="90%" style='border-collapse:collapse'>
    <tr>
        <td width="2%" nowrap valign=top style='padding:2.0pt 0in 4.0pt 0in; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:2.0pt;margin-bottom: 4.0pt'><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</font></p> </td>
        <td width="4.5%" nowrap valign=top style='padding:2.0pt 0in 4.0pt 0in; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(1)</font></p> </td>
        <td width="90%" nowrap valign=top style='padding:2.0pt 0in 4.0pt 0in; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Excludes discontinued operations</font></p> </td> </tr></table>
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<div align=left>
<table border="0" cellspacing=0 cellpadding=0 width="90%" style='border-collapse:collapse'>
    <tr>
        <td width="2%" valign=top style='padding:0in 0in 8.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0in;margin-bottom: 8.0pt'><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</font></p> </td>
        <td width="4.5%" valign=top style='padding:0in 0in 8.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(2)</font></p> </td>
        <td  valign=top style='padding:0in 0in 8.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Principally the sale by ECD to United Solar Ovonic of the solar PV module machinery and equipment which is eliminated in consolidation.  The ECD revenues, excluding the consolidating entry, were $1,474,000 and $933,000 at September 30, 2006 and 2005, respectively.</font></p> </td> </tr></table>
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