<SUBMISSION>
<ACCESSION-NUMBER>0000032878-08-000122
<TYPE>10-Q
<PUBLIC-DOCUMENT-COUNT>8
<PERIOD>20080930
<FILING-DATE>20081110
<DATE-OF-FILING-DATE-CHANGE>20081110
<FILER>
<COMPANY-DATA>
<CONFORMED-NAME>ENERGY CONVERSION DEVICES INC
<CIK>0000032878
<ASSIGNED-SIC>3674
<IRS-NUMBER>381749884
<STATE-OF-INCORPORATION>DE
<FISCAL-YEAR-END>0630
</COMPANY-DATA>
<FILING-VALUES>
<FORM-TYPE>10-Q
<ACT>34
<FILE-NUMBER>001-08403
<FILM-NUMBER>081175662
</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>10-Q
<SEQUENCE>1
<FILENAME>form10q_sep08-1q09.htm
<DESCRIPTION>1Q09FINANCIALRESULTS, SEPTEMBER 30, 2008
<TEXT>
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<P style="MARGIN-TOP: 16pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center"><FONT face="Times New Roman, Times, Serif" size=2>UNITED STATES</FONT></P>

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

<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 3pt; TEXT-ALIGN: center"><FONT face="Times New Roman, Times, Serif" size=2>Washington, D.C. 20549</FONT></P>

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<P style="MARGIN-TOP: 3pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center"><FONT face="Times New Roman, Times, Serif" size=3>FORM 10-Q</FONT></P>

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

<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 6pt; TEXT-ALIGN: left"><FONT face="Times New Roman, Times, Serif" size=2>(Mark One)</FONT></P>

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<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 8pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: justify"><FONT face="Times New Roman, Times, Serif" size=2>QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED SEPTEMBER&nbsp;30, 2008.</FONT></P>
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<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 8pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: justify"><FONT face="Times New Roman, Times, Serif" size=2>TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM _____________ TO _____________.</FONT></P>
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<P style="MARGIN-TOP: 7pt; MARGIN-BOTTOM: 7pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0pt; TEXT-ALIGN: center"><FONT face="Times New Roman, Times, Serif" size=2>Commission File Number: </FONT><U><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;1-8403&nbsp;&nbsp;&nbsp;&nbsp;</FONT></U></P>
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<P style="MARGIN-TOP: 4pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: center"><FONT face="Times New Roman, Times, Serif" size=2>ENERGY CONVERSION DEVICES, INC.</FONT></P>
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<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 8pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: center"><FONT face="Times New Roman, Times, Serif" size=2>(Exact name of registrant as specified in its charter)</FONT></P>
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<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: center"><FONT face="Times New Roman, Times, Serif" size=2>DELAWARE</FONT></P>
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<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 35pt; TEXT-ALIGN: center"><FONT face="Times New Roman, Times, Serif" size=2>38-1749884</FONT></P>
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<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 8pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 35pt; TEXT-ALIGN: center"><FONT face="Times New Roman, Times, Serif" size=2>(I.R.S. Employer Identification No.)</FONT></P>
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<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><FONT face="Times New Roman, Times, Serif" size=2>2956 Waterview Drive, Rochester Hills, Michigan</FONT></P>
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<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: center"><FONT face="Times New Roman, Times, Serif" size=2>48309</FONT></P>
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<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 8pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><FONT face="Times New Roman, Times, Serif" size=2>(Address of principal executive offices)</FONT></P>
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<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 8pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: center"><FONT face="Times New Roman, Times, Serif" size=2>(Zip Code)</FONT></P>
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<P style="MARGIN-TOP: 1pt; MARGIN-BOTTOM: 1pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><FONT face="Times New Roman, Times, Serif" size=2>Registrant&#146;s telephone number, including area code</FONT></P>
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<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 1pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 20pt; TEXT-ALIGN: LEFT"><FONT face="Times New Roman, Times, Serif" size=2>(248) 293-0440</FONT></P>
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<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 16pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: center"><FONT face="Times New Roman, Times, Serif" size=2>Former name, former address and former fiscal year, if changed since last report.</FONT></P>
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<P style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 4pt; TEXT-INDENT: 7.69%; MARGIN-RIGHT: 3%; TEXT-ALIGN: justify"><FONT face="Times New Roman, Times, Serif" size=2>Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.</FONT>&nbsp;&nbsp;<FONT face=Wingdings size=4>&#254;</FONT> <FONT face="Times New Roman, Times, Serif" size=2>Yes&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face=Wingdings size=4>&#168;</FONT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;No</FONT></P>

<P style="MARGIN-TOP: 8pt; MARGIN-BOTTOM: 10pt; TEXT-INDENT: 7.69%; MARGIN-RIGHT: 3%; TEXT-ALIGN: justify"><FONT face="Times New Roman, Times, Serif" size=2>
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See definitions of &#147;large accelerated filer,&#148;  &#147;accelerated filer&#148; and &#147;smaller reporting company&#148; in Rule 12b-2 of the Exchange Act.</FONT><font size=2>&nbsp;</FONT></P>



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<P style="MARGIN-TOP: 3pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: center"><FONT face="Times New Roman, Times, Serif" size=2>Large&nbsp;accelerated&nbsp;filer</FONT></P>
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<P style="MARGIN-TOP: 3pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 5pt; TEXT-ALIGN: center"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></P>
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<P style="MARGIN-TOP: 3pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: center"><FONT face="Times New Roman, Times, Serif" size=2>Accelerated&nbsp;filer</FONT></P>
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<P style="MARGIN-TOP: 3pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: center"><FONT face="Times New Roman, Times, Serif" size=2>Non-accelerated&nbsp;filer&nbsp;&nbsp;&nbsp;<BR>(do&nbsp;not&nbsp;check&nbsp;if&nbsp;a&nbsp;smaller<BR>reporting&nbsp;company)</FONT></P>
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<P style="MARGIN-TOP: 3pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 5pt; TEXT-ALIGN: left"><FONT face=Wingdings size=4>&#168;&nbsp;&nbsp;</FONT></P>
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<P style="MARGIN-TOP: 3pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: center"><FONT face="Times New Roman, Times, Serif" size=2>Smaller&nbsp;reporting&nbsp;company</FONT></P>
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<P style="MARGIN-TOP: 3pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 5pt; TEXT-ALIGN: center"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></P>
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<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 5pt; TEXT-ALIGN: center"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT> </P>
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<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: center"><FONT face=Wingdings size=4>&#168;</FONT></P>
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<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 5pt; TEXT-ALIGN: center"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</font></P>
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<TD STYLE="padding-right:0in; padding-bottom:0in; padding-top:3pt;" VALIGN="TOP">
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<TD STYLE="padding-right:0in; padding-bottom:0in; padding-top:3pt;" VALIGN="TOP">
<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: center"><FONT face=Wingdings size=4>&#168;</FONT></P>
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<TD STYLE="padding-right:0in; padding-bottom:0in; padding-top:3pt;" VALIGN="TOP">
<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 5pt; TEXT-ALIGN: center"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></P>
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<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: justify"><FONT face="Times New Roman, Times, Serif" size=2></FONT>&nbsp;</P>

<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 7.69%; MARGIN-RIGHT: 5%; TEXT-ALIGN: justify"><FONT face="Times New Roman, Times, Serif" size=2>Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).</FONT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Yes&nbsp;&nbsp;</FONT><FONT face=Wingdings size=4>&#168;</FONT><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No&nbsp;&nbsp;<FONT face=Wingdings size=4>&#254;</FONT>&nbsp;&nbsp;</FONT></P>

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<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 7.69%; TEXT-ALIGN: justify"><FONT face="Times New Roman, Times, Serif" size=2>As of November 7, 2008, there were 45,702,875 shares of ECD&#146;s Common Stock outstanding.</FONT></P>

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<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center"><FONT face="Times New Roman, Times, Serif" size=2>Page 1 of&nbsp;34 Pages </FONT></P>

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<A name="toc-main">&nbsp;</A>
<p style=' margin-bottom:2pt; margin-top:0pt;text-align:center;'><B><font SIZE=2>ENERGY CONVERSION DEVICES, INC. AND SUBSIDIARIES</font></B></p>

<p style=' margin-bottom:2pt; margin-top:2pt;text-align:center;'><B><font SIZE=2>CONSOLIDATED FINANCIAL STATEMENTS</font></B></p>

<p style=' margin-bottom:16pt; margin-top:2pt;text-align:center;'><B><font SIZE=2>TABLE OF CONTENTS</font></B></p>

<p style=' margin-bottom:12pt; margin-top:12pt;text-align:left;'><font size=2>&nbsp;</font></p>

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<TD align=left colSpan=3><FONT face="Times New Roman, Times, Serif" size=2>PART I &#151; FINANCIAL INFORMATION</FONT></TD></TR>
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<TD STYLE="TEXT-INDENT: 20px" ALIGN="LEFT"><FONT face="Times New Roman, Times, Serif" size=2>Item 1.</FONT></TD>
<TD ALIGN="LEFT" ><FONT face="Times New Roman, Times, Serif" size=2>
<A href="#toc-a">Financial Statements</A></FONT></TD>
<TD ALIGN="RIGHT"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;1</FONT></TD></TR>
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<TD STYLE="TEXT-INDENT: 20px" ALIGN="LEFT"><FONT face="Times New Roman, Times, Serif" size=2>Item 2.</FONT></TD>
<TD ALIGN="LEFT" ><FONT face="Times New Roman, Times, Serif" size=2>
<A href="#toc-b">Management's Discussion and Analysis of Financial Condition and Results of Operations</A></FONT></TD>
<TD ALIGN="RIGHT"><FONT face="Times New Roman, Times, Serif" size=2>21</FONT></TD></TR>
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<TD STYLE="TEXT-INDENT: 20px" ALIGN="LEFT"><FONT face="Times New Roman, Times, Serif" size=2>Item 3.</FONT></TD>
<TD ALIGN="LEFT" ><FONT face="Times New Roman, Times, Serif" size=2>
<A href="#toc-c">Quantitative and Qualitative Disclosures About Market Risk</A></FONT></TD>
<TD ALIGN="RIGHT"><FONT face="Times New Roman, Times, Serif" size=2>31</FONT></TD></TR>
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<TD STYLE="TEXT-INDENT: 20px" ALIGN="LEFT"><FONT face="Times New Roman, Times, Serif" size=2>Item 4.</FONT></TD>
<TD ALIGN="LEFT" ><FONT face="Times New Roman, Times, Serif" size=2>
<A href="#toc-d">Controls and Procedures</A></FONT></TD>
<TD ALIGN="RIGHT"><FONT face="Times New Roman, Times, Serif" size=2>32</FONT></TD></TR>

<TR style="LAYOUT-GRID-LINE: 3em" vAlign=bottom>
<TD align=left colSpan=4><FONT face="Times New Roman, Times, Serif" size=2>PART II &#151; OTHER INFORMATION</FONT></TD></TR>
<TR style="PADDING-BOTTOM: 0.1em" vAlign=bottom>
<TD STYLE="TEXT-INDENT: 20px" ALIGN="LEFT"><FONT face="Times New Roman, Times, Serif" size=2>Item 1.</FONT></TD>
<TD ALIGN="LEFT" ><FONT face="Times New Roman, Times, Serif" size=2>
<A href="#toc-e">Legal Proceedings</A></FONT></TD>
<TD ALIGN="RIGHT"><FONT face="Times New Roman, Times, Serif" size=2>33</FONT></TD></TR>

<TR style="PADDING-BOTTOM: 0.1em" vAlign=bottom>
<TD STYLE="TEXT-INDENT: 20px" ALIGN="LEFT"><FONT face="Times New Roman, Times, Serif" size=2>Item 1A.</FONT></TD>
<TD ALIGN="LEFT" ><FONT face="Times New Roman, Times, Serif" size=2>
<A href="#toc-f">Risk Factors</A></FONT></TD>
<TD ALIGN="RIGHT"><FONT face="Times New Roman, Times, Serif" size=2>33</FONT></TD></TR>

<TR style="PADDING-BOTTOM: 0.1em" vAlign=bottom>
<TD STYLE="TEXT-INDENT: 20px" ALIGN="LEFT"><FONT face="Times New Roman, Times, Serif" size=2>Item 6.</FONT></TD>
<TD ALIGN="LEFT" ><FONT face="Times New Roman, Times, Serif" size=2>
<A href="#toc-g">Exhibits</A></FONT></TD>
<TD ALIGN="RIGHT"><FONT face="Times New Roman, Times, Serif" size=2>33</FONT></TD></TR>

<TR style="LAYOUT-GRID-LINE: 3em" vAlign=bottom>
<TD ALIGN="LEFT" COLSPAN="2"><FONT face="Times New Roman, Times, Serif" size=2>
<A href="#toc-h">SIGNATURES</A></FONT></TD>
<TD ALIGN="RIGHT"><FONT face="Times New Roman, Times, Serif" size=2>34</FONT></TD></TR>
</TABLE>
</DIV>

<P style="MARGIN-TOP: 8pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 19.69%; TEXT-ALIGN: left"><FONT face="Times New Roman, Times, Serif" size=2></FONT>&nbsp;</P>
<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"><FONT face="Times New Roman, Times, Serif" size=2></FONT>&nbsp;</P>
<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center"><FONT face="Times New Roman, Times, Serif" size=2>i</FONT></P>


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

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>
<PAGE>
<hr align="center" width="99%" noshade size="2">
<div style="PAGE-BREAK-AFTER: always">&nbsp;</div>
<!-- END-Pi -->
<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>
<a href="#toc-main"><font size="2"><font face="Times New Roman, Times, Serif" size="1"><u><i>Table of Contents</i></u></font></font></a>
<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>
<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"><FONT face="Times New Roman, Times, Serif" size=2></FONT>&nbsp;</P>
<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><u><font size=2>PART I &#150; FINANCIAL INFORMATION</font></u></p>
<A name="toc-a">&nbsp;</A>
<div align=left>
<table border="0" cellspacing=0 cellpadding=0 width="92%" style='border-collapse:collapse'>
    <tr >
        <td width="10%" nowrap valign=top style='padding:8.0pt 0in 8.0pt 0in; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><u><b><font size=2>Item 1</font></b></u><b><font size=2>.</font></b></p> </td>
        <td width="90%" nowrap valign=top style='padding:8.0pt 0in 8.0pt 0in; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><u><b><font size=2>Financial Statements</font></b></u></p> </td> </tr></table>
</div>


<p style=' margin-bottom:8pt; margin-top:0pt;text-align:center;'><font size=2>ENERGY CONVERSION DEVICES, INC. and SUBSIDIARIES</font></p>

<p style=' margin-bottom:6pt; margin-top:0pt;text-align:center;'><U><font SIZE=2>CONSOLIDATED STATEMENTS OF OPERATIONS</font></U></p>

<p style=' margin-bottom:6pt; margin-top:0pt;text-align:center;'><font size=2>(In thousands, except per share data)</font></p>

<p style=' margin-bottom:18pt; margin-top:0pt;text-align:center;'><u><font size=2>(Unaudited)</font></u></p>

<div align=left>

<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="98%" STYLE="margin-left:0pt;border-collapse:collapse">
    <tr style='page-break-inside:avoid'>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td colspan="5" valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>Three&nbsp;Months&nbsp;Ended</font> <BR><font size=2>September&nbsp;30,</font></p> </td>
        <TD VALIGN="BOTTOM" ALIGN="LEFT">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td> </tr>

    <tr style='page-break-inside:avoid'>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td colspan="2" valign=bottom style=' border-bottom:solid black 1.0pt;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>2008</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <td colspan="2" valign=bottom style=' border-bottom:solid black 1.0pt; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>2007</font></p> </td>
        <TD VALIGN="BOTTOM" ALIGN="LEFT">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <TD WIDTH="70%" VALIGN="BOTTOM" STYLE="background: #EAFFFF">
            <p style='margin-left:.25in;text-indent:-.25in;text-align:left;margin-top:2pt;margin-bottom:0pt'><font SIZE=2>REVENUES </font></p> </td>
        <TD WIDTH="1%" VALIGN="BOTTOM" STYLE="background: #EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD WIDTH="9%" VALIGN="BOTTOM" STYLE="border-top:solid black 1.0pt; background: #EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD WIDTH="7%" VALIGN="BOTTOM" STYLE="background: #EAFFFF ;">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD WIDTH="1%" VALIGN="BOTTOM" STYLE="background: #EAFFFF ;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD WIDTH="9%" VALIGN="BOTTOM" STYLE="background: #EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD WIDTH="1%" VALIGN="BOTTOM" STYLE="background: #EAFFFF ;" ALIGN="LEFT">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:.35in;text-indent:-.15in;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>Product sales</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>$</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>90,801</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>$</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>42,467</font></p> </td>
        <TD VALIGN="BOTTOM" ALIGN="LEFT">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <TD VALIGN="BOTTOM" STYLE="background: #EAFFFF">
            <p style='margin-left:.35in;text-indent:-.15in;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>Royalties</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background: #EAFFFF ;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background: #EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>1,344</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background: #EAFFFF ;">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background: #EAFFFF ;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background: #EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>1,015</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background: #EAFFFF ;" ALIGN="LEFT">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:.35in;text-indent:-.15in;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>Revenues from product development agreements</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>3,271</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>2,877</font></p> </td>
        <TD VALIGN="BOTTOM" ALIGN="LEFT">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <TD VALIGN="BOTTOM" STYLE="background: #EAFFFF">
            <p style='margin-left:.35in;text-indent:-.15in;text-align:left;margin-top:1.0pt;margin-bottom: 0in'><font size=2>Other revenues</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: solid black 1.0pt; background: #EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: solid black 1.0pt; background: #EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>349</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background: #EAFFFF ;">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: solid black 1.0pt; background: #EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: solid black 1.0pt; background: #EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>683</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background: #EAFFFF ;" ALIGN="LEFT">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:.25in;text-indent:-.25in;text-align:left;margin-top:2pt;margin-bottom:0pt'><font SIZE=2>TOTAL REVENUES</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>95,765</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>47,042</font></p> </td>
        <TD VALIGN="BOTTOM" ALIGN="LEFT">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <TD VALIGN="BOTTOM" STYLE="background: #EAFFFF">
            <p style='margin-left:.25in;text-indent:-.25in;text-align:left;margin-top:2pt;margin-bottom:0pt'><font SIZE=2>EXPENSES </font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background: #EAFFFF ;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background: #EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background: #EAFFFF ;">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background: #EAFFFF ;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background: #EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background: #EAFFFF ;" ALIGN="LEFT">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:.35in;text-indent:-.15in;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>Cost of product sales</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>60,967</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>35,069</font></p> </td>
        <TD VALIGN="BOTTOM" ALIGN="LEFT">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <TD VALIGN="BOTTOM" STYLE="background: #EAFFFF">
            <p style='margin-left:.35in;text-indent:-.15in;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>Cost of revenues from product development agreements</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background: #EAFFFF ;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background: #EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>2,181</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background: #EAFFFF ;">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background: #EAFFFF ;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background: #EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>1,709</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background: #EAFFFF ;" ALIGN="LEFT">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:.35in;text-indent:-.15in;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>Product development and research</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>2,190</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>3,462</font></p> </td>
        <TD VALIGN="BOTTOM" ALIGN="LEFT">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <TD VALIGN="BOTTOM" STYLE="background: #EAFFFF">
            <p style='margin-left:.35in;text-indent:-.15in;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>Preproduction costs</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background: #EAFFFF ;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background: #EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>1,977</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background: #EAFFFF ;">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background: #EAFFFF ;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background: #EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>2,545</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background: #EAFFFF ;" ALIGN="LEFT">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:.35in;text-indent:-.15in;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>Selling, general and administrative</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>14,434</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>11,695</font></p> </td>
        <TD VALIGN="BOTTOM" ALIGN="LEFT">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <TD VALIGN="BOTTOM" STYLE="background: #EAFFFF">
            <p style='margin-left:.35in;text-indent:-.15in;text-align:left;margin-top:1.0pt;margin-bottom: 0in'><font size=2>Restructuring charges</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: solid black 1.0pt; background: #EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: solid black 1.0pt; background: #EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>244</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background: #EAFFFF ;">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: solid black 1.0pt; background: #EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: solid black 1.0pt; background: #EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>2,515</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background: #EAFFFF ;" ALIGN="LEFT">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:.25in;text-indent:-.25in;text-align:left;margin-top:1.0pt;margin-bottom: 0in'><font SIZE=2>TOTAL EXPENSES</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: solid black 1.0pt;background: white">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: solid black 1.0pt;background: white">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>81,993</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: solid black 1.0pt;background: white">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: solid black 1.0pt;background: white">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>56,995</font></p> </td>
        <TD VALIGN="BOTTOM" ALIGN="LEFT">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <TD VALIGN="BOTTOM" STYLE="background: #EAFFFF">
            <p style='margin-left:.25in;text-indent:-.25in;text-align:left;margin-top:2pt;margin-bottom:0pt'><font SIZE=2>INCOME (LOSS) FROM OPERATIONS</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background: #EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background: #EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>13,772</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background: #EAFFFF ;">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background: #EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background: #EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>(9,953</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background: #EAFFFF ;" ALIGN="LEFT">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>)</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:.25in;text-indent:-.25in;text-align:left;margin-top:2pt;margin-bottom:0pt'><font SIZE=2>OTHER INCOME (EXPENSE)</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" ALIGN="LEFT">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <TD VALIGN="BOTTOM" STYLE="background: #EAFFFF">
            <p style='margin-left:.35in;text-indent:-.15in;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>Interest income</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background: #EAFFFF ;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background: #EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>2,604</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background: #EAFFFF ;">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background: #EAFFFF ;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background: #EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>2,452</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background: #EAFFFF ;" ALIGN="LEFT">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:.35in;text-indent:-.15in;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>Interest expense</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>(2,732</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>)</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt'><font size=2>&#151;</font></p> </td>
        <TD VALIGN="BOTTOM" ALIGN="LEFT">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <TD VALIGN="BOTTOM" STYLE="background: #EAFFFF">
            <p style='margin-left:.35in;text-indent:-.15in;text-align:left;margin-top:1.0pt;margin-bottom: 0in'><font size=2>Other nonoperating expense</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: solid black 1.0pt; background: #EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: solid black 1.0pt; background: #EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>(926</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background: #EAFFFF ">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>)</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: solid black 1.0pt; background: #EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: solid black 1.0pt; background: #EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>(60</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background: #EAFFFF" ALIGN="LEFT">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>)</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:.25in;text-indent:-.25in;text-align:left;margin-top:1.0pt;margin-bottom: 0in'><font SIZE=2>TOTAL OTHER (EXPENSE) INCOME </font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: solid black 1.0pt;background: white">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: solid black 1.0pt;background: white">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>(1,054</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: solid white 1.0pt;">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>)</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: solid black 1.0pt;background: white">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: solid black 1.0pt;background: white">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>2,392</font></p> </td>
        <TD VALIGN="BOTTOM" ALIGN="LEFT">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <TD VALIGN="BOTTOM" STYLE="background: #EAFFFF">
            <p style='margin-left:19.65pt;text-indent:-.25in;text-align:left;margin-top:2pt;margin-bottom:0pt'><font SIZE=2>NET INCOME (LOSS) BEFORE INCOME TAXES</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background: #EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background: #EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>12,718</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background: #EAFFFF">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background: #EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background: #EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>(7,561</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background: #EAFFFF ;" ALIGN="LEFT">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>)</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:.35in;text-indent:-.15in;text-align:left;margin-top:1.0pt;margin-bottom: 0in'><font SIZE=2>INCOME TAXES</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: solid black 1.0pt;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: solid black 1.0pt;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>57</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: solid black 1.0pt;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: solid black 1.0pt;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>6</font></p> </td>
        <TD VALIGN="BOTTOM" ALIGN="LEFT">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <TD VALIGN="BOTTOM" STYLE="background: #EAFFFF">
            <p style='margin-left:.25in;text-indent:-.25in;text-align:left;margin-top:1.5pt;margin-bottom: 0in'><font SIZE=2>NET INCOME (LOSS) </font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: double black 2.25pt;background: #EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>$</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: double black 2.25pt;background: #EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>12,661</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background: #EAFFFF ;">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: double black 2.25pt;background: #EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>$</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: double black 2.25pt;background: #EAFFFF">
            <p style='margin-left:0pt;text-indent:2.25pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>(7,567</font></p> </td>
        <TD VALIGN="middle" STYLE="background: #EAFFFF" ALIGN="LEFT">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0pt'><font size=2>)</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:.25in;text-indent:-.25in;text-align:left;margin-top:6pt;margin-bottom: 0in'><font size=2>Basic net income (loss) per share</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: double black 2.25pt;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:6pt;margin-bottom:0pt'><font size=2>$</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: double black 2.25pt;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:6pt;margin-bottom:0pt'><font size=2>.30</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:6pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: double black 2.25pt;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:6pt;margin-bottom:0pt'><font size=2>$</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: double black 2.25pt;">
            <p style='margin-left:0pt;text-indent:2.25pt;text-align:right;margin-top:6pt;margin-bottom:0pt'><font size=2>(.19</font></p> </td>
        <TD VALIGN="middle" ALIGN="LEFT">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:6pt;margin-bottom:0.5pt'><font size=2>)</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <TD VALIGN="BOTTOM" STYLE="background: #EAFFFF">
            <p style='margin-left:.25in;text-indent:-.25in;text-align:left;margin-top:6pt;margin-bottom: 0in'><font size=2>Diluted net income (loss) per share</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: double black 2.25pt; background: #EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:6pt;margin-bottom:0pt'><font size=2>$</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: double black 2.25pt; background: #EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:6pt;margin-bottom:0pt'><font size=2>.29</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background: #EAFFFF ;">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:6pt;margin-bottom:0.5pt'><font size=2></font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: double black 2.25pt; background: #EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:6pt;margin-bottom:0pt'><font size=2>$</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: double black 2.25pt; background: #EAFFFF">
            <p style='margin-left:0pt;text-indent:2.25pt;text-align:right;margin-top:6pt;margin-bottom:0pt'><font size=2>(.19</font></p> </td>
        <TD VALIGN="middle" STYLE="background: #EAFFFF" ALIGN="LEFT">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:6pt;margin-bottom:0.5pt'><font size=2>)</font></p> </td> </tr></table>
</div>

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

<p style=' margin-bottom:6pt; margin-top:0pt;text-align:left;'><font size=2>See notes to consolidated financial statements.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>1</font></p>
<!-- EEDocs PBStart-->
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<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>
<PAGE>
<hr align="center" width="99%" noshade size="2">
<div style="PAGE-BREAK-AFTER: always">&nbsp;</div>
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<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>
<a href="#toc-main"><font size="2"><font face="Times New Roman, Times, Serif" size="1"><u><i>Table of Contents</i></u></font></font></a>
<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>
<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"><FONT face="Times New Roman, Times, Serif" size=2></FONT>&nbsp;</P>
<p style=' margin-bottom:8pt; margin-top:0pt;text-align:center;'><font size=2>ENERGY CONVERSION DEVICES, INC. and SUBSIDIARIES</font></p>

<p style=' margin-bottom:6pt; margin-top:0pt;text-align:center;'><U><font SIZE=2>CONSOLIDATED BALANCE SHEETS</font></U></p>

<p style=' margin-bottom:6pt; margin-top:0pt;text-align:center;'><font size=2> (In thousands)</font></p>

<p style=' margin-bottom:18pt; margin-top:0pt;text-align:center;'><U><font SIZE=2>ASSETS</font></U></p>

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


<div align=left>

<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="98%" STYLE="margin-left:2.9pt;border-collapse:collapse">
    <tr style='page-break-inside:avoid'>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td colspan="2" valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt'><font size=2>September&nbsp;30,</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td colspan="2" valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt'><font size=2>June 30,</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td colspan="2" valign=bottom style=' border-bottom:solid black 1.0pt; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>2008</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <td colspan="2" valign=bottom style=' border-bottom:solid black 1.0pt; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>2008</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td colspan="2" valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt'><font size=2>(Unaudited)</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td colspan="2" valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td> </tr>

    <tr style='page-break-inside:avoid'>
        <TD WIDTH="67%" VALIGN="BOTTOM" STYLE="background:#EFEFEF">
            <p style='margin-left:.25in;text-indent:-.25in;text-align:left;margin-top:2pt;margin-bottom:0pt'><font SIZE=2>CURRENT ASSETS</font></p> </td>
        <TD WIDTH="1%" VALIGN="BOTTOM" STYLE="background:#EFEFEF;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD WIDTH="11.3%" VALIGN="BOTTOM" STYLE="background:#EFEFEF;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD WIDTH="7%" VALIGN="BOTTOM" STYLE="background:#EFEFEF;">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD WIDTH="1%" VALIGN="BOTTOM" STYLE="background:#EFEFEF;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD WIDTH="10.7%" VALIGN="BOTTOM" STYLE="background:#EFEFEF;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD WIDTH="1%" VALIGN="BOTTOM" STYLE="background:#EFEFEF;">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td> </tr>

    <tr style='page-break-inside:avoid'>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:.35in;text-indent:-.15in;text-align:left;margin-top:2pt;margin-bottom:0pt;line-height:102.6%'><font size=2>Cash, including cash equivalents of $447,715 at </font><br> <font size=2>September&nbsp;30, 2008 and $468,361 at June&nbsp;30, 2008</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;line-height:102.6%'><font size=2>$</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;line-height:102.6%'><font size=2>467,018</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt;line-height:102.6%'><font size=2>$</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;line-height:102.6%'><font size=2>484,492</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <TD VALIGN="BOTTOM" STYLE="background:#EFEFEF">
            <p style='margin-left:.35in;text-indent:-.15in;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>Short-term investments</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EFEFEF;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EFEFEF;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>11,201</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EFEFEF;">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EFEFEF;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EFEFEF;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>14,989</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EFEFEF;">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:.35in;text-indent:-.15in;text-align:left;margin-top:2pt;margin-bottom:0pt;line-height:98.28%'><font size=2>Accounts receivable (net)</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;line-height:98.28%'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;line-height:98.28%'><font size=2>63,165</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;line-height:98.28%'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;line-height:98.28%'><font size=2>53,525</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <TD VALIGN="BOTTOM" STYLE="background:#EFEFEF">
            <p style='margin-left:.35in;text-indent:-.15in;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>Inventories </font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EFEFEF;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EFEFEF;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>34,342</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EFEFEF;">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EFEFEF;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EFEFEF;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>31,337</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EFEFEF;">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:.35in;text-indent:-.15in;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>Assets held for sale</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>1,532</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>1,539</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <TD VALIGN="BOTTOM" STYLE="background:#EFEFEF">
            <p style='margin-left:.35in;text-indent:-.15in;text-align:left;margin-top:1.0pt;margin-bottom: 0in'><font size=2>Other</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: solid black 1.0pt; background:#EFEFEF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: solid black 1.0pt; background:#EFEFEF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>6,803</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EFEFEF;">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: solid black 1.0pt; background:#EFEFEF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: solid black 1.0pt; background:#EFEFEF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>4,130</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EFEFEF;">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:.25in;text-indent:-.25in;text-align:left;margin-top:2pt;margin-bottom:0pt'><font SIZE=2>TOTAL CURRENT ASSETS</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>584,061</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>590,012</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <TD VALIGN="BOTTOM" STYLE="background:#EFEFEF">
            <p style='margin-left:.25in;text-indent:-.25in;text-align:left;margin-top:4.0pt;margin-bottom: 0in'><font SIZE=2>PROPERTY, PLANT AND EQUIPMENT</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EFEFEF;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:4.0pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EFEFEF;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:4.0pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EFEFEF;">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:4.0pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EFEFEF;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:4.0pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EFEFEF;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:4.0pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EFEFEF;">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:4.0pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:.35in;text-indent:-.15in;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>Buildings and improvements</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>85,377</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>58,913</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <TD VALIGN="BOTTOM" STYLE="background:#EFEFEF">
            <p style='margin-left:.35in;text-indent:-.15in;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>Machinery and other equipment</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EFEFEF;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EFEFEF;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>287,482</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EFEFEF;">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EFEFEF;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EFEFEF;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>253,424</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EFEFEF;">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:.35in;text-indent:-.15in;text-align:left;margin-top:1.0pt;margin-bottom: 0in'><font size=2>Assets under capitalized leases</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: solid black 1.0pt;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: solid black 1.0pt;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>26,814</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: solid black 1.0pt;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: solid black 1.0pt;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>26,822</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <TD VALIGN="BOTTOM" STYLE="background:#EFEFEF">
            <p style='margin-left:32.2pt;text-indent:-.25in;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EFEFEF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EFEFEF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>399,673</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EFEFEF;">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EFEFEF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EFEFEF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>339,159</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EFEFEF;">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:.35in;text-indent:-.15in;text-align:left;margin-top:1.0pt;margin-bottom: 0in'><font size=2>Less accumulated depreciation and amortization</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: solid black 1.0pt;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: solid black 1.0pt;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>(65,812</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: solid white 1.0pt;">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>)</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: solid black 1.0pt;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: solid black 1.0pt;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>(60,877</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: solid white 1.0pt;">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>)</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <TD VALIGN="BOTTOM" STYLE="background:#EFEFEF">
            <p style='margin-left:.25in;text-indent:-.25in;text-align:left;margin-top:2pt;margin-bottom:0pt'><font SIZE=2>NET DEPRECIABLE ASSETS</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EFEFEF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EFEFEF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>333,861</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EFEFEF">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EFEFEF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EFEFEF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>278,282</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EFEFEF">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:.35in;text-indent:-.15in;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>Land</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>1,157</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>1,157</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <TD VALIGN="BOTTOM" STYLE="background:#EFEFEF">
            <p style='margin-left:.35in;text-indent:-.15in;text-align:left;margin-top:1.0pt;margin-bottom: 0in'><font size=2>Construction in progress</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: solid black 1.0pt; background:#EFEFEF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: solid black 1.0pt; background:#EFEFEF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>108,372</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EFEFEF;">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: solid black 1.0pt; background:#EFEFEF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: solid black 1.0pt; background:#EFEFEF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>124,680</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EFEFEF;">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:.25in;text-indent:-.25in;text-align:left;margin-top:2pt;margin-bottom:0pt'><font SIZE=2>TOTAL PROPERTY, PLANT AND EQUIPMENT</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>443,390</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>404,119</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <TD VALIGN="BOTTOM" STYLE="background:#EFEFEF">
            <p style='margin-left:.25in;text-indent:-.25in;text-align:left;margin-top:4.0pt;margin-bottom: 0in'><font SIZE=2>LONG-TERM INVESTMENTS</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EFEFEF;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:4.0pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EFEFEF;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:4.0pt;margin-bottom:0pt'><font size=2>31,451</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EFEFEF;">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:4.0pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EFEFEF;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:4.0pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EFEFEF;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:4.0pt;margin-bottom:0pt'><font size=2>32,277</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EFEFEF;">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:4.0pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:.25in;text-indent:-.25in;text-align:left;margin-top:1.0pt;margin-bottom: 0in'><font SIZE=2>OTHER ASSETS</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: solid black 1.0pt;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:4.0pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: solid black 1.0pt;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:4.0pt;margin-bottom:0pt'><font size=2>15,917</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: solid black 1.0pt;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:4.0pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: solid black 1.0pt;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:4.0pt;margin-bottom:0pt'><font size=2>15,559</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <TD VALIGN="BOTTOM" STYLE="background:#EFEFEF">
            <p style='margin-left:52.55pt;text-indent:-.25in;text-align:left;margin-top:1.5pt;margin-bottom: 0in'><font SIZE=2>TOTAL ASSETS</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: double black 2.25pt;background: #EFEFEF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:4.0pt;margin-bottom:0pt'><font size=2>$</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: double black 2.25pt;background: #EFEFEF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:4.0pt;margin-bottom:0pt'><font size=2>1,074,819</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EFEFEF;">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: double black 2.25pt;background: #EFEFEF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:4.0pt;margin-bottom:0pt'><font size=2>$</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: double black 2.25pt;background: #EFEFEF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:4.0pt;margin-bottom:0pt'><font size=2>1,041,967</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EFEFEF;">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td> </tr></table>
</div>


<p style=' margin-bottom:0pt; margin-top:30pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:18pt; margin-top:30pt;text-align:left;'><font size=2>See notes to consolidated financial statements.</font></p>


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

<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"><FONT face="Times New Roman, Times, Serif" size=2></FONT>&nbsp;</P>
<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>
<PAGE>
<hr align="center" width="99%" noshade size="2">
<div style="PAGE-BREAK-AFTER: always">&nbsp;</div>
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<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>
<a href="#toc-main"><font size="2"><font face="Times New Roman, Times, Serif" size="1"><u><i>Table of Contents</i></u></font></font></a>
<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>
<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"><FONT face="Times New Roman, Times, Serif" size=2></FONT>&nbsp;</P>

<p style=' margin-bottom:8pt; margin-top:0pt;text-align:center;'><font size=2>ENERGY CONVERSION DEVICES, INC. and SUBSIDIARIES</font></p>

<p style=' margin-bottom:6pt; margin-top:0pt;text-align:center;'><U><font SIZE=2>CONSOLIDATED BALANCE SHEETS</font></U></p>

<p style=' margin-bottom:6pt; margin-top:0pt;text-align:center;'><font size=2>(In thousands, except share data)</font></p>

<p style=' margin-bottom:18pt; margin-top:0pt;text-align:center;'><u><font size=2>LIABILITIES AND STOCKHOLDERS&#146; EQUITY</font></u></p>

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


<div align=left>

<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="98%" STYLE="margin-left:2.9pt;border-collapse:collapse">
    <tr style='page-break-inside:avoid'>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td colspan="2" valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt'><font size=2>September&nbsp;30,</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td colspan="2" valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt'><font size=2>June 30,</font></p> </td>
        <td width="1%" valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td colspan="2" valign=bottom style=' border-bottom:solid black 1.0pt; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>2008</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <td colspan="2" valign=bottom style=' border-bottom:solid black 1.0pt; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>2008</font></p> </td>
        <td width="1%" valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td colspan="2" valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt'><font size=2>(Unaudited)</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td colspan="2" valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td width="1%" valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <TD WIDTH="67.5%" VALIGN="BOTTOM" STYLE="background: #EAFFFF ;">
            <p style='margin-left:.25in;text-indent:-.25in;text-align:left;margin-top:2pt;margin-bottom:0pt'><font SIZE=2>CURRENT LIABILITIES</font></p> </td>
        <TD WIDTH="1%" VALIGN="BOTTOM" STYLE="background: #EAFFFF ;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD WIDTH="11.3%" VALIGN="BOTTOM" STYLE="background: #EAFFFF ;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD WIDTH="7%" VALIGN="BOTTOM" STYLE="background: #EAFFFF ;">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD WIDTH="1%" VALIGN="BOTTOM" STYLE="background: #EAFFFF ;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD WIDTH="10.7%" VALIGN="BOTTOM" STYLE="background: #EAFFFF ;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD WIDTH="1%" VALIGN="BOTTOM" STYLE="background: #EAFFFF ;">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:.35in;text-indent:-.15in;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>Accounts payable and accrued expenses</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>$</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>58,175</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>$</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>39,017</font></p> </td>
        <td width="1%" valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <TD VALIGN="BOTTOM" STYLE="background: #EAFFFF ;">
            <p style='margin-left:.35in;text-indent:-.15in;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>Salaries, wages and amounts withheld from employees</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background: #EAFFFF ;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background: #EAFFFF ;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>4,030</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background: #EAFFFF ;">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background: #EAFFFF ;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background: #EAFFFF ;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>3,160</font></p> </td>
        <td width="1%" valign=bottom style='background: #EAFFFF ; '>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:.35in;text-indent:-.15in;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>Amounts due under incentive plans</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>590</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>6,747</font></p> </td>
        <td width="1%" valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <TD VALIGN="BOTTOM" STYLE="background: #EAFFFF ;">
            <p style='margin-left:.35in;text-indent:-.15in;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>Restructuring reserve</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background: #EAFFFF ;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background: #EAFFFF ;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>517</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background: #EAFFFF ;">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background: #EAFFFF ;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background: #EAFFFF ;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>831</font></p> </td>
        <td width="1%" valign=bottom style='background: #EAFFFF ; '>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:.35in;text-indent:-.15in;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>Deferred revenues </font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>3,124</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>309</font></p> </td>
        <td width="1%" valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <TD VALIGN="BOTTOM" STYLE="background: #EAFFFF ;">
            <p style='margin-left:.35in;text-indent:-.15in;text-align:left;margin-top:1.0pt;margin-bottom: 0in'><font size=2>Other liabilities </font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: solid black 1.0pt; background: #EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: solid black 1.0pt; background: #EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>2,019</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background: #EAFFFF ;">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: solid black 1.0pt; background: #EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: solid black 1.0pt; background: #EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>2,039</font></p> </td>
        <td width="1%" valign=bottom style='background: #EAFFFF ; '>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:47.2pt;text-indent:-.25in;text-align:left;margin-top:2pt;margin-bottom:0pt'><font SIZE=2>TOTAL CURRENT LIABILITIES</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>68,455</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>52,103</font></p> </td>
        <td width="1%" valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <TD VALIGN="BOTTOM" STYLE="background: #EAFFFF ;">
            <p style='margin-left:.25in;text-indent:-.25in;text-align:left;margin-top:4.0pt;margin-bottom: 0in'><font SIZE=2>CONVERTIBLE SENIOR NOTES</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background: #EAFFFF ;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:4.0pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background: #EAFFFF ;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:4.0pt;margin-bottom:0pt'><font size=2>316,250</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background: #EAFFFF ;">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:4.0pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background: #EAFFFF ;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:4.0pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background: #EAFFFF ;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:4.0pt;margin-bottom:0pt'><font size=2>316,250</font></p> </td>
        <td width="1%" valign=bottom style='background: #EAFFFF ; '>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:4.0pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:.25in;text-indent:-.25in;text-align:left;margin-top:4.0pt;margin-bottom: 0in'><font SIZE=2>LONG-TERM RESTRUCTURING RESERVE</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:4.0pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:4.0pt;margin-bottom:0pt'><font size=2>398</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:4.0pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:4.0pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:4.0pt;margin-bottom:0pt'><font size=2>414</font></p> </td>
        <td width="1%" valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:4.0pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <TD VALIGN="BOTTOM" STYLE="background: #EAFFFF ;">
            <p style='margin-left:.25in;text-indent:-.25in;text-align:left;margin-top:1.0pt;margin-bottom: 0in'><font SIZE=2>OTHER LONG-TERM LIABILITIES</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: solid black 1.0pt; background: #EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:4.0pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: solid black 1.0pt; background: #EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:4.0pt;margin-bottom:0pt'><font size=2>33,748</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background: #EAFFFF ;">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: solid black 1.0pt; background: #EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:4.0pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: solid black 1.0pt; background: #EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:4.0pt;margin-bottom:0pt'><font size=2>31,288</font></p> </td>
        <td width="1%" valign=bottom style='background: #EAFFFF ; '>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:47.2pt;text-indent:-.25in;text-align:left;margin-top:1.0pt;margin-bottom: 0in'><font SIZE=2>TOTAL LIABILITIES</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: solid black 1.0pt;background: white">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: solid black 1.0pt;background: white">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>418,851</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: solid black 1.0pt;background: white">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: solid black 1.0pt;background: white">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>400,055</font></p> </td>
        <td width="1%" valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <TD VALIGN="BOTTOM" STYLE="background: #EAFFFF ;">
            <p style='margin-left:.25in;text-indent:-.25in;text-align:left;margin-top:4.0pt;margin-bottom: 0in'><font size=2>COMMITMENTS AND CONTINGENCIES (NOTE&nbsp;G)</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background: #EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:4.0pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background: #EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:4.0pt;margin-bottom:0pt'><font size=2>&#151;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background: #EAFFFF ;">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:4.0pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background: #EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:4.0pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background: #EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:4.0pt;margin-bottom:0pt'><font size=2>&#151;</font></p> </td>
        <td width="1%" valign=bottom style='background: #EAFFFF ; '>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:4.0pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:.25in;text-indent:-.25in;text-align:left;margin-top:4.0pt;margin-bottom: 0in'><font size=2>STOCKHOLDERS&#146; EQUITY</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:4.0pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:4.0pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:4.0pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:4.0pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:4.0pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td width="1%" valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:4.0pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <TD VALIGN="BOTTOM" STYLE="background: #EAFFFF ;">
            <p style='margin-left:.35in;text-indent:-.15in;text-align:left;margin-top:2.0pt;margin-bottom: 6.0pt'><font size=2>Common Stock, par value $0.01 per share:</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background: #EAFFFF ;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:6.0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background: #EAFFFF ;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:6.0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background: #EAFFFF ;">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:6.0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background: #EAFFFF ;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:6.0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background: #EAFFFF ;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:6.0pt'><font size=2>&nbsp;</font></p> </td>
        <td width="1%" valign=bottom style='background: #EAFFFF ; '>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:6.0pt'><font size=2>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:.35in;text-indent:-.15in;text-align:left;margin-top:2pt;margin-bottom:0pt;line-height:102.6%'><font size=2>Authorized &#150; 100,000,000 shares at September&nbsp;30, 2008 and </font><br> <font size=2>at June&nbsp;30, 2008</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;line-height:102.6%'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;line-height:102.6%'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;line-height:102.6%'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;line-height:102.6%'><font size=2>&nbsp;</font></p> </td>
        <td width="1%" valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <TD VALIGN="BOTTOM" STYLE="background: #EAFFFF ;">
            <p style='margin-left:.35in;text-indent:-.15in;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>Issued and outstanding &#150; 45,681,120 shares at September&nbsp;30, </font><br> <font size=2>2008 and 45,575,554 shares at June&nbsp;30, 2008</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background: #EAFFFF ;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background: #EAFFFF ;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>457</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background: #EAFFFF ;">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background: #EAFFFF ;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background: #EAFFFF ;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>456</font></p> </td>
        <td width="1%" valign=bottom style='background: #EAFFFF ; '>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:.35in;text-indent:-.15in;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>Additional paid-in capital</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>972,007</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>969,421</font></p> </td>
        <td width="1%" valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <TD VALIGN="BOTTOM" STYLE="background: #EAFFFF ;">
            <p style='margin-left:.35in;text-indent:-.15in;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>Treasury stock</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background: #EAFFFF ;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background: #EAFFFF ;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>(700</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background: #EAFFFF ;">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>)</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background: #EAFFFF ;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background: #EAFFFF ;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>(700</font></p> </td>
        <td width="1%" valign=bottom style='background: #EAFFFF ; '>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>)</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:.35in;text-indent:-.15in;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>Accumulated deficit</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>(312,504</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>)</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>(325,165</font></p> </td>
        <td width="1%" valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>)</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <TD VALIGN="BOTTOM" STYLE="background: #EAFFFF ;">
            <p style='margin-left:.35in;text-indent:-.15in;text-align:left;margin-top:1.0pt;margin-bottom: 0in'><font size=2>Accumulated other comprehensive loss</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: solid black 1.0pt; background: #EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: solid black 1.0pt; background: #EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>(3,292</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background: #EAFFFF">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>)</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: solid black 1.0pt; background: #EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: solid black 1.0pt; background: #EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>(2,100</font></p> </td>
        <td width="1%" valign=bottom style='background: #EAFFFF'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>)</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:47.2pt;text-indent:-.25in;text-align:left;margin-top:1.0pt;margin-bottom: 0in'><font size=2>TOTAL STOCKHOLDERS&#146; EQUITY</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: solid black 1.0pt;background: white">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: solid black 1.0pt;background: white">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>655,968</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: solid black 1.0pt;background: white">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: solid black 1.0pt;background: white">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>641,912</font></p> </td>
        <td width="1%" valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <TD VALIGN="BOTTOM" STYLE="background: #EAFFFF ;">
            <p style='margin-left:47.2pt;text-indent:-.25in;text-align:left;margin-top:1.5pt;margin-bottom: 0in'><font size=2>TOTAL LIABILITIES AND STOCKHOLDERS&#146; EQUITY</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: double black 2.25pt;background: #EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:4.0pt;margin-bottom:0pt'><font size=2>$</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: double black 2.25pt;background: #EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:4.0pt;margin-bottom:0pt'><font size=2>1,074,819</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background: #EAFFFF ;">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: double black 2.25pt;background: #EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:4.0pt;margin-bottom:0pt'><font size=2>$</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: double black 2.25pt;background: #EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:4.0pt;margin-bottom:0pt'><font size=2>1,041,967</font></p> </td>
        <td width="1%" valign=bottom style='background: #EAFFFF ; '>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td> </tr></table>
</div>

<p style=' margin-bottom:0pt; margin-top:14pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:18pt; margin-top:14pt;text-align:left;'><font size=2>See notes to consolidated financial statements.</font></p>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>3</font></p>
<!-- EEDocs PBStart-->
<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"><FONT face="Times New Roman, Times, Serif" size=2></FONT>&nbsp;</P>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>
<PAGE>
<hr align="center" width="99%" noshade size="2">
<div style="PAGE-BREAK-AFTER: always">&nbsp;</div>
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<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>
<a href="#toc-main"><font size="2"><font face="Times New Roman, Times, Serif" size="1"><u><i>Table of Contents</i></u></font></font></a>
<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

<p style=' margin-bottom:6pt; margin-top:3pt;text-align:center;'><font size=2>ENERGY CONVERSION DEVICES, INC. and SUBSIDIARIES</font></p>

<p style=' margin-bottom:6pt; margin-top:0pt;text-align:center;'><U><font SIZE=2>CONSOLIDATED STATEMENTS OF CASH FLOWS</font></U></p>

<p style=' margin-bottom:6pt; margin-top:0pt;text-align:center;'><font size=2>(In thousands)</font></p>

<p style=' margin-bottom:6pt; margin-top:0pt;text-align:center;'><font size=2><u>(Unaudited)</u></font></p>


<div align=left>

<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="99%" STYLE="margin-left:2.9pt;border-collapse:collapse">
    <tr style='page-break-inside:avoid'>
        <TD VALIGN="bottom">
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td colspan="5" valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt'><font size=2>Three Months Ended</font><br> <font size=2>September&nbsp;30,</font></p> </td>
        <TD VALIGN="BOTTOM" ALIGN="LEFT">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <TD VALIGN="bottom">
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:.0pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td colspan="2" valign=bottom style=' border-bottom:solid black 1.0pt; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:.0pt;margin-bottom:0pt'><font size=2>2008</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:.0pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <td colspan="2" valign=bottom style=' border-bottom:solid black 1.0pt; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:.0pt;margin-bottom:0pt'><font size=2>2007</font></p> </td>
        <TD VALIGN="BOTTOM" ALIGN="LEFT">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:.0pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td> </tr>

    <tr style='page-break-inside:avoid'>
        <TD WIDTH="72.5%" VALIGN="top" STYLE="background:#EAFFFF">
            <p style='margin-left:.25in;text-indent:-.25in;text-align:left;margin-top:2pt;margin-bottom:0pt'><font SIZE=2>OPERATING ACTIVITIES:</font></p> </td>
        <TD WIDTH="1%" VALIGN="BOTTOM" STYLE="background:#EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD WIDTH="8.5%" VALIGN="BOTTOM" STYLE="border-top:solid black 1.0pt; background:#EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD WIDTH="7%" VALIGN="BOTTOM" STYLE="background:#EAFFFF ;">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD WIDTH="1%" VALIGN="BOTTOM" STYLE="background:#EAFFFF ;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD WIDTH="8.5%" VALIGN="BOTTOM" STYLE="background:#EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD WIDTH="1%" VALIGN="BOTTOM" STYLE="background:#EAFFFF ;" ALIGN="LEFT">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <TD VALIGN="top">
            <p style='margin-left:.35in;text-indent:-.15in;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>Net income (loss)</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>$</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>12,661</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>$</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:2.25pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>(7,567</font></p> </td>
        <TD VALIGN="BOTTOM" ALIGN="LEFT">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>)</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <TD VALIGN="top" STYLE="background:#EAFFFF">
            <p style='margin-left:.35in;text-indent:-.15in;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>Adjustments to reconcile net income (loss) to net cash</font><br> <font size=2>provided by (used in) operating activities:</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF ;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF ;">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF ;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF ;" ALIGN="LEFT">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <TD VALIGN="top">
            <p style='margin-left:.5in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>Depreciation and amortization</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>6,969</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>3,693</font></p> </td>
        <TD VALIGN="BOTTOM" ALIGN="LEFT">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <TD VALIGN="top" STYLE="background:#EAFFFF">
            <p style='margin-left:.5in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>Stock and stock options issued for services rendered</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF ;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>1,478</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF ;">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF ;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>268</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF ;" ALIGN="LEFT">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <TD VALIGN="top">
            <p style='margin-left:.5in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>Other-than-temporary impairment of investment</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>964</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt'><font size=2>&#151;</font></p> </td>
        <TD VALIGN="BOTTOM" ALIGN="LEFT">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <TD VALIGN="top" STYLE="background:#EAFFFF">
            <p style='margin-left:.5in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>Other</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF ;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>330</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF ;">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF ;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>713</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF ;" ALIGN="LEFT">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <TD VALIGN="top">
            <p style='margin-left:.35in;text-indent:-.15in;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>Changes in working capital:</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" ALIGN="LEFT">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <TD VALIGN="top" STYLE="background:#EAFFFF">
            <p style='margin-left:.5in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>Accounts receivable</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF ;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>(9,784</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF ;">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>)</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF ;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>(8,651</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF ;" ALIGN="LEFT">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>)</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <TD VALIGN="top">
            <p style='margin-left:.5in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>Inventories</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>(3,127</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>)</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>4,434</font></p> </td>
        <TD VALIGN="BOTTOM" ALIGN="LEFT">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <TD VALIGN="top" STYLE="background:#EAFFFF">
            <p style='margin-left:.5in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>Other assets</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF ;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>813</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF ;">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF ;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>(1,081</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF ;" ALIGN="LEFT">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>)</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <TD VALIGN="top">
            <p style='margin-left:.5in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>Accounts payable and accrued expenses</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>13,744</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>(4,483</font></p> </td>
        <TD VALIGN="BOTTOM" ALIGN="LEFT">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>)</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <TD VALIGN="top" STYLE="background:#EAFFFF">
            <p style='margin-left:.5in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>Restructuring reserve</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF ;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>(330</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF ;">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>)</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF ;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>(2,237</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF ;" ALIGN="LEFT">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>)</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <TD VALIGN="top">
            <p style='margin-left:.5in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom: 0in'><font size=2>Deferred revenues </font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: solid black 1.0pt;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: solid black 1.0pt;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>2,814</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: solid black 1.0pt;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: solid black 1.0pt;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>103</font></p> </td>
        <TD VALIGN="BOTTOM" ALIGN="LEFT">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <TD VALIGN="top" STYLE="background:#EAFFFF">
            <p style='margin-left:.25in;text-indent:-.25in;text-align:left;margin-top:1.0pt;margin-bottom: 0in'><font SIZE=2>NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: solid black 1.0pt;background: #EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: solid black 1.0pt;background: #EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>26,532</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF ;">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: solid black 1.0pt;background: #EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: solid black 1.0pt;background: #EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>(14,808</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: solid #EAFFFF  1.0pt;background:#EAFFFF ;" ALIGN="LEFT">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>)</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <TD VALIGN="top">
            <p style='margin-left:.25in;text-indent:-.25in;text-align:left;margin-top:4.0pt;margin-bottom: 0in'><font SIZE=2>INVESTING ACTIVITIES:</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:4.0pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:4.0pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:4.0pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:4.0pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:4.0pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" ALIGN="LEFT">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:4.0pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <TD VALIGN="top" STYLE="background:#EAFFFF">
            <p style='margin-left:.35in;text-indent:-.15in;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>Purchases of property, plant and equipment (including construction </font><br> <font size=2>in progress)</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF ;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>(46,909</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF ;">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>)</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF ;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>(30,118</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF ;" ALIGN="LEFT">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>)</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <TD VALIGN="top">
            <p style='margin-left:.35in;text-indent:-.15in;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>Investment in joint venture</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>(1,000</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>)</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt'><font size=2>&#151;</font></p> </td>
        <TD VALIGN="BOTTOM" ALIGN="LEFT">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <TD VALIGN="top" STYLE="background:#EAFFFF">
            <p style='margin-left:.35in;text-indent:-.15in;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>Purchases of investments</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF ;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt'><font size=2>&#151;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF ;">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF ;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>(42,400</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF ;" ALIGN="LEFT">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>)</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <TD VALIGN="top">
            <p style='margin-left:.35in;text-indent:-.15in;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>Proceeds from maturities of investments</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>2,700</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>66,760</font></p> </td>
        <TD VALIGN="BOTTOM" ALIGN="LEFT">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <TD VALIGN="top" STYLE="background:#EAFFFF">
            <p style='margin-left:.35in;text-indent:-.15in;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>Proceeds from sales of investments</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF ;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt'><font size=2>&#151;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF ;">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF ;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>10,610</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF ;" ALIGN="LEFT">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <TD VALIGN="top">
            <p style='margin-left:.35in;text-indent:-.15in;text-align:left;margin-top:1.0pt;margin-bottom: 0in'><font size=2>Proceeds from sales of property, plant and equipment</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: solid black 1.0pt;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: solid black 1.0pt;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt'><font size=2>&#151;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: solid black 1.0pt;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: solid black 1.0pt;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>9</font></p> </td>
        <TD VALIGN="BOTTOM" ALIGN="LEFT">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <TD VALIGN="top" STYLE="background:#EAFFFF">
            <p style='margin-left:.25in;text-indent:-.25in;text-align:left;margin-top:1.0pt;margin-bottom: 0in'><font SIZE=2>NET CASH (USED IN) PROVIDED BY INVESTING ACTIVITIES</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: solid black 1.0pt;background: #EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: solid black 1.0pt;background: #EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>(45,209</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF ;">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>)</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: solid black 1.0pt;background: #EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: solid black 1.0pt;background: #EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>4,861</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF ;" ALIGN="LEFT">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <TD VALIGN="top">
            <p style='margin-left:.25in;text-indent:-.25in;text-align:left;margin-top:4.0pt;margin-bottom: 0in'><font SIZE=2>FINANCING ACTIVITIES:</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:4.0pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:4.0pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:4.0pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:4.0pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:4.0pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" ALIGN="LEFT">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:4.0pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <TD VALIGN="top" STYLE="background:#EAFFFF">
            <p style='margin-left:.35in;text-indent:-.15in;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>Principal payments for assets under capitalized lease obligations</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF ;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>(256</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF ;">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>)</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF ;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>(252</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF ;" ALIGN="LEFT">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>)</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <TD VALIGN="top">
            <p style='margin-left:.35in;text-indent:-.15in;text-align:left;margin-top:1.0pt;margin-bottom: 0in'><font size=2>Proceeds from sale of stock and exercise of stock options, net of expenses</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: solid black 1.0pt;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: solid black 1.0pt;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>1,191</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: solid black 1.0pt;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: solid black 1.0pt;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>1,010</font></p> </td>
        <TD VALIGN="BOTTOM" ALIGN="LEFT">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <TD VALIGN="top" STYLE="background:#EAFFFF">
            <p style='margin-left:.25in;text-indent:-.25in;text-align:left;margin-top:1.0pt;margin-bottom: 0in'><font SIZE=2>NET CASH PROVIDED BY FINANCING ACTIVITIES</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: solid black 1.0pt;background: #EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: solid black 1.0pt;background: #EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>935</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF ;">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: solid black 1.0pt;background: #EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: solid black 1.0pt;background: #EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>758</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF ;" ALIGN="LEFT">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <TD VALIGN="top">
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:1.0pt;margin-bottom: 0in'><font SIZE=2>EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: solid black 1.0pt;background: white">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:4.0pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: solid black 1.0pt;background: white">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:4.0pt;margin-bottom:0pt'><font size=2>268</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: solid black 1.0pt;background: white">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:4.0pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: solid black 1.0pt;background: white">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:4.0pt;margin-bottom:0pt'><font size=2>118</font></p> </td>
        <TD VALIGN="BOTTOM" ALIGN="LEFT">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <TD VALIGN="top" STYLE="background:#EAFFFF">
            <p style='margin-left:.25in;text-indent:-.25in;text-align:left;margin-top:4.0pt;margin-bottom: 0in'><font SIZE=2>NET DECREASE IN CASH AND CASH EQUIVALENTS</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:4.0pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:4.0pt;margin-bottom:0pt'><font size=2>(17,474</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF ;">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:4.0pt;margin-bottom:0.5pt'><font size=2>)</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:4.0pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:4.0pt;margin-bottom:0pt'><font size=2>(9,071</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF ;" ALIGN="LEFT">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:4.0pt;margin-bottom:0.5pt'><font size=2>)</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <TD VALIGN="top">
            <p style='margin-left:.25in;text-indent:-.25in;text-align:left;margin-top:1.0pt;margin-bottom: 0in'><font SIZE=2>CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: solid black 1.0pt;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:4.0pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: solid black 1.0pt;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:4.0pt;margin-bottom:0pt'><font size=2>484,492</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: solid black 1.0pt;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:4.0pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: solid black 1.0pt;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:4.0pt;margin-bottom:0pt'><font size=2>80,770</font></p> </td>
        <TD VALIGN="BOTTOM" ALIGN="LEFT">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <TD VALIGN="top" STYLE="background:#EAFFFF">
            <p style='margin-left:.25in;text-indent:-.25in;text-align:left;margin-top:1.5pt;margin-bottom: 0in'><font SIZE=2>CASH AND CASH EQUIVALENTS AT END OF PERIOD</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: double black 2.25pt;background: #EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:4.0pt;margin-bottom:0pt'><font size=2>$</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: double black 2.25pt;background: #EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:4.0pt;margin-bottom:0pt'><font size=2>467,018</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF ;">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: double black 2.25pt;background: #EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:4.0pt;margin-bottom:0pt'><font size=2>$</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: double black 2.25pt;background: #EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:4.0pt;margin-bottom:0pt'><font size=2>71,699</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF ;" ALIGN="LEFT">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td> </tr></table>
</div>


<p style=' margin-bottom:1pt; margin-top:4pt; margin-left:0.06in;text-align:left;'><font size=2>See notes to consolidated financial statements.</font></p>


<p style=' margin-bottom:4pt; margin-top:4pt;text-align:center;'><font size=2>4</font></p>
<!-- EEDocs PBStart-->
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<PAGE>
<hr align="center" width="99%" noshade size="2">
<div style="PAGE-BREAK-AFTER: always">&nbsp;</div>
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<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>
<a href="#toc-main"><font size="2"><font face="Times New Roman, Times, Serif" size="1"><u><i>Table of Contents</i></u></font></font></a>
<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

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


<p style=' margin-bottom:18pt; margin-top:0pt;text-align:center;'><font size=2>ENERGY CONVERSION DEVICES, INC. and SUBSIDIARIES</font></p>

<p style=' margin-bottom:6pt; margin-top:0pt;text-align:center;'><U><font SIZE=2>CONSOLIDATED STATEMENTS OF CASH FLOWS</font></U></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:center;'><u><font size=2>(In thousands)</font></u></p>

<p style=' margin-bottom:18pt; margin-top:0pt;text-align:center;'><font size=2>(Unaudited)</font></p>

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


<div align=left>

<TABLE BORDER="0" CELLSPACING="0" CELLPADDING="0" WIDTH="90%" STYLE="margin-left:25.85pt;border-collapse:collapse">
    <tr style='page-break-inside:avoid'>
        <TD VALIGN="bottom">
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td colspan="6" valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt'><font size=2>Three Months Ended</font><br> <font size=2>September&nbsp;30,</font></p> </td> </TR>

    <tr style='page-break-inside:avoid'>
        <TD VALIGN="bottom">
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td colspan="2" valign=bottom style=' border-bottom:solid black 1.0pt; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>2008</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <td colspan="2" valign=bottom style=' border-bottom:solid black 1.0pt; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>2007</font></p> </td>
        <td width="1%" valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td> </tr>

    <tr style='page-break-inside:avoid'>
        <TD WIDTH="72%" VALIGN="top" STYLE="background:#DFFFFF">
            <p style='margin-left:21.3pt;text-indent:-.25in;text-align:left;margin-top:2pt;margin-bottom:0pt'><font SIZE=2>SUPPLEMENTAL DISCLOSURES OF CASH FLOW </font><br> <font SIZE=2>INFORMATION:</font></p> </td>
        <TD WIDTH="1%" VALIGN="BOTTOM" STYLE="background:#DFFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD WIDTH="8%" VALIGN="BOTTOM" STYLE="border-top:solid black 1.0pt; background:#DFFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD WIDTH="7%" VALIGN="BOTTOM" STYLE="background:#DFFFFF;">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD WIDTH="1%" VALIGN="BOTTOM" STYLE="background:#DFFFFF;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD WIDTH="8%" VALIGN="BOTTOM" STYLE="background:#DFFFFF;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD WIDTH="1%" VALIGN="BOTTOM" STYLE="background:#DFFFFF;">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <TD VALIGN="top">
            <p style='margin-left:46.95pt;text-indent:-12.0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>Noncash transactions:</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td width="8%" valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td width="1%" valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td width="1%" valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <TD VALIGN="top" STYLE="background:#DFFFFF">
            <p style='margin-left:64.95pt;text-indent:-.25in;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>Capital lease obligations to finance capital equipment</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#DFFFFF;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>$</font></p> </td>
        <td width="8%" valign=bottom style='background:#DFFFFF; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt'><font size=2>&#151;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#DFFFFF;">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td width="1%" valign=bottom style='background:#DFFFFF; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>$</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#DFFFFF;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>183</font></p> </td>
        <td width="1%" valign=bottom style='background:#DFFFFF; '>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td> </tr></table>
</div>

<p style=' margin-bottom:20pt; margin-top:30pt;text-align:left;'><font size=2>&nbsp;</font></p>

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

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

<p style=' margin-bottom:20pt; margin-top:30pt;text-align:left;'><font size=2>&nbsp;</font></p>

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

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

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

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

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

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

<p style=' margin-bottom:18pt; margin-top:0pt;text-align:left;'><font size=2>See notes to consolidated financial statements.</font></p>

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>5</font></p>
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<div style="PAGE-BREAK-AFTER: always">&nbsp;</div>
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<a href="#toc-main"><font size="2"><font face="Times New Roman, Times, Serif" size="1"><u><i>Table of Contents</i></u></font></font></a>
<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

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


<p style=' margin-bottom:12pt; margin-top:0pt;text-align:center;'><font size=2>ENERGY CONVERSION DEVICES, INC. and SUBSIDIARIES</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:center;'><font size=2>Notes to Consolidated Financial Statements</font></p>

<p style=' margin-bottom:8pt; margin-top:0pt;text-align:center;'><font size=2>(In thousands, except for share data)</font></p>
<BR>
<p style=' margin-bottom:18pt; margin-top:0pt;text-align:left;'><font size=2><U>Note A &#151; The Company and Summary of Accounting Policies</U></font></p>


<p style=' margin-bottom:18pt; margin-top:0pt;text-align:justify;'><u><font size=2>Basis of Presentation</font></u></p>

<p style=' margin-bottom:18pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><FONT SIZE="2">In the opinion of management, all adjustments (consisting solely of normal recurring adjustments) considered necessary for a fair presentation of the consolidated financial statements for the interim periods have been included. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to the Securities and Exchange Commission&#146;s rules and regulations. The Company believes that the disclosures are adequate to make the information presented not misleading. It is highly recommended that these condensed consolidated financial statements be read in conjunction with the consolidated financial statements and notes thereto included
in the Company&#146;s latest annual report on Form 10-K, which is available on the Company&#146;s website </FONT> <FONT COLOR="#0000FF" SIZE="2">www.ovonic.com</FONT><FONT SIZE="2">. </FONT></p>

<p style=' margin-bottom:18pt; margin-top:0pt;text-align:justify;'><u><font size=2>Financial Statement Presentation</font></u></p>

<p style=' margin-bottom:18pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>The consolidated financial statements include the accounts of Energy Conversion Devices, Inc. (&#147;ECD&#148;) and its 100%-owned subsidiaries United Solar Ovonic LLC and United Solar Ovonic Corporation (collectively referred to as &#147;United Solar&#148;) and its 91.4%-owned subsidiary Ovonic Battery Company, Inc. (&#147;Ovonic Battery&#148; or &#147;OBC&#148;) (collectively the &#147;Company&#148;). No minority interest related to Ovonic Battery is recorded in the consolidated financial statements because there is no additional funding requirement by the minority stockholders. </font></p>

<p style=' margin-bottom:18pt; margin-top:0pt;text-align:left;'><u><font size=2>Summary of Significant Accounting Policies</font></u></p>

<p style=' margin-bottom:18pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>Our significant accounting policies are more fully described in Note&nbsp;A, &#147;The Company and Summary of Accounting Policies,&#148; of the Notes to our Consolidated Financial Statements for the year ended June 30, 2008 as reported in our Annual Report on Form 10-K. The only change to our significant accounting policies since June 30, 2008 has been the adoption of SFAS 157. </font></p>

<p style=' margin-bottom:18pt; margin-top:0pt;text-align:left;'><u><font size=2>Use of Estimates</font></u></p>

<p style=' margin-bottom:18pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (U.S. GAAP) requires management to make estimates and assumptions that affect amounts reported therein. Due to the inherent uncertainty involved in making estimates, actual results reported in future periods may be based upon amounts that differ from those estimates.</font></p>

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>6</font></p>
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<PAGE>
<hr align="center" width="99%" noshade size="2">
<div style="PAGE-BREAK-AFTER: always">&nbsp;</div>
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<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>
<a href="#toc-main"><font size="2"><font face="Times New Roman, Times, Serif" size="1"><u><i>Table of Contents</i></u></font></font></a>
<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 4pt; TEXT-ALIGN: left">&nbsp;</p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:center;'><font size=2>ENERGY CONVERSION DEVICES, INC. and SUBSIDIARIES</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:center;'><font size=2>Notes to Consolidated Financial Statements</font></p>

<p style=' margin-bottom:18pt; margin-top:0pt;text-align:left;'><u><font size=2>Note A &#151; The Company and Summary of Accounting Policies (Continued)</font></u></p>

<p style=' margin-bottom:18pt; margin-top:0pt;text-align:justify;'><u><font size=2>Reclassifications</font></u></p>

<p style=' margin-bottom:18pt; margin-top:0pt; text-indent:0.44in;text-align:justify;'><font size=2>Certain amounts in the June 30, 2008 balance sheet have been reclassified to meet the presentation adopted during the quarter ended September&nbsp;30, 2008.</font><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>

<p style=' margin-bottom:18pt; margin-top:0pt;text-align:justify;'><u><font size=2>Basic and Diluted Net Income (Loss) Per Share</font></u></p>

<p style=' margin-bottom:18pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>The basic net income (loss) per common share is computed by dividing the net income (loss) by the weighted average number of common shares outstanding. The Company uses the treasury stock method to calculate diluted earnings per share. Potential dilution exists from stock options, warrants and Convertible Senior Notes. The weighted average number of shares outstanding and basic and diluted net income (loss) per share for the quarters ended September&nbsp;30, 2008 and 2007 are computed as follows:</font></p>

<div align=left>

<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="95%" STYLE="margin-left:0pt;border-collapse:collapse">
    <tr style='page-break-inside:avoid'>
        <TD VALIGN="bottom">
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:1.0pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td colspan="2" valign=bottom style=' border-bottom:solid black 1.0pt; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt'><font size=2>2008</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <td colspan="2" valign=bottom style=' border-bottom:solid black 1.0pt; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt'><font size=2>2007</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <TD WIDTH="67%" VALIGN="top" STYLE="background:#EAFFFF">
            <p style='margin-left:.25in;text-indent:-.25in;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>Weighted average number of shares outstanding:</font></p> </td>
        <TD WIDTH="1%" VALIGN="BOTTOM" STYLE="background:#EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD WIDTH="9%" VALIGN="BOTTOM" STYLE="border-top: solid black 1.0pt;background: #EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD WIDTH="7%" VALIGN="BOTTOM" STYLE="background:#EAFFFF;">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD WIDTH="1%" VALIGN="BOTTOM" STYLE="background:#EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD WIDTH="9%" VALIGN="BOTTOM" STYLE="border-top: solid black 1.0pt;background: #EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD WIDTH="1%" VALIGN="BOTTOM" STYLE="background:#EAFFFF">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <TD VALIGN="top">
            <p style='margin-left:22.6pt;text-indent:-12.0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&#9472;&nbsp;&nbsp;for basic net income (loss) per share</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>42,221,611</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>39,837,992</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <TD VALIGN="top" STYLE="background:#EAFFFF">
            <p style='margin-left:22.6pt;text-indent:-12.0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&#9472;&nbsp;&nbsp;for diluted net income (loss) per share</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>43,051,810</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF;">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>39,837,992</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <TD VALIGN="top">
            <p style='margin-left:21.3pt;text-indent:-.25in;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>Net income (loss) from operations before income taxes</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>$</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>12,718</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>$</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:2.25pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>(7,561</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>)</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <TD VALIGN="top" STYLE="background:#EAFFFF">
            <p style='margin-left:.3in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom: 0in'><font size=2>Income taxes </font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: solid black 1.0pt; background:#EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: solid black 1.0pt; background:#EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>57</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF;">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: solid black 1.0pt; background:#EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: solid black 1.0pt; background:#EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>6</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <TD VALIGN="bottom">
            <p style='margin-left:.25in;text-indent:-.25in;text-align:left;margin-top:1.5pt;margin-bottom: 0in'><font size=2>Net income (loss)</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: double black 2.25pt;background: white">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>$</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: double black 2.25pt;background: white">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>12,661</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: double black 2.25pt;background: white">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>$</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: double black 2.25pt;background: white">
            <p style='margin-left:0pt;text-indent:2.25pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>(7,567</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: double white 2.25pt;">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>)</font></p> </td> </tr></table>
</div>

<p style=' margin-bottom:18pt; margin-top:18pt; text-indent:0.5in;text-align:justify;'><font size=2>For 2008, the weighted average shares for both basic and diluted earnings per share do not include shares issued pursuant to the share lending agreement executed in conjunction with the issuance of the Convertible Senior Notes.</font></p>

<p style=' margin-bottom:18pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>Due to the Company&#146;s net loss, the 2007 weighted average shares of potential dilutive securities of 684,994 were excluded from the calculations of diluted loss per share, as inclusion of these securities would have been antidilutive due to the net loss per share. Additionally, securities of 71,670 and 24,734, respectively, were excluded from the 2008 and 2007 calculations as these securities would have been antidilutive regardless of the Company&#146;s net income or loss.</font></p>

<p style=' margin-bottom:18pt; margin-top:0pt;text-align:left;'><u><font size=2>Recent Pronouncements</font></u></p>

<p style=' margin-bottom:18pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>On December&nbsp;4, 2007, the FASB issued Statement of Financial Accounting Standards (SFAS) No. 160, &#147;Noncontrolling Interests in Consolidated Financial Statements &#150; An Amendment of ARB No. 51.&#148;  SFAS No. 160 establishes new accounting and reporting standards for the noncontrolling interest in a subsidiary and for the deconsolidation of a subsidiary. Specifically, this statement requires the recognition of a noncontrolling interest </font></p>

<p style=' margin-bottom:1pt; margin-top:1pt;text-align:center;'><font size=2>7</font></p>
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<a href="#toc-main"><font size="2"><font face="Times New Roman, Times, Serif" size="1"><u><i>Table of Contents</i></u></font></font></a>
<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

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


<p style=' margin-bottom:12pt; margin-top:0pt;text-align:center;'><font size=2>ENERGY CONVERSION DEVICES, INC. and SUBSIDIARIES</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:center;'><font size=2>Notes to Consolidated Financial Statements</font></p>

<p style=' margin-bottom:18pt; margin-top:0pt;text-align:left;'><u><font size=2>Note A &#151; The Company and Summary of Accounting Policies (Continued)</font></u></p>

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

<p style=' margin-bottom:18pt; margin-top:0pt;text-align:justify;'>
<font size=2>(minority interest) as equity in the consolidated financial statements and separate from the parent&#146;s equity. The amount of net income attributable to the noncontrolling interest will be included in consolidated net income on the face of the income statement. SFAS No. 160 clarifies that changes in a parent&#146;s ownership interest in a subsidiary that do not result in deconsolidation are equity transactions if the parent retains its controlling financial interest. In addition, this statement requires that a parent recognize a gain or loss in net income when a subsidiary is deconsolidated. Such gain or loss will be measured using the fair value of the noncontrolling equity investment on the deconsolidation date. SFAS No. 160 also includes expanded disclosure requirements regarding the interests of the parent and its noncontrolling interest. SFAS No. 160 is effective for fiscal years, and interim
periods within those fiscal years, beginning on or after December&nbsp;15, 2008. Earlier adoption is prohibited. The Company believes this Statement will not have an impact on our financial statements.</font></p>

<p style=' margin-bottom:18pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>In December 2007, the FASB issued SFAS 141R, &#147;Business Combinations,&#148; which is a revision of SFAS 141. SFAS No. 141R changes the accounting for acquisitions. SFAS No. 141R is effective for fiscal years beginning after December 15, 2008. The impact of this Statement will be determined if and when an acquisition occurs.</font></p>

<p style=' margin-bottom:18pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>SFAS No. 161, &#147;Disclosures about Derivative Instruments and Hedging Activities &#150; An Amendment of FASB Statement No. 133, (SFAS No. 133)&#148; was issued in March 2008. The standard requires enhanced disclosures about how and why a company uses derivative instruments, how derivative instruments and related hedged items are accounted for under SFAS No. 133 and how derivative instruments and related hedged items affect a company&#146;s financial position, financial performance and cash flows. SFAS No. 161 is effective for fiscal years beginning after November 15, 2008. Early adoption is permitted. The Company will adopt the disclosure requirements of this standard during the third quarter of the current fiscal year.</font></p>

<p style=' margin-bottom:18pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>SFAS No. 162, &#147;The Hierarchy of Generally Accepted Accounting Principles,&#148; was issued in May 2008. The standard defines the order in which various sources of generally accepted accounting principles should be followed. It is effective 60 days following the SEC&#146;s approval of the Public Company Accounting Oversight Board&#146;s amendments to AU 411, &#147;The Meaning of Present Fairly in Conformity With Generally Accepted Accounting Principles.&#148;  The Company believes this standard will not have a significant impact on its financial statements.</font></p>

<p style=' margin-bottom:18pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>In May 2008, the FASB issued FASB Staff Position (FSP) APB 14-1, &#147;Accounting for Convertible Debt Instruments That May Be Settled in Cash upon Conversion.&#148;  The FSP applies to convertible debt instruments that give the issuer the choice of settling the instrument on conversion either (a) entirely in cash or other assets or (b) partially in shares and partially in cash or other assets. The FSP would require issuers to account separately for the liability and equity components of convertible debt instruments that have stated terms permitting settlement on conversion in cash or other assets, with one exception. That accounting would not apply if the embedded conversion option must be accounted for separately as a derivative </font></p>

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>8</font></p>
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<a href="#toc-main"><font size="2"><font face="Times New Roman, Times, Serif" size="1"><u><i>Table of Contents</i></u></font></font></a>
<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

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


<p style=' margin-bottom:12pt; margin-top:0pt;text-align:center;'><font size=2>ENERGY CONVERSION DEVICES, INC. and SUBSIDIARIES</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:center;'><font size=2>Notes to Consolidated Financial Statements</font></p>

<p style=' margin-bottom:18pt; margin-top:0pt;text-align:left;'><u><font size=2>Note A &#151; The Company and Summary of Accounting Policies (Continued)</font></u></p>

<p style=' margin-bottom:18pt; margin-top:0pt;text-align:justify;'><font size=2>under SFAS No. 133. Convertible preferred shares accounted for in equity or temporary equity would also not be subject to the FSP. The FSP would be effective for financial statements issued for fiscal years beginning after December&nbsp;15, 2008 and interim periods within those fiscal years. Early adoption would not be permitted. The FSP APB 14-1 would be applied retrospectively to all periods presented in the financial statements. The cumulative effect of the accounting change on periods before those presented would be recognized as of the beginning of the first period presented, with an offsetting adjustment to the opening balance of retained earnings for that period, which would be presented separately. Assuming a market rate of 12% at issuance on our Convertible Senior Notes, the implementation of FSP APB 14-1 would result in a reduction of our Convertible Senior Notes of approximately $102,770, an
increase in additional paid-in capital of approximately $102,770 and an increase in interest expense of approximately $3,680 for the three months ended September&nbsp;30, 2008.</font></p>

<p style=' margin-bottom:18pt; margin-top:0pt;text-align:left;'><u><font size=2>Note B &#150; Investments</font></u></p>

<p style=' margin-bottom:18pt; margin-top:0pt;text-align:justify;'><i><font size=2>Short-Term Investments</font></i></p>

<p style=' margin-bottom:18pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>Short-term investments consist of corporate bonds and certificates of deposit which mature 91 days or more from date of acquisition. The following schedule summarizes the unrealized gains and losses on the Company&#146;s short-term investments:</font></p>


<div align=left>

<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="95%" STYLE="border-collapse:collapse">
    <tr style='page-break-inside:avoid'>
        <TD VALIGN="TOP">
            <p style='margin-left:15.65pt;text-indent:-.2in;text-align:center;margin-top:1.0pt;margin-bottom:0in'><font size=2>&nbsp;</font></p> </td>
        <td colspan="5" >
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2.0pt;margin-bottom:0pt'><font size=2>Amortized</font></p> </td>
        <TD>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2.0pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td colspan="11">
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt'><font size=2>Gross Unrealized</font></p> </td>
        <TD>
            <p style='margin-left:0in;text-indent:0pt;text-align:center;margin-top:2.0pt;margin-bottom:0in'><font size=2>&nbsp;</font></p> </td>
        <td colspan="5" >
            <p style='margin-left:0in;text-indent:0pt;text-align:center;margin-top:2.0pt;margin-bottom:0in'><font size=2>Estimated</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <TD VALIGN="TOP">
            <p style='margin-left:15.65pt;text-indent:-.2in;text-align:center;margin-top:0pt;margin-bottom:0in'><font size=2>&nbsp;</font></p> </td>
        <td width="2%" valign=top >
            <p style='margin-left:0in;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0in'><font size=2>&nbsp;</font></p> </td>
        <td colspan="3" valign=top style=' border-bottom:solid black 1.0pt; '>
            <p style='margin:0in;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>Cost</font></p> </td>
        <td width="2%" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="top">
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td width="2%" valign=top >
            <p style='margin-left:0in;text-indent:0pt;text-align:center;margin-top:1pt;margin-bottom:0in'><font size=2>&nbsp;</font></p> </td>
        <td colspan="3" valign=top style='border-left:none;border-bottom:solid black 1.0pt;border-right:none;  '>
            <p style='margin:0in;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>Gains</font></p> </td>
        <td width="2%" valign=top >
            <p style='margin-left:0in;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0in'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="top">
            <p style='margin-left:0in;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0in'><font size=2>&nbsp;</font></p> </td>
        <td width="2%" valign=top >
            <p style='margin-left:0in;text-indent:0pt;text-align:center;margin-top:1pt;margin-bottom:0in'><font size=2>&nbsp;</font></p> </td>
        <td colspan="3" valign=top style='border-left:none;border-bottom:solid black 1.0pt;border-right:none;  '>
            <p style='margin:0in;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>(Losses)</font></p> </td>
        <td width="2%" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="top">
            <p style='margin-left:0in;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0in'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="TOP" STYLE=" border-bottom:solid black 1.0pt;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td colspan="3" valign=top style=' border-bottom:solid black 1.0pt; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0in;margin-bottom:0pt'><font size=2>Fair Value</font></p> </td>
        <TD VALIGN="top">
            <p style='margin-left:0in;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0in'><font size=2>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <TD WIDTH="27%" VALIGN="TOP" STYLE="background:#EAFFFF">
            <p style='margin-left:15.65pt;text-indent:-.2in;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>September&nbsp;30, 2008</font></p> </td>
        <TD WIDTH="2%" VALIGN="bottom" STYLE="background:#EAFFFF;">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD WIDTH="1%" VALIGN="BOTTOM" STYLE="background:#EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD WIDTH="8.1%" VALIGN="BOTTOM" STYLE="border-top:solid black 1.0pt; background:#EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD WIDTH="1%" VALIGN="BOTTOM" STYLE="border-top:solid black 1.0pt; background:#EAFFFF">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD WIDTH="2%" VALIGN="TOP" STYLE="background:#EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD WIDTH="6.5%" VALIGN="bottom" STYLE="background:#EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD WIDTH="2%" VALIGN="bottom" STYLE="background:#EAFFFF;">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD WIDTH="1%" VALIGN="BOTTOM" STYLE="background:#EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD WIDTH="6%" VALIGN="BOTTOM" STYLE="border-top:solid black 1.0pt; background:#EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD WIDTH="1%" VALIGN="TOP" STYLE="border-top:solid black 1.0pt; background:#EAFFFF">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD WIDTH="2%" VALIGN="TOP" STYLE="background:#EAFFFF">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD WIDTH="3.5%" VALIGN="bottom" STYLE="background:#EAFFFF;">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD WIDTH="2%" VALIGN="bottom" STYLE="background:#EAFFFF;">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD WIDTH="1%" VALIGN="BOTTOM" STYLE="background:#EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD WIDTH="7.5%" VALIGN="BOTTOM" STYLE="border-top:solid black 1.0pt; background:#EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD WIDTH="1%" VALIGN="BOTTOM" STYLE="border-top:solid black 1.0pt; background:#EAFFFF">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD WIDTH="2%" VALIGN="bottom" STYLE="background:#EAFFFF;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD WIDTH="6.5%" VALIGN="bottom" STYLE="background:#EAFFFF;">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD WIDTH="1.5%" VALIGN="TOP" STYLE="background:#EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD WIDTH="1%" VALIGN="BOTTOM" STYLE="background:#EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD WIDTH="8.1%" VALIGN="BOTTOM" STYLE="border-top:solid black 1.0pt; background:#EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD WIDTH="1%" VALIGN="BOTTOM" STYLE="background:#EAFFFF">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD WIDTH="1.5%" VALIGN="bottom" STYLE="background:#EAFFFF;">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <TD VALIGN="TOP">
            <p style='margin-left:36.65pt;text-indent:-.25in;text-align:left;margin-top:1.5pt;margin-bottom: 0in'><font size=2>Corporate Bonds</font></p> </td>
        <td width="2%" valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: double black 2.25pt;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>$</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: double black 2.25pt;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>12,454</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <td width="2%" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:1.5pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="bottom">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:1.5pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td width="2%" valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: double black 2.25pt;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>$</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: double black 2.25pt;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt'><font size=2>&#151;</font></p> </td>
        <TD VALIGN="TOP">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <td width="2%" valign=top >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="bottom">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <td width="2%" valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: double black 2.25pt;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>$</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: double black 2.25pt;">
            <p style='margin-left:0pt;text-indent:2.25pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>(1,253</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: double white 2.25pt;">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>)</font></p> </td>
        <td width="2%" valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:1.5pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="bottom">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="TOP">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: double black 2.25pt;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>$</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: double black 2.25pt;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>11,201</font></p> </td>
        <td width="1%" valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="bottom">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td> </tr>
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            <p style='margin-left:.25in;text-indent:-.25in;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td width="2%" valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td width="2%" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="bottom">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td width="2%" valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="TOP">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td width="2%" valign=top >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="bottom">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td width="2%" valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td width="2%" valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="bottom">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="TOP">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td width="1%" valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="bottom">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <TD VALIGN="TOP" STYLE="background:#EAFFFF">
            <p style='margin-left:15.65pt;text-indent:-.2in;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>June&nbsp;30, 2008</font></p> </td>
        <td width="2%" valign=bottom style='background:#EAFFFF; '>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF;">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td width="2%" valign=top style='background:#EAFFFF'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="bottom" STYLE="background:#EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td width="2%" valign=bottom style='background:#EAFFFF; '>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="TOP" STYLE="background:#EAFFFF">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td width="2%" valign=top style='background:#EAFFFF'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="bottom" STYLE="background:#EAFFFF;">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td width="2%" valign=bottom style='background:#EAFFFF; '>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF;">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td width="2%" valign=bottom style='background:#EAFFFF; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="bottom" STYLE="background:#EAFFFF;">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="TOP" STYLE="background:#EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td width="1%" valign=bottom style='background:#EAFFFF'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="bottom" STYLE="background:#EAFFFF;">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <TD VALIGN="TOP">
            <p style='margin-left:35.3pt;text-indent:-.25in;text-align:left;margin-top:1.5pt;margin-bottom: 0in'><font size=2>Corporate Bonds</font></p> </td>
        <td width="2%" valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: double black 2.25pt;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>$</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: double black 2.25pt;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>15,156</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <td width="2%" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:1.5pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="bottom">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:1.5pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td width="2%" valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: double black 2.25pt;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>$</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: double black 2.25pt;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt'><font size=2>&#151;</font></p> </td>
        <TD VALIGN="TOP">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <td width="2%" valign=top >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="bottom">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <td width="2%" valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: double black 2.25pt;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>$</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: double black 2.25pt;">
            <p style='margin-left:0pt;text-indent:2.25pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>(167</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: double white 2.25pt;">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>)</font></p> </td>
        <td width="2%" valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:1.5pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="bottom">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="TOP">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: double black 2.25pt;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>$</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: double black 2.25pt;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>14,989</font></p> </td>
        <td width="1%" valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="bottom">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td> </tr></table>
</div>

<p style=' margin-bottom:18pt; margin-top:18pt; text-indent:0.5in;text-align:justify;'><font size=2>At September&nbsp;30, 2008, the Company held a corporate bond issued by Lehman Brothers with a cost of $1,102 and an estimated fair value of $138. Because of the bankruptcy proceedings of Lehman Brothers and the decline in the market for their bonds, the Company has recorded this decline in fair value as an other-than-temporary impairment.</font></p>

<p style=' margin-bottom:18pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>The following schedule summarizes the contractual maturities of the Company&#146;s short-term investments:</font></p>

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>9</font></p>
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<a href="#toc-main"><font size="2"><font face="Times New Roman, Times, Serif" size="1"><u><i>Table of Contents</i></u></font></font></a>

<p style=' margin-bottom:12pt; margin-top:6pt;text-align:center;'><font size=2>ENERGY CONVERSION DEVICES, INC. and SUBSIDIARIES</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:center;'><font size=2>Notes to Consolidated Financial Statements</font></p>

<p style=' margin-bottom:17pt; margin-top:0pt;text-align:left;'><u><font size=2>Note B &#151; Investments (Continued)</font></u></p>

<div align=left>

<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="98%" STYLE="border-collapse:collapse">
    <tr style='page-break-inside:avoid'>
        <td width="41%" valign=top >
            <p style='margin-left:.25in;text-indent:-.25in;text-align:left;margin-top:1.0pt;margin-bottom: 0in'><font size=2>&nbsp;</font></p> </td>
        <td colspan="11" valign=bottom style=' border-bottom:solid black 1.0pt; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt'><font size=2>September&nbsp;30, 2008</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0in'><font size=2>&nbsp;</font></p> </td>
        <td colspan="10" valign=bottom style=' border-bottom:solid black 1.0pt; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt'><font size=2>June 30, 2008</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="41%" valign=top >
            <p style='margin-left:.25in;text-indent:-.25in;text-align:center;margin-top:1.0pt;margin-bottom:0in'><font size=2>&nbsp;</font></p> </td>
        <td colspan="5" valign=bottom style=' border-bottom:solid black 1.0pt;  '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt'><font size=2>Amortized Cost</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:1.0pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td colspan="5" valign=bottom style='border-top:solid black 1.0pt; border-left:none;border-bottom:solid black 1.0pt;border-right:none;  '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt'><font size=2>Market <BR>Value</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:center;margin-top:1.0pt;margin-bottom:0in'><font size=2>&nbsp;</font></p> </td>
        <td colspan="5" valign=bottom style=' border-bottom:solid black 1.0pt;  '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt'><font size=2>Amortized</font><br> <font size=2> Cost</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:1.0pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td colspan="4" valign=bottom style='border-top:solid black 1.0pt; border-left:none;border-bottom:solid black 1.0pt;border-right:none;  '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt'><font size=2>Market <BR>Value</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <TD WIDTH="41%" VALIGN="TOP" STYLE="background:#EAFFFF">
            <p style='margin-left:.25in;text-indent:-.25in;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>Due in less than one year</font></p> </td>
        <TD WIDTH="1%" VALIGN="BOTTOM" STYLE="background:#EAFFFF">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD WIDTH="1%" VALIGN="BOTTOM" STYLE="border-top:solid black 1.0pt; background:#EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>$</font></p> </td>
        <TD WIDTH="8%" VALIGN="BOTTOM" STYLE="border-top:solid black 1.0pt; background:#EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>5,201</font></p> </td>
        <TD WIDTH="1%" VALIGN="BOTTOM" STYLE="border-top:solid black 1.0pt; background:#EAFFFF">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD WIDTH="1%" VALIGN="BOTTOM" STYLE="border-top:solid black 1.0pt; background:#EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD WIDTH="3%" VALIGN="BOTTOM" STYLE="background:#EAFFFF;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD WIDTH="1%" VALIGN="BOTTOM" STYLE="background:#EAFFFF">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD WIDTH="1%" VALIGN="BOTTOM" STYLE="border-top:solid black 1.0pt; background:#EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>$</font></p> </td>
        <TD WIDTH="8%" VALIGN="BOTTOM" STYLE="border-top:solid black 1.0pt; background:#EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>5,132</font></p> </td>
        <TD WIDTH="1%" VALIGN="BOTTOM" STYLE="border-top:solid black 1.0pt; background:#EAFFFF">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD WIDTH="1%" VALIGN="BOTTOM" STYLE="border-top:solid black 1.0pt; background:#EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD WIDTH="5%" VALIGN="BOTTOM" STYLE="background:#EAFFFF;">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD WIDTH="1%" VALIGN="BOTTOM" STYLE="background:#EAFFFF">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD WIDTH="1%" VALIGN="BOTTOM" STYLE="border-top:solid black 1.0pt; background:#EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>$</font></p> </td>
        <TD WIDTH="8%" VALIGN="BOTTOM" STYLE="border-top:solid black 1.0pt; background:#EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>3,401</font></p> </td>
        <TD WIDTH="1%" VALIGN="BOTTOM" STYLE="border-top:solid black 1.0pt; background:#EAFFFF">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD WIDTH="1%" VALIGN="BOTTOM" STYLE="border-top:solid black 1.0pt; background:#EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD WIDTH="3%" VALIGN="BOTTOM" STYLE="background:#EAFFFF;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD WIDTH="1.2%" VALIGN="BOTTOM" STYLE="background:#EAFFFF">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD WIDTH="1%" VALIGN="BOTTOM" STYLE="border-top:solid black 1.0pt; background:#EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>$</font></p> </td>
        <TD WIDTH="8%" VALIGN="BOTTOM" STYLE="border-top:solid black 1.0pt; background:#EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>3,396</font></p> </td>
        <TD WIDTH="1.8%" VALIGN="BOTTOM" STYLE="border-top:solid black 1.0pt; background:#EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="41%" valign=top >
            <p style='margin-left:.25in;text-indent:-.25in;text-align:left;margin-top:1.0pt;margin-bottom: 0in'><font size=2>Due after one year through five years</font></p> </td>
        <td width="1%" valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <td width="1%" valign=bottom style='border-bottom: solid black 1.0pt; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td width="8%" valign=bottom style='border-bottom: solid black 1.0pt; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>7,253</font></p> </td>
        <td width="1%" valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <td width="1%" valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:1.0pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:1.0pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td width="1%" valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <td width="1%" valign=bottom style='border-bottom: solid black 1.0pt; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td width="8%" valign=bottom style='border-bottom: solid black 1.0pt; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>6,069</font></p> </td>
        <td width="1%" valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <td width="1%" valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:1.0pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <td width="1%" valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <td width="1%" valign=bottom style='border-bottom: solid black 1.0pt; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td width="8%" valign=bottom style='border-bottom: solid black 1.0pt; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>11,755</font></p> </td>
        <td width="1%" valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <td width="1%" valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:1.0pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:1.0pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <td width="1%" valign=bottom style='border-bottom: solid black 1.0pt; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td width="8%" valign=bottom style='border-bottom: solid black 1.0pt; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>11,593</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:1.0pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="41%" valign=top style='background:#EAFFFF'>
            <p style='margin-left:.25in;text-indent:-.25in;text-align:left;margin-top:1.5pt;margin-bottom: 0in'><font size=2>&nbsp;</font></p> </td>
        <td width="1%" valign=bottom style='background:#EAFFFF; '>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <td width="1%" valign=bottom style='border-bottom: double black 2.25pt;background: #EAFFFF'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>$</font></p> </td>
        <td width="8%" valign=bottom style='border-bottom: double black 2.25pt;background: #EAFFFF'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>12,454</font></p> </td>
        <td width="1%" valign=bottom style='background:#EAFFFF; '>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <td width="1%" valign=bottom style='background:#EAFFFF; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:1.5pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:1.5pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td width="1%" valign=bottom style='background:#EAFFFF; '>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <td width="1%" valign=bottom style='border-bottom: double black 2.25pt;background: #EAFFFF'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>$</font></p> </td>
        <td width="8%" valign=bottom style='border-bottom: double black 2.25pt;background: #EAFFFF'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>11,201</font></p> </td>
        <td width="1%" valign=bottom style='background:#EAFFFF; '>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <td width="1%" valign=bottom style='background:#EAFFFF; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:1.5pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF;">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <td width="1%" valign=bottom style='background:#EAFFFF; '>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <td width="1%" valign=bottom style='border-bottom: double black 2.25pt;background: #EAFFFF'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>$</font></p> </td>
        <td width="8%" valign=bottom style='border-bottom: double black 2.25pt;background: #EAFFFF'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>15,156</font></p> </td>
        <td width="1%" valign=bottom style='background:#EAFFFF; '>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <td width="1%" valign=bottom style='background:#EAFFFF; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:1.5pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:1.5pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <td width="1%" valign=bottom style='border-bottom: double black 2.25pt;background: #EAFFFF'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>$</font></p> </td>
        <td width="8%" valign=bottom style='border-bottom: double black 2.25pt;background: #EAFFFF'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>14,989</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:1.5pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td> </tr></table>
</div>

<p style=' margin-bottom:18pt; margin-top:18pt;text-align:justify;'><i><font size=2>Long-Term Investments</font></i></p>


<div align=left>

<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="98%" STYLE="margin-left:0pt;border-collapse:collapse">
    <tr style='page-break-inside:avoid'>
        <TD VALIGN="TOP">
            <p style='margin-left:15.65pt;text-indent:-.2in;text-align:center;margin-top:1.0pt;margin-bottom:0in'><font size=2>&nbsp;</font></p> </td>
        <td colspan="5" >
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2.0pt;margin-bottom:0pt'><font size=2>Amortized</font></p> </td>
        <TD>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:1.0pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td colspan="10" >
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt'><font size=2>Gross Unrealized</font></p> </td>
        <TD>
            <p style='margin-left:0in;text-indent:0pt;text-align:center;margin-top:1.0pt;margin-bottom:0in'><font size=2>&nbsp;</font></p> </td>
        <td colspan="5" >
            <p style='margin-left:0in;text-indent:0pt;text-align:center;margin-top:2.0pt;margin-bottom:0in'><font size=2>Estimated</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <TD VALIGN="TOP">
            <p style='margin-left:15.65pt;text-indent:-.2in;text-align:center;margin-top:1.0pt;margin-bottom:0in'><font size=2>&nbsp;</font></p> </td>
        <td width="2%" valign=top >
            <p style='margin-left:0in;text-indent:0pt;text-align:center;margin-top:1.0pt;margin-bottom:0in'><font size=2>&nbsp;</font></p> </td>
        <td colspan="3" valign=top style=' border-bottom:solid black 1.0pt; '>
            <p style='margin:0in;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:.0001pt'><font size=2>Cost</font></p> </td>
        <td width="2%" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:1.0pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="top">
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:1.0pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td width="2%" valign=top >
            <p style='margin-left:0in;text-indent:0pt;text-align:center;margin-top:1.0pt;margin-bottom:0in'><font size=2>&nbsp;</font></p> </td>
        <td colspan="3" valign=top style='border-left:none;border-bottom:solid black 1.0pt;border-right:none;  '>
            <p style='margin:0in;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:.0pt'><font size=2>Gains</font></p> </td>
        <td width="2%" valign=top >
            <p style='margin-left:0in;text-indent:0pt;text-align:center;margin-top:1.0pt;margin-bottom:0in'><font size=2>&nbsp;</font></p> </td>
        <td width="2%" valign=top >
            <p style='margin-left:0in;text-indent:0pt;text-align:center;margin-top:1.0pt;margin-bottom:0in'><font size=2>&nbsp;</font></p> </td>
        <td colspan="3" valign=top style='border-left:none;border-bottom:solid black 1.0pt;border-right:none;  '>
            <p style='margin:0in;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:.0pt'><font size=2>(Losses)</font></p> </td>
        <td width="2%" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:1.0pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="top">
            <p style='margin-left:0in;text-indent:0pt;text-align:center;margin-top:1.0pt;margin-bottom:0in'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="TOP" >
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:1.0pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td colspan="3" valign=top style=' border-bottom:solid black 1.0pt; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0in;margin-bottom:0pt'><font size=2>Fair Value</font></p> </td>
        <td width="1%" valign=top >
            <p style='margin-left:0in;text-indent:0pt;text-align:center;margin-top:1.0pt;margin-bottom:0in'><font size=2>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <TD WIDTH="32%" VALIGN="TOP" STYLE="background:#EAFFFF">
            <p style='margin-left:15.65pt;text-indent:-.2in;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>September&nbsp;30, 2008</font></p> </td>
        <TD WIDTH="2%" VALIGN="bottom" STYLE="background:#EAFFFF;">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD WIDTH="1%" VALIGN="BOTTOM" STYLE="background:#EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD WIDTH="8%" VALIGN="BOTTOM" STYLE="border-top:solid black 1.0pt; background:#EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD WIDTH="1%" VALIGN="BOTTOM" STYLE="border-top:solid black 1.0pt; background:#EAFFFF">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD WIDTH="2%" VALIGN="TOP" STYLE="background:#EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD WIDTH="4.5%" VALIGN="bottom" STYLE="background:#EAFFFF;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD WIDTH="2%" VALIGN="bottom" STYLE="background:#EAFFFF">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD WIDTH="1%" VALIGN="BOTTOM" STYLE="background:#EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD WIDTH="6%" VALIGN="BOTTOM" STYLE="border-top:solid black 1.0pt; background:#EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD WIDTH="1%" VALIGN="TOP" STYLE="border-top:solid black 1.0pt; background:#EAFFFF">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD WIDTH="2%" VALIGN="TOP" STYLE="background:#EAFFFF">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD WIDTH="2%" VALIGN="bottom" STYLE="background:#EAFFFF;">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD WIDTH="1%" VALIGN="BOTTOM" STYLE="background:#EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD WIDTH="8%" VALIGN="BOTTOM" STYLE="border-top:solid black 1.0pt; background:#EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD WIDTH="1%" VALIGN="BOTTOM" STYLE="border-top:solid black 1.0pt; background:#EAFFFF">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD WIDTH="2%" VALIGN="bottom" STYLE="background:#EAFFFF;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD WIDTH="4.5%" VALIGN="bottom" STYLE="background:#EAFFFF;">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD WIDTH="1%" VALIGN="TOP" STYLE="background:#EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD WIDTH="1%" VALIGN="BOTTOM" STYLE="background:#EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD WIDTH="8%" VALIGN="BOTTOM" STYLE="background:#EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD WIDTH="1%" VALIGN="BOTTOM" STYLE="background:#EAFFFF">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD WIDTH="1%" VALIGN="bottom" STYLE="background:#EAFFFF;">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <TD VALIGN="TOP">
            <p style='margin-left:.1in;text-indent:.05in;text-align:left;margin-top:1.5pt;margin-bottom: 0in'><font size=2>Auction Rate Certificates*</font></p> </td>
        <td width="2%" valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: double black 2.25pt;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>$</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: double black 2.25pt;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>34,300</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <td width="2%" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:1.5pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="bottom">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:1.5pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td width="2%" valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: double black 2.25pt;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>$</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: double black 2.25pt;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt'><font size=2>&#151;</font></p> </td>
        <TD VALIGN="TOP">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <td width="2%" valign=top >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <td width="2%" valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: double black 2.25pt;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>$</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: double black 2.25pt;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>( 2,849</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: double white 2.25pt;">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>)</font></p> </td>
        <td width="2%" valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:1.5pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="bottom">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="TOP">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: double black 2.25pt;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>$</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: double black 2.25pt;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>31,451</font></p> </td>
        <td width="1%" valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <td width="1%" valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <TD VALIGN="TOP">
            <p style='margin-left:.25in;text-indent:-.25in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td width="2%" valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td width="2%" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="bottom">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td width="2%" valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="TOP">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td width="2%" valign=top >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td width="2%" valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td width="2%" valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="bottom">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="TOP">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td width="1%" valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td width="1%" valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td> </tr>

    <tr style='page-break-inside:avoid'>
        <TD VALIGN="TOP" STYLE="background:#EAFFFF">
            <p style='margin-left:15.65pt;text-indent:-.2in;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>June&nbsp;30, 2008</font></p> </td>
        <td width="2%" valign=bottom style='background:#EAFFFF; '>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td width="2%" valign=top style='background:#EAFFFF'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="bottom" STYLE="background:#EAFFFF;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td width="2%" valign=bottom style='background:#EAFFFF'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="TOP" STYLE="background:#EAFFFF">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td width="2%" valign=top style='background:#EAFFFF'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td width="2%" valign=bottom style='background:#EAFFFF; '>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td width="2%" valign=bottom style='background:#EAFFFF; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="bottom" STYLE="background:#EAFFFF;">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="TOP" STYLE="background:#EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td width="1%" valign=bottom style='background:#EAFFFF; '>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td width="1%" valign=bottom style='background:#EAFFFF; '>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <TD VALIGN="TOP">
            <p style='margin-left:.1in;text-indent:.05in;text-align:left;margin-top:1.5pt;margin-bottom: 0in'><font size=2>Auction Rate Certificates*</font></p> </td>
        <td width="2%" valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: double black 2.25pt;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>$</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: double black 2.25pt;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>34,300</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <td width="2%" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:1.5pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="bottom">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:1.5pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td width="2%" valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: double black 2.25pt;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>$</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: double black 2.25pt;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt'><font size=2>&#151;</font></p> </td>
        <TD VALIGN="TOP">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <td width="2%" valign=top >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <td width="2%" valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: double black 2.25pt;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>$</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: double black 2.25pt;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>(2,023 </font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: double white 2.25pt;">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>)</font></p> </td>
        <td width="2%" valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:1.5pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="bottom">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="TOP">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: double black 2.25pt;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>$</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: double black 2.25pt;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>32,277</font></p> </td>
        <td width="1%" valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <td width="1%" valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td> </tr></table>
</div>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.19in;text-align:justify;'><u><font 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></u><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:18pt; margin-top:1pt; margin-left:0.19in;text-align:justify;'><font size=2>*&nbsp;&nbsp;Auction rate certificates mature in more than five years with interest rates resetting monthly.</font></p>

<p style=' margin-bottom:18pt; margin-top:0pt;text-align:justify;'><i><font size=2>Auction Rate Certificates </font></i></p>

<p style=' margin-bottom:18pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>Auction Rate Certificates (ARCs) represent securities with fixed maturity dates the interest rates of which reset monthly. Our ARCs are Student Loan Asset-Backed Securities by the Federal Family Education Loan Program. The payments of principal and interest on these student loans are guaranteed by the state or not-for-profit-guaranty agency and the U.S. Department of Education. At the time of our initial investment and through the date of this filing, all of our ARCs are rated as AAA.</font></p>

<p style=' margin-bottom:18pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>At September&nbsp;30, 2008, the Company&#146;s investment advisor has valued these securities using their pricing model which is not a market model, but which does reflect some discount due to the current lack of liquidity of the investments as a result of recently failed auctions. This valuation results in an unrealized loss of $2,849 as of September&nbsp;30, 2008.</font></p>

<p style=' margin-bottom:18pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>The Company believes this to be a temporary impairment and intends to hold these securities until the market for these securities recovers, or until maturity, and has recorded this amount in accumulated other comprehensive income (loss) on the balance sheet.</font></p>

<p style=' margin-bottom:18pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>Due to the recent temporary liquidity problems experienced with these securities, they have been reclassified as Long-Term Investments.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>10</font></p>
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<a href="#toc-main"><font size="2"><font face="Times New Roman, Times, Serif" size="1"><u><i>Table of Contents</i></u></font></font></a>
<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

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


<p style=' margin-bottom:12pt; margin-top:0pt;text-align:center;'><font size=2>ENERGY CONVERSION DEVICES, INC. and SUBSIDIARIES</font></p>

<p style=' margin-bottom:18pt; margin-top:0pt;text-align:center;'><font size=2>Notes to Consolidated Financial Statements</font></p>

<p style=' margin-bottom:18pt; margin-top:0pt;text-align:left;'><u><font size=2>Note C &#151; Inventories</font></u></p>

<p style=' margin-bottom:18pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>Inventories of raw materials, work in process and finished goods for the manufacture of solar cells and nickel hydroxide are valued at the lower of cost (first in, first out) or market. Cost elements included in inventory are materials, direct labor and manufacturing overhead.</font></p>

<p style=' margin-bottom:18pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>Inventories (substantially all for United Solar) are as follows:</font></p>


<div align=left>

<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="90%" STYLE="margin-left:0pt;border-collapse:collapse">
    <tr style='page-break-inside:avoid'>
        <td width="47%" valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td colspan="4" valign=top >
            <p style='margin-left:0in;text-indent:0pt;text-align: center;margin-top:2pt;margin-bottom:0pt'><font size=2>September&nbsp;30,</font></p> </td>
        <td width="7%" valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td colspan="4" valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align: center;margin-top:2pt;margin-bottom:0pt'><font size=2>June 30,</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="47%" valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:1.0pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td colspan="4" valign=top style=' border-bottom:solid black 1.0pt; '>
            <p style='margin-left:0in;text-indent:0pt;text-align: center;margin-top:2pt;margin-bottom:0pt'><font size=2>2008</font></p> </td>
        <td width="7%" valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <td colspan="4" valign=bottom style=' border-bottom:solid black 1.0pt; '>
            <p style='margin-left:0in;text-indent:0pt;text-align: center;margin-top:2pt;margin-bottom:0pt'><font size=2>2008</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <TD WIDTH="47%" VALIGN="top" STYLE="background:#EAFFFF">
            <p style='margin-left:.5in;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>Finished products</font></p> </td>
        <TD WIDTH="3.2%" VALIGN="TOP" STYLE="background:#EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD WIDTH="1%" VALIGN="BOTTOM" STYLE="border-top:solid black 1.0pt; background:#EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>$</font></p> </td>
        <TD WIDTH="10%" VALIGN="BOTTOM" STYLE="border-top: solid black 1.0pt;background: #EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>5,900</font></p> </td>
        <TD WIDTH="3.8%" VALIGN="BOTTOM" STYLE="border-top:solid black 1.0pt; background:#EAFFFF">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD WIDTH="7%" VALIGN="BOTTOM" STYLE="background:#EAFFFF;">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD WIDTH="3.2%" VALIGN="BOTTOM" STYLE="background:#EAFFFF">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD WIDTH="1%" VALIGN="BOTTOM" STYLE="border-top:solid black 1.0pt; background:#EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>$</font></p> </td>
        <TD WIDTH="10%" VALIGN="BOTTOM" STYLE="border-top: solid black 1.0pt;background: #EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>3,893</font></p> </td>
        <TD WIDTH="3.8%" VALIGN="BOTTOM" STYLE="border-top:solid black 1.0pt; background:#EAFFFF">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="47%" valign=top >
            <p style='margin-left:.5in;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>Work in process</font></p> </td>
        <TD VALIGN="TOP">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>15,552</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td width="7%" valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>15,414</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="47%" valign=top style='background:#EAFFFF'>
            <p style='margin-left:.5in;text-align:left;margin-top:1.0pt;margin-bottom: 0in'><font size=2>Raw materials</font></p> </td>
        <TD VALIGN="TOP" STYLE="background:#EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:1.0pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: solid black 1.0pt; background:#EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: solid black 1.0pt; background:#EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>12,890</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <td width="7%" valign=bottom style='background:#EAFFFF; '>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF;">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: solid black 1.0pt; background:#EAFFFF">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: solid black 1.0pt; background:#EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>12,030</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF;">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="47%" valign=top >
            <p style='margin-left:.25in;text-indent:-.25in;text-align:left;margin-top:1.5pt;margin-bottom: 0in'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="TOP">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: double black 2.25pt;background: white">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>$</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: double black 2.25pt;background: white">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>34,342</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <td width="7%" valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: double black 2.25pt;background: white">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>$</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: double black 2.25pt;background: white">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>31,337</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td> </tr></table>
</div>

<p style=' margin-bottom:18pt; margin-top:18pt; text-indent:0.5in;text-align:justify;'><font size=2>The above amounts include an allowance for obsolescence of $6,244 and $4,789 as of September&nbsp;30, 2008 and June 30, 2008, respectively.</font></p>

<p style=' margin-bottom:18pt; margin-top:0pt;text-align:left;'><u><font size=2>Note D &#151; Liabilities</font></u></p>

<p style=' margin-bottom:18pt; margin-top:0pt;text-align:left;'><u><font size=2>Warranty Liability</font></u></p>

<p style=' margin-bottom:18pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>The following is a summary of the changes in the product warranty liability during the three months ended September&nbsp;30, 2008 and 2007:</font></p>

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


<div align=left>

<TABLE BORDER="0" CELLSPACING="0" CELLPADDING="0" WIDTH="90%" STYLE="margin-left:0pt;border-collapse:collapse">
    <tr style='page-break-inside:avoid'>
        <td width="63%" valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td colspan="5" valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt'><font size=2>Three Months Ended</font><br> <font size=2>September&nbsp;30,</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="63%" valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:1.0pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td colspan="2" valign=bottom style=' border-bottom:solid black 1.0pt; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt'><font size=2>2008</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <td colspan="2" valign=bottom style=' border-bottom:solid black 1.0pt; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt'><font size=2>2007</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <TD WIDTH="63%" VALIGN="top" STYLE="background:#EAFFFF">
            <p style='margin-left:.5in;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>Liability at beginning of the period</font></p> </td>
        <TD WIDTH="1%" VALIGN="BOTTOM" STYLE="background:#EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>$</font></p> </td>
        <TD WIDTH="11%" VALIGN="BOTTOM" STYLE="border-top: solid black 1.0pt;background: #EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>1,499</font></p> </td>
        <TD WIDTH="7%" VALIGN="BOTTOM" STYLE="background:#EAFFFF;">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD WIDTH="1%" VALIGN="BOTTOM" STYLE="background:#EAFFFF;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>$</font></p> </td>
        <TD WIDTH="11%" VALIGN="BOTTOM" STYLE="background:#EAFFFF;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>1,325</font></p> </td>
        <TD WIDTH="1%" VALIGN="BOTTOM" STYLE="background:#EAFFFF;">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="63%" valign=top >
            <p style='margin-left:48pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>Amounts accrued for as warranty costs</font></p> </td>
        <td width="1%" valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>34</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td width="1%" valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td width="11%" valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>418</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="63%" valign=top style='background:#EAFFFF'>
            <p style='margin-left:48pt;text-align:left;margin-top:1.0pt;margin-bottom: 0in'><font size=2>Warranty claims</font></p> </td>
        <td width="1%" valign=bottom style='border-bottom: solid black 1.0pt; background:#EAFFFF'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: solid black 1.0pt; background:#EAFFFF">
            <p style='margin-left:0pt;text-indent:2.25pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>(36</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF;">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>)</font></p> </td>
        <td width="1%" valign=bottom style='border-bottom: solid black 1.0pt; background:#EAFFFF'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td width="11%" valign=bottom style='border-bottom: solid black 1.0pt; background:#EAFFFF'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>(160</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF;">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>)</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="63%" valign=top >
            <p style='margin-left:.5in;text-align:left;margin-top:1.5pt;margin-bottom: 0in'><font size=2>Liability at end of period</font></p> </td>
        <td width="1%" valign=bottom style='border-bottom: double black 2.25pt;background: white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>$</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: double black 2.25pt;background: white">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>1,497</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <td width="1%" valign=bottom style='border-bottom: double black 2.25pt;background: white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>$</font></p> </td>
        <td width="11%" valign=bottom style='border-bottom: double black 2.25pt;background: white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>1,583</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td> </tr></table>
</div>

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


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>11</font></p>
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<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>
<PAGE>
<hr align="center" width="99%" noshade size="2">
<div style="PAGE-BREAK-AFTER: always">&nbsp;</div>
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<a href="#toc-main"><font size="2"><font face="Times New Roman, Times, Serif" size="1"><u><i>Table of Contents</i></u></font></font></a>
<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

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

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:center;'><font size=2>ENERGY CONVERSION DEVICES, INC. and SUBSIDIARIES</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:center;'><font size=2>Notes to Consolidated Financial Statements</font></p>

<p style=' margin-bottom:18pt; margin-top:0pt;text-align:left;'><u><font size=2>Note D &#151; Liabilities (Continued)</font></u></p>

<p style=' margin-bottom:18pt; margin-top:0pt;text-align:left;'><u><font size=2>Other Long-Term Liabilities</font></u></p>

<p style=' margin-bottom:18pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>A summary of the Company&#146;s other long-term liabilities is as follows:</font></p>


<div align=left>

<TABLE BORDER="0" CELLSPACING="0" CELLPADDING="0" WIDTH="90%" STYLE="margin-left:0pt;border-collapse:collapse">
    <tr style='page-break-inside:avoid'>
        <td width="52%" valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td colspan="4" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt'><font size=2>September&nbsp;30,</font></p> </td>
        <td width="7%" valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td colspan="4" valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align: center;margin-top:2pt;margin-bottom:0pt'><font size=2>June 30,</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="52%" valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:1.0pt;margin-bottom:2pt'><font size=2>&nbsp;</font></p> </td>
        <td colspan="4" valign=top style=' border-bottom:solid black 1.0pt; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:2pt'><font size=2>2008</font></p> </td>
        <td width="7%" valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:2pt'><font size=2>&nbsp;</font></p> </td>
        <td colspan="4" valign=bottom style=' border-bottom:solid black 1.0pt; '>
            <p style='margin-left:0in;text-indent:0pt;text-align: center;margin-top:2pt;margin-bottom:2pt'><font size=2>2008</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <TD WIDTH="52%" VALIGN="top" STYLE="background:#EAFFFF">
            <p style='margin-left:.25in;text-indent: -.25in;text-align:justify;margin-top:2pt;margin-bottom:0pt'><font size=2>Capital leases</font></p> </td>
        <TD WIDTH="3%" VALIGN="TOP" STYLE="background:#EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD WIDTH="1%" VALIGN="BOTTOM" STYLE="border-top:solid black 1.0pt; background:#EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>$</font></p> </td>
        <TD WIDTH="10%" VALIGN="BOTTOM" STYLE="border-top: solid black 1.0pt;background: #EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>23,275</font></p> </td>
        <TD WIDTH="3%" VALIGN="BOTTOM" STYLE="border-top:solid black 1.0pt; background:#EAFFFF">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD WIDTH="7%" VALIGN="BOTTOM" STYLE="background:#EAFFFF;">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD WIDTH="2%" VALIGN="BOTTOM" STYLE="background:#EAFFFF">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD WIDTH="1%" VALIGN="BOTTOM" STYLE="border-top:solid black 1.0pt; background:#EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>$</font></p> </td>
        <TD WIDTH="10%" VALIGN="BOTTOM" STYLE="border-top:solid black 1.0pt; background:#EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>23,508</font></p> </td>
        <TD WIDTH="3%" VALIGN="BOTTOM" STYLE="border-top:solid black 1.0pt; background:#EAFFFF">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="52%" valign=top >
            <p style='margin-left:.25in;text-indent: -.25in;text-align:justify;margin-top:2pt;margin-bottom:0pt'><font size=2>Long-term retirement</font></p> </td>
        <td width="3%" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>2,272</font></p> </td>
        <td width="3%" valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td width="7%" valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td width="2%" valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td width="1%" valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>2,316</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="52%" valign=top style='background:#EAFFFF'>
            <p style='margin-left:.25in;text-indent: -.25in;text-align:justify;margin-top:2pt;margin-bottom:0pt'><font size=2>Customer deposits</font></p> </td>
        <td width="3%" valign=top style='background:#EAFFFF'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>3,600</font></p> </td>
        <td width="3%" valign=bottom style='background:#EAFFFF; '>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td width="7%" valign=bottom style='background:#EAFFFF; '>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td width="2%" valign=bottom style='background:#EAFFFF; '>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td width="1%" valign=bottom style='background:#EAFFFF; '>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>680</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF;">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="52%" valign=top >
            <p style='margin-left:.25in;text-indent: -.25in;text-align:justify;margin-top:2pt;margin-bottom:0pt'><font size=2>Deferred revenue</font></p> </td>
        <td width="3%" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>3,199</font></p> </td>
        <td width="3%" valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td width="7%" valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td width="2%" valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td width="1%" valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>309</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="52%" valign=top style='background:#EAFFFF'>
            <p style='margin-left:.25in;text-indent: -.25in;text-align:justify;margin-top:2pt;margin-bottom:0pt'><font size=2>Deferred patent license fees</font></p> </td>
        <td width="3%" valign=top style='background:#EAFFFF'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>5,952</font></p> </td>
        <td width="3%" valign=bottom style='background:#EAFFFF; '>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td width="7%" valign=bottom style='background:#EAFFFF; '>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td width="2%" valign=bottom style='background:#EAFFFF; '>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td width="1%" valign=bottom style='background:#EAFFFF; '>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>6,190</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF;">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="52%" valign=top >
            <p style='margin-left:.25in;text-indent: -.25in;text-align:justify;margin-top:1.0pt;margin-bottom: 0in'><font size=2>Other</font></p> </td>
        <td width="3%" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:1.0pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: solid black 1.0pt;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: solid black 1.0pt;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>974</font></p> </td>
        <td width="3%" valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <td width="7%" valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <td width="2%" valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <td width="1%" valign=bottom style='border-bottom: solid black 1.0pt; '>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: solid black 1.0pt;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>935</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="52%" valign=top style='background:#EAFFFF'>
            <p style='margin-left:.25in;text-indent: -.25in;text-align:justify;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td width="3%" valign=top style='background:#EAFFFF'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>39,272</font></p> </td>
        <td width="3%" valign=bottom style='background:#EAFFFF; '>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td width="7%" valign=bottom style='background:#EAFFFF; '>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td width="2%" valign=bottom style='background:#EAFFFF; '>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td width="1%" valign=bottom style='background:#EAFFFF'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>33,938</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF;">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="52%" valign=top >
            <p style='margin-left:.25in;text-indent: -.25in;text-align:justify;margin-top:1.0pt;margin-bottom: 0in'><font size=2>Less amounts included in current liabilities</font></p> </td>
        <td width="3%" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:1.0pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: solid black 1.0pt;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: solid black 1.0pt;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>5,524</font></p> </td>
        <td width="3%" valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <td width="7%" valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <td width="2%" valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <td width="1%" valign=bottom style='border-bottom: solid black 1.0pt; '>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: solid black 1.0pt;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>2,650</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="52%" valign=top style='background:#EAFFFF'>
            <p style='margin-left:52.55pt;text-indent: -.25in;text-align:justify;margin-top:1.5pt;margin-bottom: 0in'><font size=2>Total Other Long-Term Liabilities</font></p> </td>
        <td width="3%" valign=top style='background:#EAFFFF'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: double black 2.25pt;background: #EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>$</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: double black 2.25pt;background: #EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>33,748</font></p> </td>
        <td width="3%" valign=bottom style='background:#EAFFFF; '>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <td width="7%" valign=bottom style='background:#EAFFFF; '>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <td width="2%" valign=bottom style='background:#EAFFFF; '>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <td width="1%" valign=bottom style='border-bottom: double black 2.25pt;background: #EAFFFF'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>$</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: double black 2.25pt;background: #EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>31,288</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF;">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td> </tr></table>
</div>

<p style=' margin-bottom:18pt; margin-top:18pt;text-align:left;'><u><font size=2>NOTE E &#151; Derivative Financial Instruments</font></u></p>

<p style=' margin-bottom:18pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>Our primary exposure to foreign currency risk is forecasted transactions denominated in yen. Beginning in June 2008, ECD entered into several forward contracts to mitigate the risks associated with changes in exchange rates between the dollar and the yen. Our sole exposure to foreign currency changes is for commitments to purchase equipment from a supplier located in Japan. We use forward contracts exclusively to hedge forecasted transactions. We do not use forward contracts for speculative purposes. We recognize the effective portion of the changes in fair value of forward contracts as a component of accumulated other comprehensive income (loss). The ineffective portion is recorded in earnings. </font></p>

<p style=' margin-bottom:18pt; margin-top:0pt;text-align:left;'><u><font size=2>Note F &#151; Convertible Senior Notes</font></u></p>

<p style=' margin-bottom:18pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>In June 2008, the Company completed an offering of $316,250 of 3.00% Convertible Senior Notes. Proceeds to the Company were $306,762, net of debt issuance costs of $9,488. An additional $1,258 of debt issuance costs were also incurred and paid directly by the Company. All debt issuance costs are being amortized over the life of the Convertible Senior Notes using the interest method. Amortization expense for the three months ended September&nbsp;30, 2008 was $551. Unamortized debt issuance costs were $10,174 at September&nbsp;30, 2008.</font></p>

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>12</font></p>
<!-- EEDocs PBStart-->
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<a href="#toc-main"><font size="2"><font face="Times New Roman, Times, Serif" size="1"><u><i>Table of Contents</i></u></font></font></a>
<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

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

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:center;'><font size=2>ENERGY CONVERSION DEVICES, INC. and SUBSIDIARIES</font></p>

<p style=' margin-bottom:18pt; margin-top:0pt;text-align:center;'><font size=2>Notes to Consolidated Financial Statements</font></p>

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


<p style=' margin-bottom:18pt; margin-top:0pt;text-align:left;'><font size=2><u>Note G &#151; Commitments and Contingencies</u></font></p>

<p style=' margin-bottom:18pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>The Company enters into purchase commitments for capital equipment. As of September&nbsp;30, 2008, the Company had purchase commitments of approximately $69,381 related to its previously announced goal of expanding United Solar&#146;s manufacturing capacity to 420MW by 2010, 720MW by 2011 and 1GW by 2012. </font></p>

<p style=' margin-bottom:18pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>The Company presently intends to fund this additional expansion through existing funds and cash from operations.</font></p>

<p style=' margin-bottom:18pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>In September 2008, the Company finalized a joint venture agreement with Tianjin Jinneng Investment Company. As of September&nbsp;30, 2008, the Company has contributed $1,000 to the joint venture and is required to contribute $1,500 in the form of a royalty-free grant of technology.</font></p>

<p style=' margin-bottom:18pt; margin-top:0pt;text-align:left;'><font size=2><u>Note H &#151; Stock-Based Compensation</u></font></p>

<p style=' margin-bottom:18pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>The Company has common stock reserved for issuance as follows:</font></p>


<div align=left>

<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="98%" STYLE="border-collapse:collapse">
    <tr style='page-break-inside:avoid'>
        <td width="58%" valign=top >
            <p style='margin-left:.25in;text-indent:-.25in;text-align:left;margin-top:1.0pt;margin-bottom: 1.0pt'><font size=2>&nbsp;</font></p> </td>
        <td colspan="11" valign=bottom style=' border-bottom:solid black 1.0pt; '>
            <p style='margin-left:0in;text-indent:0pt;text-align:center;margin-top:2.0pt;margin-bottom:1.0pt'><font size=2>Number of Shares</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="58%" valign=top >
            <p style='margin-left:.25in;text-indent:-.25in;text-align:left;margin-top:1.0pt;margin-bottom: 0in'><font size=2>&nbsp;</font></p> </td>
        <td colspan="5" valign=bottom style=' border-bottom:solid black 1.0pt;  '>
            <p style='margin-left:0in;text-indent:0pt;text-align: center;margin-top:2pt;margin-bottom:0pt'><font size=2>September&nbsp;30, 2008</font></p> </td>
        <TD VALIGN="TOP">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0in'><font size=2>&nbsp;</font></p> </td>
        <td colspan="5" valign=bottom style='border-top:solid black 1.0pt; border-left:none;border-bottom:solid black 1.0pt;border-right:none;  '>
            <p style='margin-left:0in;text-indent:0pt;text-align: center;margin-top:2pt;margin-bottom:0pt'><font size=2>June 30, 2008</font></p> </td> </tr>

    <tr style='page-break-inside:avoid'>
        <TD WIDTH="58%" VALIGN="TOP" STYLE="background:#EAFFFF">
            <p style='margin-left:.5in;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>Stock options</font></p> </td>
        <TD WIDTH="2%" VALIGN="BOTTOM" STYLE="background:#EAFFFF">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD WIDTH="2%" VALIGN="BOTTOM" STYLE="border-top:solid black 1.0pt; background:#EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD WIDTH="10%" VALIGN="BOTTOM" STYLE="border-top:solid black 1.0pt; background:#EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>1,527,402 </font></p> </td>
        <TD WIDTH="2%" VALIGN="TOP" STYLE="border-top:solid black 1.0pt; background:#EAFFFF">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD WIDTH="2%" VALIGN="TOP" STYLE="border-top:solid black 1.0pt; background:#EAFFFF">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD WIDTH="6%" VALIGN="TOP" STYLE="background:#EAFFFF">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD WIDTH="2%" VALIGN="BOTTOM" STYLE="background:#EAFFFF">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD WIDTH="1%" VALIGN="BOTTOM" STYLE="border-top:solid black 1.0pt; background:#EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD WIDTH="10%" VALIGN="BOTTOM" STYLE="border-top: solid black 1.0pt;background: #EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>1,692,968</font></p> </td>
        <TD WIDTH="2%" VALIGN="BOTTOM" STYLE="border-top:solid black 1.0pt; background:#EAFFFF">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD WIDTH="1%" VALIGN="TOP" STYLE="border-top:solid black 1.0pt; background:#EAFFFF">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="58%" valign=top >
            <p style='margin-left:.5in;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>Warrants </font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>400,000</font></p> </td>
        <TD VALIGN="TOP">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="TOP">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="TOP">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td width="1%" valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td width="10%" valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>400,000</font></p> </td>
        <td width="2%" valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td width="1%" valign=top >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="58%" valign=top style='background:#EAFFFF'>
            <p style='margin-left:.5in;text-align:left;margin-top:1.0pt;margin-bottom: 0in'><font size=2>Convertible Investment Certificates</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF;">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: solid black 1.0pt; background:#EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>5,210</font></p> </td>
        <TD VALIGN="TOP" STYLE="background:#EAFFFF">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="TOP" STYLE="background:#EAFFFF">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="TOP" STYLE="background:#EAFFFF">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <td width="1%" valign=bottom style='background:#EAFFFF'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td width="10%" valign=bottom style='border-bottom: solid black 1.0pt; background:#EAFFFF'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>5,210</font></p> </td>
        <td width="2%" valign=bottom style='background:#EAFFFF; '>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <td width="1%" valign=top style='background:#EAFFFF'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="58%" valign=top >
            <p style='margin-left:77pt;text-align:left;margin-top:1.5pt;margin-bottom: 0in'><font SIZE=2>TOTAL RESERVED SHARES</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: double black 2.25pt;background: white">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>1,932,612</font></p> </td>
        <TD VALIGN="TOP">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="TOP">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="TOP">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <td width="1%" valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td width="10%" valign=bottom style='border-bottom: double black 2.25pt;background: white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>2,098,178</font></p> </td>
        <td width="2%" valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <td width="1%" valign=top >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td> </tr></table>
</div>

<p style=' margin-bottom:18pt; margin-top:18pt; text-indent:0.5in;text-align:justify;'><font size=2>The Company records the fair value of stock-based compensation grants as an expense. In order to determine the fair value of stock options on the date of grant, the Company applies the Black-Scholes option-pricing model. Inherent in this model are assumptions related to expected stock-price volatility, option life, risk-free interest rate and dividend yield. While the risk-free interest rate and dividend yield are less subjective assumptions, typically based on factual data derived from public sources, the expected stock-price volatility and option life assumptions require a greater level of judgment.</font></p>

<p style=' margin-bottom:18pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>The weighted average fair value of the options granted during the quarters ended September&nbsp;30, 2008 and 2007 is estimated based on the date of grant using the Black-Scholes option-pricing model with the following assumptions:</font></p>

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>13</font></p>
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<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"><FONT face="Times New Roman, Times, Serif" size=2></FONT>&nbsp;</P>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>
<PAGE>
<hr align="center" width="99%" noshade size="2">
<div style="PAGE-BREAK-AFTER: always">&nbsp;</div>
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<a href="#toc-main"><font size="2"><font face="Times New Roman, Times, Serif" size="1"><u><i>Table of Contents</i></u></font></font></a>
<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

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

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:center;'><font size=2>ENERGY CONVERSION DEVICES, INC. and SUBSIDIARIES</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:center;'><font size=2>Notes to Consolidated Financial Statements</font></p>

<p style=' margin-bottom:18pt; margin-top:0pt;text-align:justify;'><u><font size=2>Note H &#151; Stock-Based Compensation (Continued)</font></u></p>


<div align=left>

<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="80%" STYLE="border-collapse:collapse">
    <tr style='page-break-inside:avoid'>
        <TD WIDTH="53%" VALIGN="MIDDLE">
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:1.0pt;margin-bottom:0pt'><font size=2> </font></p> </td>
        <TD WIDTH="20%" STYLE="border-bottom:solid black 1.0pt;" VALIGN="MIDDLE">
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt'><font size=2>2008</font></p> </td>
        <TD WIDTH="7%" VALIGN="MIDDLE">
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:1.0pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD WIDTH="20%" STYLE="border-bottom:solid black 1.0pt;" VALIGN="MIDDLE">
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt'><font size=2>2007</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <TD VALIGN="MIDDLE" STYLE="background:#EAFFFF">
            <p style='margin-left:.5in;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>Dividend Yield </font></p> </td>
        <TD STYLE=" background:#EAFFFF" VALIGN="MIDDLE">
            <p style='margin-RIGHT:20pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>0&nbsp;%</font></p> </td>
        <TD STYLE="background:#EAFFFF" VALIGN="MIDDLE">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD STYLE=" background:#EAFFFF" VALIGN="MIDDLE">
            <p style='margin-RIGHT:20pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>0&nbsp;%</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <TD VALIGN="MIDDLE">
            <p style='margin-left:.5in;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>Volatility %</font></p> </td>
        <TD VALIGN="MIDDLE">
            <p style='margin-RIGHT:20pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>61.7&nbsp;%</font></p> </td>
        <TD VALIGN="MIDDLE">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="MIDDLE">
            <p style='margin-RIGHT:20pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>62.27&nbsp;%</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <TD VALIGN="MIDDLE" STYLE="background:#EAFFFF">
            <p style='margin-left:.5in;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>Risk-Free Interest Rate</font></p> </td>
        <TD STYLE="background:#EAFFFF" VALIGN="MIDDLE">
            <p style='margin-RIGHT:20pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>3.42&nbsp;%</font></p> </td>
        <TD STYLE="background:#EAFFFF" VALIGN="MIDDLE">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD STYLE="background:#EAFFFF" VALIGN="MIDDLE">
            <p style='margin-RIGHT:20pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>4.36&nbsp;%</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <TD VALIGN="MIDDLE">
            <p style='margin-left:.5in;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>Expected Life</font></p> </td>
        <TD VALIGN="MIDDLE">
            <p style='margin-RIGHT:20pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>6.88&nbsp;years</font></p> </td>
        <TD VALIGN="MIDDLE">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="MIDDLE">
            <p style='margin-RIGHT:20pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>6.39&nbsp;years</font></p> </td> </tr></table>
</div>

<p style=' margin-bottom:18pt; margin-top:18pt;text-align:justify;'><u><font size=2>Stock Options</font></u></p>

<p style=' margin-bottom:18pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>A summary of the transactions during the three months ended September&nbsp;30, 2008 with respect to the Company&#146;s 1995, 2000 and 2006 Plans follows:</font></p>


<div align=left>

<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="98%" STYLE="margin-left:2.9pt;border-collapse:collapse">
    <tr style='page-break-inside:avoid'>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:1.0pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td colspan="3" valign=bottom style=' border-bottom:solid black 1.0pt; '>
            <p style='margin-left:0in;text-indent:0pt;text-align: center;margin-top:2pt;margin-bottom:0pt'><font size=2>Shares</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:center;margin-top:1.0pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <td colspan="5" valign=bottom style=' border-bottom:solid black 1.0pt; '>
            <p style='margin-left:0in;text-indent:0pt;text-align: center;margin-top:2pt;margin-bottom:0pt'><font size=2>Weighted-Average Exercise Price</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <td colspan="5" valign=bottom style=' border-bottom:solid black 1.0pt; '>
            <p style='margin-left:0in;text-indent:0pt;text-align: center;margin-top:2pt;margin-bottom:0pt'><font size=2>Aggregate </font><br> <font size=2>Intrinsic&nbsp;Value&nbsp;<sup>(1)</sup></font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <TD WIDTH="41%" VALIGN="BOTTOM" STYLE="background:#EAFFFF">
            <p style='margin-left:.25in;text-indent:-.25in;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>Outstanding at June&nbsp;30, 2008</font></p> </td>
        <TD WIDTH="1%" VALIGN="BOTTOM" STYLE="background:#EAFFFF">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD WIDTH="8%" VALIGN="BOTTOM" STYLE="border-top:solid black 1.0pt; background:#EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>964,586</font></p> </td>
        <TD WIDTH="1%" VALIGN="BOTTOM" STYLE="border-top:solid black 1.0pt; background:#EAFFFF">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD WIDTH="7%" VALIGN="BOTTOM" STYLE="background:#EAFFFF;">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD WIDTH="4%" VALIGN="BOTTOM" STYLE="background:#EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD WIDTH="1%" VALIGN="BOTTOM" STYLE="border-top:solid black 1.0pt; background:#EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>$</font></p> </td>
        <TD WIDTH="7.5%" VALIGN="BOTTOM" STYLE="border-top:solid black 1.0pt; background:#EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>21.24</font></p> </td>
        <TD WIDTH="2%" VALIGN="BOTTOM" STYLE="border-top:solid black 1.0pt; background:#EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD WIDTH="3%" VALIGN="BOTTOM" STYLE="border-top:solid black 1.0pt; background:#EAFFFF">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD WIDTH="7%" VALIGN="BOTTOM" STYLE="background:#EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD WIDTH="3.2%" VALIGN="BOTTOM" STYLE="background:#EAFFFF">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD WIDTH="1%" VALIGN="BOTTOM" STYLE="border-top:solid black 1.0pt; background:#EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>$</font></p> </td>
        <TD WIDTH="8%" VALIGN="BOTTOM" STYLE="border-top:solid black 1.0pt; background:#EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>50,541</font></p> </td>
        <TD WIDTH="1%" VALIGN="BOTTOM" STYLE="border-top:solid black 1.0pt; background:#EAFFFF">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD WIDTH="3%" VALIGN="BOTTOM" STYLE="border-top:solid black 1.0pt; background:#EAFFFF">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:71.3pt;text-indent:-50.2pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>Granted</font></p> </td>
        <td width="1%" valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>62,670</font></p> </td>
        <td width="1%" valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td width="4%" valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td width="1%" valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>$</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>75.17</font></p> </td>
        <td width="2%" valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td width="8%" valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF">
            <p style='margin-left:71.3pt;text-indent:-50.2pt;text-align:left;margin-top:1.0pt;margin-bottom: 0in'><font size=2>Exercised</font></p> </td>
        <td width="1%" valign=bottom style='background:#EAFFFF; '>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: solid black 1.0pt; background:#EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>(94,566</font></p> </td>
        <td width="1%" valign=bottom style='border-bottom: solid #EAFFFF 1.0pt;background:#EAFFFF; '>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>)</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF;">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <td width="4%" valign=bottom style='background:#EAFFFF; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:1.0pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td width="1%" valign=bottom style='background:#EAFFFF'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font size=2>$</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:1.0pt;margin-bottom:0pt'><font size=2>12.74</font></p> </td>
        <td width="2%" valign=bottom style='background:#EAFFFF; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:1.0pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF;">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:1.0pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF;">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:1.0pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td width="8%" valign=bottom style='background:#EAFFFF; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:1.0pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF;">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF;">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:.25in;text-indent:-.25in;text-align:left;margin-top:1.5pt;margin-bottom: 0in'><font size=2>Outstanding at September&nbsp;30, 2008</font></p> </td>
        <td width="1%" valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: double black 2.25pt;background: white">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>932,690</font></p> </td>
        <td width="1%" valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <td width="4%" valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:1.5pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td width="1%" valign=bottom style='border-bottom: double black 2.25pt;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>$</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: double black 2.25pt;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>25.73</font></p> </td>
        <td width="2%" valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:1.5pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:1.5pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: double black 2.25pt;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>$</font></p> </td>
        <td width="8%" valign=bottom style='border-bottom: double black 2.25pt;'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>31,531</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF">
            <p style='margin-left:.25in;text-indent:-.25in;text-align:left;margin-top:1.5pt;margin-bottom: 0in'><font size=2>Exercisable at June 30, 2008</font></p> </td>
        <td width="1%" valign=bottom style='background:#EAFFFF; '>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: double black 2.25pt; background:#EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>801,110</font></p> </td>
        <td width="1%" valign=bottom style='background:#EAFFFF; '>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF;">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <td width="4%" valign=bottom style='background:#EAFFFF; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:1.5pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td width="1%" valign=bottom style='border-bottom: double black 2.25pt; background:#EAFFFF'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>$</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: double black 2.25pt; background:#EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>19.02</font></p> </td>
        <td width="2%" valign=bottom style='background:#EAFFFF; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:1.5pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF;">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:1.5pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF;">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: double black 2.25pt; background:#EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>$</font></p> </td>
        <td width="8%" valign=bottom style='border-bottom: double black 2.25pt; background:#EAFFFF'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>43,753</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF;">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF;">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:.25in;text-indent:-.25in;text-align:left;margin-top:1.5pt;margin-bottom: 0in'><font size=2>Exercisable at September&nbsp;30, 2008</font></p> </td>
        <td width="1%" valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: double black 2.25pt;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>739,544</font></p> </td>
        <td width="1%" valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <td width="4%" valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:1.5pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td width="1%" valign=bottom style='border-bottom: double black 2.25pt; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>$</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: double black 2.25pt;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>20.15</font></p> </td>
        <td width="2%" valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:1.5pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:1.5pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: double black 2.25pt;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>$</font></p> </td>
        <td width="8%" valign=bottom style='border-bottom: double black 2.25pt; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>28,178</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td> </tr></table>
</div>

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


<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="100%" style='margin-left:0pt;border-collapse:collapse'>
    <tr >
        <td width="29" valign=top style='padding:0in 0in .25in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(1)</font></p> </td>
        <td  valign=top style='padding:0in 0in .25in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>The intrinsic value of a stock option is the amount by which the current market value of the underlying stock exceeds the exercise price of the option.</font></p> </td> </tr></table>
</div>


<p style=' margin-bottom:18pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>The weighted average grant date fair value per option granted and the total intrinsic value of stock options exercised during the three months ended September&nbsp;30, 2008 and 2007 were as follows:</font></p>

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>14</font></p>
<!-- EEDocs PBStart-->
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<a href="#toc-main"><font size="2"><font face="Times New Roman, Times, Serif" size="1"><u><i>Table of Contents</i></u></font></font></a>
<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

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

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:center;'><font size=2>ENERGY CONVERSION DEVICES, INC. and SUBSIDIARIES</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:center;'><font size=2>Notes to Consolidated Financial Statements</font></p>

<p style=' margin-bottom:18pt; margin-top:0pt;text-align:justify;'><u><font size=2>Note H &#151; Stock-Based Compensation (Continued)</font></u></p>

<div align=left>

<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="80%" STYLE="margin-left:0pt;border-collapse:collapse" BORDER="0">
    <tr style='page-break-inside:avoid'>
        <td width="66%" valign=bottom >
            <p style='margin-left:.1in;text-indent:-.1in;text-align:center;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td colspan="5" valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt'><font size=2>Three Months Ended</font><br> <font size=2>September&nbsp;30,</font></p> </td>
        <td width="1%" valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="66%" valign=bottom >
            <p style='margin-left:.1in;text-indent:-.1in;text-align:center;margin-top:1.0pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <td colspan="2" valign=bottom style=' border-bottom:solid black 1.0pt; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt'><font size=2>2008</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <td colspan="2" valign=bottom style=' border-bottom:solid black 1.0pt; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt'><font size=2>2007</font></p> </td>
        <td width="1%" valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <TD WIDTH="66%" VALIGN="top" STYLE="background:#EAFFFF">
            <p style='margin-left:.5in;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>Weighted average grant date fair value per </font><br> <font size=2>&nbsp;&nbsp;&nbsp;&nbsp;option granted</font></p> </td>
        <TD WIDTH="1%" VALIGN="BOTTOM" STYLE="background:#EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>$</font></p> </td>
        <TD WIDTH="11%" VALIGN="BOTTOM" STYLE="border-top: solid black 1.0pt;background: #EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>47.05</font></p> </td>
        <TD WIDTH="7%" VALIGN="BOTTOM" STYLE="background:#EAFFFF">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD WIDTH="1%" VALIGN="BOTTOM" STYLE="background:#EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>$</font></p> </td>
        <TD WIDTH="11%" VALIGN="BOTTOM" STYLE="background:#EAFFFF;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>16.13</font></p> </td>
        <TD WIDTH="1%" VALIGN="BOTTOM" STYLE="background:#EAFFFF">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="66%" valign=top >
            <p style='margin-left:.5in;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>Total intrinsic value of stock options exercised</font></p> </td>
        <td width="1%" valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>$</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>5,077</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>$</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>1,219</font></p> </td>
        <td width="1%" valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td> </tr></table>
</div>

<p style=' margin-bottom:18pt; margin-top:18pt;text-align:justify;'><u><font size=2>Restricted Stock Awards</font></u></p>

<p style=' margin-bottom:18pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>Restricted stock awards (&#147;RSAs&#148;) consist of shares of common stock of ECD issued at a price of $0. Upon issuance, RSAs become outstanding and have voting rights. The shares issued to employees are subject to forfeiture and to restrictions which limit the sale or transfer during the restriction period. The fair value of the RSAs is determined on the date of grant based on the market price of ECD&#146;s common stock and is recognized as compensation expense. The value of RSAs granted to employees is amortized over their three-year vesting period, while the value of RSAs granted to nonemployee directors is amortized over a two- to nine-year vesting period. Information concerning RSAs awarded under the 2006 Stock Incentive Plan during the three months ended September 2008 is as follows:</font></p>


<div align=left>

<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="90%" STYLE="border-collapse:collapse">
    <tr style='page-break-inside:avoid'>
        <td width="44%" valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:1.0pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td colspan="3" valign=bottom style=' border-bottom:solid black 1.0pt; '>
            <p style='margin-left:0in;text-indent:0pt;text-align:CENTER;margin-top:2pt;margin-bottom:0pt'><font size=2>Number of Shares</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:1.0pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td colspan="4" valign=bottom style=' border-bottom:solid black 1.0pt; '>
            <p style='margin-left:0in;text-indent:0pt;text-align: center;margin-top:2pt;margin-bottom:0pt'><font size=2>Weighted Average <BR>Grant Date <BR>Fair Value</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <TD WIDTH="44%" VALIGN="top" STYLE="background:#EAFFFF">
            <p style='margin-left:.5in;text-align:justify;margin-top:2pt;margin-bottom:0pt'><font size=2>Outstanding at June&nbsp;30, 2008</font></p> </td>
        <TD WIDTH="3%" VALIGN="BOTTOM" STYLE="background:#EAFFFF">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD WIDTH="7.5%" VALIGN="BOTTOM" STYLE="border-top:solid black 1.0pt; background:#EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>89,834</font></p> </td>
        <TD WIDTH="3%" VALIGN="BOTTOM" STYLE="border-top:solid black 1.0pt; background:#EAFFFF">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD WIDTH="7%" VALIGN="BOTTOM" STYLE="background:#EAFFFF;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD WIDTH="4%" VALIGN="BOTTOM" STYLE="background:#EAFFFF">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD WIDTH="1%" VALIGN="BOTTOM" STYLE="border-top:solid black 1.0pt; background:#EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>$</font></p> </td>
        <TD WIDTH="7%" VALIGN="BOTTOM" STYLE="border-top:solid black 1.0pt; background:#EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>31.49</font></p> </td>
        <TD WIDTH="5%" VALIGN="BOTTOM" STYLE="border-top: solid black 1.0pt;background: #EAFFFF">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="44%" valign=top >
            <p style='margin-left:47pt;text-align:justify;margin-top:1.0pt;margin-bottom: 0in'><font size=2>Awarded</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: solid black 1.0pt;">
            <p style='margin-left:0pt;text-indent:2.25pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>11,000</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:1.0pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <td width="1%" valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font size=2>$</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:1.0pt;margin-bottom:0pt'><font size=2>70.98</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="44%" valign=top style='background:#EAFFFF'>
            <p style='margin-left:.5in;text-align:justify;margin-top:1.5pt;margin-bottom: 0in'><font size=2>Outstanding at September&nbsp;30, 2008</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF;">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: double black 2.25pt;background: #EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>100,834</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF;">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:1.5pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF;">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <td width="1%" valign=bottom style='background:#EAFFFF; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0pt'><font size=2>$</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:1.5pt;margin-bottom:0pt'><font size=2>35.80</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF;">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td> </tr></table>
</div>

<p style=' margin-bottom:18pt; margin-top:18pt;text-align:justify;'><u><font size=2>Restricted Stock Units</font></u></p>

<p style=' margin-bottom:18pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>RSUs settle on a one-for-one basis in shares of ECD common stock and vest in accordance with the terms of the 2006 Stock Incentive Plan or the Executive Severance Plan, as applicable. The fair value of the RSUs is determined on the date of grant based on the market price of ECD&#146;s common stock and is recognized as compensation expense. Information concerning RSUs awarded during the three months ended September 2008 is as follows:</font></p>

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>15</font></p>
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<div style="PAGE-BREAK-AFTER: always">&nbsp;</div>
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<a href="#toc-main"><font size="2"><font face="Times New Roman, Times, Serif" size="1"><u><i>Table of Contents</i></u></font></font></a>
<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

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






<p style=' margin-bottom:12pt; margin-top:0pt;text-align:center;'><font size=2>ENERGY CONVERSION DEVICES, INC. and SUBSIDIARIES</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:center;'><font size=2>Notes to Consolidated Financial Statements</font></p>

<p style=' margin-bottom:18pt; margin-top:0pt;text-align:justify;'><u><font size=2>Note H &#151; Stock-Based Compensation (Continued)</font></u></p>


<div align=left>

<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="85%" STYLE="margin-left:0pt;border-collapse:collapse">
    <tr style='page-break-inside:avoid'>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:1.0pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td colspan="3" valign=bottom style=' border-bottom:solid black 1.0pt; '>
            <p style='margin-left:0in;text-indent:0pt;text-align: center;margin-top:2pt;margin-bottom:0pt'><font size=2>Number of Shares</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:1.0pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td colspan="4" valign=bottom style=' border-bottom:solid black 1.0pt; '>
            <p style='margin-left:0in;text-indent:0pt;text-align: center;margin-top:2pt;margin-bottom:0pt'><font size=2>Weighted Average <BR>Grant Date </font><br> <font size=2>Fair Value </font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <TD WIDTH="49%" VALIGN="BOTTOM" STYLE="background:#EAFFFF">
            <p style='margin-left:.5in;text-align:justify;margin-top:4pt;margin-bottom:0pt'><font size=2>Outstanding at June&nbsp;30, 2008</font></p> </td>
        <TD WIDTH="5%" VALIGN="BOTTOM" STYLE="background:#EAFFFF">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:4pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD WIDTH="7.5%" VALIGN="BOTTOM" STYLE="border-top: solid black 1.0pt;background: #EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:4pt;margin-bottom:0pt'><font size=2>2,500</font></p> </td>
        <TD WIDTH="5%" VALIGN="BOTTOM" STYLE="border-top:solid black 1.0pt; background:#EAFFFF">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:4pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD WIDTH="6%" VALIGN="BOTTOM" STYLE="background:#EAFFFF;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:4pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD WIDTH="4%" VALIGN="BOTTOM" STYLE="background:#EAFFFF">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:4pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD WIDTH="1%" VALIGN="BOTTOM" STYLE="border-top:solid black 1.0pt; background:#EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:4pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD WIDTH="9%" VALIGN="BOTTOM" STYLE="border-top:solid black 1.0pt; background:#EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:4pt;margin-bottom:0pt'><font size=2>$&nbsp;&nbsp;73.64</font></p> </td>
        <TD WIDTH="5%" VALIGN="BOTTOM" STYLE="border-top:solid black 1.0pt; background:#EAFFFF">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:4pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:48pt;text-align:justify;margin-top:1.0pt;margin-bottom: 0in'><font size=2>Awarded</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: solid black 1.0pt;">
            <p style='margin-left:0pt;text-indent:2.25pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>28,580</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:1.0pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <td width="1%" valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td width="9%" valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:1.0pt;margin-bottom:0pt'><font size=2>$&nbsp;&nbsp;76.74</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF">
            <p style='margin-left:.5in;text-align:justify;margin-top:1.5pt;margin-bottom: 0in'><font size=2>Outstanding at September&nbsp;30, 2008</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF;">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: double black 2.25pt;background: #EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>31,080</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF;">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:1.5pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF;">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <td width="1%" valign=bottom style='background:#EAFFFF; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td width="9%" valign=bottom style='background:#EAFFFF; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:1.5pt;margin-bottom:0pt'><font size=2>$&nbsp;&nbsp;76.49</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td> </tr></table>
</div>

<p style=' margin-bottom:18pt; margin-top:18pt;text-align:left;'><u><font size=2>Note I &#151; Restructuring Charges </font></u><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:18pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>The restructuring charges are principally associated with management&#146;s decision in fiscal 2007 to consolidate the photovoltaics and machine-building activities into United Solar and reduce costs in both the Ovonic Materials segment and Corporate Activities. The charges were primarily for severance and costs associated with the closing of facilities.</font></p>

<p style=' margin-bottom:18pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>The following summarizes activity in the Company&#146;s restructuring reserve through September&nbsp;30, 2008.</font></p>


<div align=left>

<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="90%" STYLE="margin-left:0pt;border-collapse:collapse">
    <tr style='page-break-inside:avoid'>
        <td width="35%" valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:1.0pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td colspan="4" valign=bottom style=' border-bottom:solid black 1.0pt; '>
            <p style='margin-left:0in;text-indent:0pt;text-align: center;margin-top:2pt;margin-bottom:0pt'><font size=2>Employee-Related Expenses</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <td colspan="4" valign=bottom style=' border-bottom:solid black 1.0pt; '>
            <p style='margin-left:0in;text-indent:0pt;text-align: center;margin-top:2pt;margin-bottom:0pt'><font size=2>Other Expenses</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <td colspan="4" valign=bottom style=' border-bottom:solid black 1.0pt; '>
            <p style='margin-left:0in;text-indent:0pt;text-align: center;margin-top:2pt;margin-bottom:0pt'><font size=2>Total</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <TD WIDTH="35%" VALIGN="top" STYLE="background:#EAFFFF">
            <p style='margin-left:.5in;text-align:left;margin-top:4pt;margin-bottom:0pt'><font size=2>Balance June&nbsp;30, 2008</font></p> </td>
        <TD WIDTH="4.5%" VALIGN="BOTTOM" STYLE="background:#EAFFFF">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:4pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD WIDTH="1%" VALIGN="BOTTOM" STYLE="border-top:solid black 1.0pt; background:#EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:4pt;margin-bottom:0pt'><font size=2>$</font></p> </td>
        <TD WIDTH="7.5%" VALIGN="BOTTOM" STYLE="border-top:solid black 1.0pt; background:#EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:4pt;margin-bottom:0pt'><font size=2>1,086</font></p> </td>
        <TD WIDTH="5.5%" VALIGN="BOTTOM" STYLE="border-top:solid black 1.0pt;">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:4pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD WIDTH="6%" VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:4pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD WIDTH="2%" VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:4pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD WIDTH="1%" VALIGN="BOTTOM" STYLE="border-top:solid black 1.0pt; background:#EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:4pt;margin-bottom:0pt'><font size=2>$</font></p> </td>
        <TD WIDTH="7.5%" VALIGN="BOTTOM" STYLE="border-top:solid black 1.0pt; background:#EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:4pt;margin-bottom:0pt'><font size=2>159</font></p> </td>
        <TD WIDTH="3%" VALIGN="BOTTOM" STYLE="border-top:solid black 1.0pt; background:#EAFFFF">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:4pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD WIDTH="6%" VALIGN="BOTTOM" STYLE="background:#EAFFFF;">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:4pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD WIDTH="2%" VALIGN="BOTTOM" STYLE="background:#EAFFFF">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:4pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD WIDTH="1%" VALIGN="BOTTOM" STYLE="border-top:solid black 1.0pt; background:#EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:4pt;margin-bottom:0pt'><font size=2>$</font></p> </td>
        <TD WIDTH="7.5%" VALIGN="BOTTOM" STYLE="border-top: solid black 1.0pt;background: #EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:4pt;margin-bottom:0pt'><font size=2>1,245</font></p> </td>
        <TD WIDTH="3%" VALIGN="BOTTOM" STYLE="border-top:solid black 1.0pt; background:#EAFFFF">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="35%" valign=top >
            <p style='margin-left:47pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>Charges</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>18</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>226</font></p> </td>
        <td width="3%" valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td width="1%" valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>244</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="35%" valign=top style='background:#EAFFFF'>
            <p style='margin-left:47pt;text-align:left;margin-top:1.0pt;margin-bottom: 0in'><font size=2>Utilization or payment</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF;">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: solid black 1.0pt; background:#EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: solid black 1.0pt; background:#EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>(338</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0.5pt'><font size=2>)</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: solid black 1.0pt; background:#EAFFFF">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: solid black 1.0pt; background:#EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>(236</font></p> </td>
        <td width="3%" valign=bottom style='background:#EAFFFF; '>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>)</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF;">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF;">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td width="1%" valign=bottom style='border-bottom: solid black 1.0pt; background:#EAFFFF'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: solid black 1.0pt; background:#EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>(574</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF;">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>)</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="35%" valign=top >
            <p style='margin-left:.5in;text-align:left;margin-top:1.5pt;margin-bottom: 0in'><font size=2>September&nbsp;30, 2008</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: double black 2.25pt;background: white">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>$</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: double black 2.25pt;background: white">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>766</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: double black 2.25pt;background: white">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>$</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: double black 2.25pt;background: white">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>149</font></p> </td>
        <td width="3%" valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <td width="1%" valign=bottom style='border-bottom: double black 2.25pt;background: white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>$</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: double black 2.25pt;background: white">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>915</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td> </tr></table>
</div>

<p style=' margin-bottom:18pt; margin-top:18pt; text-indent:0.5in;text-align:justify;'><font size=2>Restructuring costs are expected to be between $1,200 to $1,600 for fiscal 2009.</font></p>

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>16</font></p>
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<a href="#toc-main"><font size="2"><font face="Times New Roman, Times, Serif" size="1"><u><i>Table of Contents</i></u></font></font></a>
<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"><FONT face="Times New Roman, Times, Serif" size=2></FONT>&nbsp;</P>


<p style=' margin-bottom:12pt; margin-top:0pt;text-align:center;'><font size=2>ENERGY CONVERSION DEVICES, INC. and SUBSIDIARIES</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:center;'><font size=2>Notes to Consolidated Financial Statements</font></p>

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


<p style=' margin-bottom:18pt; margin-top:0pt;text-align:left;'><u><font size=2>Note J &#151; Fair Value</font></u></p>

<p style=' margin-bottom:18pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>Effective July 1, 2008, the Company adopted SFAS No. 157, &#147;Fair Value Measurements&#148;, which establishes a framework for fair value and expands disclosures about financial instruments measured at fair value. Financial instruments held by the Company include investments classified as held for sale, derivatives, convertible debt and money market funds.</font></p>

<p style=' margin-bottom:14pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>SFAS No. 157 requires the use of valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs. Observable inputs consist of market data obtained from independent sources while unobservable inputs reflect the Company&#146;s own market assumptions. These inputs create the following fair value hierarchy:</font></p>


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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:8.0pt'><font size=2>&nbsp;</font></p> </td>
        <td width="40" valign=top style='padding:0in 0in 8.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:CENTER;margin-top:0pt;margin-bottom:0pt'><font size=4><b>&#149;</b></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 size=2>Level 1 &#150; Quoted prices in active markets for identical assets or liabilities</font></p> </td> </tr></table>
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        <td width="40" 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:8.0pt'><font size=2>&nbsp;</font></p> </td>
        <td width="40" valign=top style='padding:0in 0in 8.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:CENTER;margin-top:0pt;margin-bottom:0pt'><font size=4><b>&#149;</b></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 size=2>Level 2 &#150; Valuations based on quoted prices in markets that are not active, quoted prices for similar assets or liabilities or all other inputs that are observable </font></p> </td> </tr></table>
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        <td width="40" 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:8.0pt'><font size=2>&nbsp;</font></p> </td>
        <td width="40" valign=top style='padding:0in 0in 8.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:CENTER;margin-top:0pt;margin-bottom:0pt'><font size=4><b>&#149;</b></font></p> </td>
        <td  valign=top style='padding:0in 0in .25in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Level 3 &#150; Unobservable inputs for which there is little or no market data which require the Company to develop its own assumptions</font></p> </td> </tr></table>
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<p style=' margin-bottom:18pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>If the inputs used to measure the fair value of a financial instrument fall within different levels of the hierarchy, the financial instrument is categorized based upon the lowest level input that is significant to the fair value measurement.</font><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>

<p style=' margin-bottom:18pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>Whenever possible, we use quoted market prices to determine fair value. In the absence of quoted market prices, we use independent sources and data to determine fair value. At September&nbsp;30, 2008, the fair value of corporate bonds, money market funds, senior convertible notes and foreign currency hedges was determined using quoted prices in active markets. As described in Note B, our investments in auction rate certificates (ARCs) are not valued using a market model due to the recent absence of auctions. Instead, the fair value of the ARCs is determined using unobservable inputs (cash flows, credit ratings, 12 month trailing-average yield of 91 day T-bill and cost of funds) and are therefore classified as Level 3.</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.5in;text-align:left;'><font size=2>At September&nbsp;30, 2008, information regarding our assets and liabilities measured at fair value is as follows&nbsp;: </font></p>


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<table border="0" cellspacing=0 cellpadding=0 width="83%" style='margin-left:42.0pt;border-collapse:collapse'>
    <tr style='page-break-inside:avoid'>
        <td width="36%" valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:1.0pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td colspan="2" valign=bottom style=' border-bottom:solid black 1.0pt; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt'><font size=2>Level 1</font></p> </td>
        <td width="3%" valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <td width="12%" valign=bottom style='border-bottom: solid black 1.0pt; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt'><font size=2>Level 2</font></p> </td>
        <td width="3%" valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <td colspan="2" valign=bottom style=' border-bottom:solid black 1.0pt; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt'><font size=2>Level 3</font></p> </td>
        <td width="3%" valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <td colspan="2" valign=bottom style=' border-bottom:solid black 1.0pt; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt'><font size=2>Total</font></p> </td>
        <td width="1%" valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="36%" valign=top style='background:#EAFFFF'>
            <p style='margin-left:.25in;text-indent:-.25in;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>Auction rate certificates</font></p> </td>
        <td width="2%" valign=bottom style='background:#EAFFFF'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td width="9%" valign=bottom style='border-top:solid black 1.0pt; background:#EAFFFF'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td width="3%" valign=bottom style='background:#EAFFFF; '>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td width="12%" valign=bottom style='background:#EAFFFF'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td width="3%" valign=bottom style='background:#EAFFFF; '>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td width="2%" valign=bottom style='background:#EAFFFF'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>$</font></p> </td>
        <td width="11%" valign=bottom style='border-top:solid black 1.0pt; background:#EAFFFF'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>31,451</font></p> </td>
        <td width="3%" valign=bottom style='background:#EAFFFF; '>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td width="2%" valign=bottom style='background:#EAFFFF'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>$</font></p> </td>
        <td width="11%" valign=bottom style='border-top: solid black 1.0pt;background: #EAFFFF'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>31,451</font></p> </td>
        <td width="1%" valign=bottom style='background:#EAFFFF; '>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="36%" valign=top >
            <p style='margin-left:.25in;text-indent:-.25in;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>Corporate bonds</font></p> </td>
        <td width="2%" valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>$</font></p> </td>
        <td width="9%" valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>11,201</font></p> </td>
        <td width="3%" valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td width="12%" valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td width="3%" valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td width="2%" valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td width="11%" valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td width="3%" valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td width="2%" valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td width="11%" valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>11,201</font></p> </td>
        <td width="1%" valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="36%" valign=top style='background:#EAFFFF'>
            <p style='margin-left:.25in;text-indent:-.25in;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>Money market funds</font></p> </td>
        <td width="2%" valign=bottom style='background:#EAFFFF; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td width="9%" valign=bottom style='background:#EAFFFF; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>447,715</font></p> </td>
        <td width="3%" valign=bottom style='background:#EAFFFF; '>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td width="12%" valign=bottom style='background:#EAFFFF; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td width="3%" valign=bottom style='background:#EAFFFF; '>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td width="2%" valign=bottom style='background:#EAFFFF; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td width="11%" valign=bottom style='background:#EAFFFF; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td width="3%" valign=bottom style='background:#EAFFFF; '>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td width="2%" valign=bottom style='background:#EAFFFF; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td width="11%" valign=bottom style='background:#EAFFFF; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>447,715</font></p> </td>
        <td width="1%" valign=bottom style='background:#EAFFFF; '>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="36%" valign=top >
            <p style='margin-left:.25in;text-indent:-.25in;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>Senior convertible notes</font></p> </td>
        <td width="2%" valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td width="9%" valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>263,158</font></p> </td>
        <td width="3%" valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td width="12%" valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td width="3%" valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td width="2%" valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td width="11%" valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td width="3%" valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td width="2%" valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td width="11%" valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>263,158</font></p> </td>
        <td width="1%" valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="36%" valign=top style='background:#EAFFFF'>
            <p style='margin-left:.25in;text-indent:-.25in;text-align:left;margin-top:2.0pt;margin-bottom: 2.0pt'><font size=2>Foreign currency hedges</font></p> </td>
        <td width="2%" valign=bottom style='background:#EAFFFF; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:2.0pt'><font size=2>&nbsp;</font></p> </td>
        <td width="9%" valign=bottom style='background:#EAFFFF; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:2.0pt'><font size=2>190</font></p> </td>
        <td width="3%" valign=bottom style='background:#EAFFFF; '>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:2.0pt'><font size=2>&nbsp;</font></p> </td>
        <td width="12%" valign=bottom style='background:#EAFFFF; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:2.0pt'><font size=2>&nbsp;</font></p> </td>
        <td width="3%" valign=bottom style='background:#EAFFFF; '>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:2.0pt'><font size=2>&nbsp;</font></p> </td>
        <td width="2%" valign=bottom style='background:#EAFFFF; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:2.0pt'><font size=2>&nbsp;</font></p> </td>
        <td width="11%" valign=bottom style='background:#EAFFFF; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:2.0pt'><font size=2>&nbsp;</font></p> </td>
        <td width="3%" valign=bottom style='background:#EAFFFF; '>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:2.0pt'><font size=2>&nbsp;</font></p> </td>
        <td width="2%" valign=bottom style='background:#EAFFFF; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:2.0pt'><font size=2>&nbsp;</font></p> </td>
        <td width="11%" valign=bottom style='background:#EAFFFF; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:2.0pt'><font size=2>190</font></p> </td>
        <td width="1%" valign=bottom style='background:#EAFFFF; '>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:2.0pt'><font size=2>&nbsp;</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<p style=' margin-bottom:0pt; margin-top:4pt;text-align:center;'><font size=2>17</font></p>
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<a href="#toc-main"><font size="2"><font face="Times New Roman, Times, Serif" size="1"><u><i>Table of Contents</i></u></font></font></a>
<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

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

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:center;'><font size=2>ENERGY CONVERSION DEVICES, INC. and SUBSIDIARIES</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:center;'><font size=2>Notes to Consolidated Financial Statements</font></p>

<p style=' margin-bottom:18pt; margin-top:0pt;text-align:left;'><u><font size=2>Note J &#151; Fair Value (Continued)</font></u></p>

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

<p style=' margin-bottom:18pt; margin-top:0pt; text-indent:0.5in;text-align:left;'><font size=2>The following table presents the changes in Level 3 assets for the three months ended September&nbsp;30, 2008:&nbsp;</font></p>


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<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="85%" STYLE="margin-left:2.9pt;border-collapse:collapse">
    <tr style='page-break-inside:avoid'>
        <td width="72%" valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:1.0pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td colspan="4" valign=bottom style=' border-bottom:solid black 1.0pt; '>
            <p style='margin-left:0in;text-indent:0pt;text-align: center;margin-top:2pt;margin-bottom:0pt'><font size=2>Auction rate certificates</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <TD WIDTH="72%" VALIGN="top" STYLE="background:#EAFFFF">
            <p style='margin-left:.7in;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>Balance at July 1, 2008</font></p> </td>
        <TD WIDTH="5%" VALIGN="TOP" STYLE="background:#EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD WIDTH="1%" VALIGN="BOTTOM" STYLE="border-top:solid black 1.0pt; background:#EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>$</font></p> </td>
        <TD WIDTH="10%" VALIGN="BOTTOM" STYLE="border-top: solid black 1.0pt;background: #EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>32,277</font></p> </td>
        <TD WIDTH="6%" VALIGN="BOTTOM" STYLE="border-top:solid black 1.0pt; background:#EAFFFF">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="72%" valign=top >
            <p style='margin-left:.7in;text-align:left;margin-top:1.0pt;margin-bottom: 0in'><font size=2>Losses included in other comprehensive loss</font></p> </td>
        <TD VALIGN="TOP">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: solid black 1.0pt;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: solid black 1.0pt;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>(826</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: solid white 1.0pt;">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>)</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="72%" valign=top style='background:#EAFFFF'>
            <p style='margin-left:.7in;text-align:left;margin-top:1.5pt;margin-bottom: 0in'><font size=2>Balance at September&nbsp;30, 2008</font></p> </td>
        <TD VALIGN="TOP" STYLE="background:#EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: double black 2.25pt;background: #EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>$</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: double black 2.25pt;background: #EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>31,451</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td> </tr></table>
</div>

<p style=' margin-bottom:18pt; margin-top:18pt;text-align:left;'><u><font size=2>Note K &#151; Business Segments</font></u></p>

<p style=' margin-bottom:18pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>Effective April&nbsp;1, 2007, we organized our business into two operating business segments, United Solar Ovonic (including ECD&#146;s previous Production Technology and Machine Building Division) and Ovonic Materials (including ECD&#146;s previous business activities, but excluding Production Technology and Machine Division, corporate activities, and Ovonic Battery&#146;s previous business activities). In addition to these two operating segments, there are certain Corporate Activities, including our investments in our two joint ventures, Cobasys LLC and Ovonyx, Inc., which are not allocated to the above segments.</font></p>


<div align=left>

<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="100%" STYLE="border-collapse:collapse">
    <tr style='page-break-inside:avoid'>
        <TD VALIGN="bottom">
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:1.0pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td colspan="4" valign=bottom style=' border-bottom:solid black 1.0pt; '>
            <p style='margin-left:0in;text-indent:0pt;text-align: center;margin-top:2pt;margin-bottom:0pt'><font size=2>United Solar</font><br> <font size=2>Ovonic</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <td colspan="4" valign=bottom style=' border-bottom:solid black 1.0pt; '>
            <p style='margin-left:0in;text-indent:0pt;text-align: center;margin-top:2pt;margin-bottom:0pt'><font size=2>Ovonic</font><br> <font size=2>Materials</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <td colspan="4" valign=bottom style=' border-bottom:solid black 1.0pt; '>
            <p style='margin-left:0in;text-indent:0pt;text-align: center;margin-top:2pt;margin-bottom:0pt'><font size=2>Corporate</font><br> <font size=2>Activities</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <td colspan="4" valign=bottom style=' border-bottom:solid black 1.0pt; '>
            <p style='margin-left:0in;text-indent:0pt;text-align: center;margin-top:2pt;margin-bottom:0pt'><font size=2>Consolidating</font><br> <font size=2>Entries</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <td colspan="4" valign=bottom style=' border-bottom:solid black 1.0pt; '>
            <p style='margin-left:0in;text-indent:0pt;text-align: center;margin-top:2pt;margin-bottom:0pt'><font size=2>Consolidated</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <TD WIDTH="27%" VALIGN="top" STYLE="background:#EAFFFF">
            <p style='margin-left:.25in;text-indent:-.25in;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>Revenues</font></p> </td>
        <TD WIDTH="1.5%" VALIGN="BOTTOM" STYLE="background:#EAFFFF">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD WIDTH="1%" VALIGN="BOTTOM" STYLE="border-top:solid black 1.0pt; background:#EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD WIDTH="7%" VALIGN="BOTTOM" STYLE="border-top:solid black 1.0pt; background:#EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD WIDTH="2.5%" VALIGN="BOTTOM" STYLE="border-top:solid black 1.0pt; background:#EAFFFF">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD WIDTH="3.7%" VALIGN="BOTTOM" STYLE="background:#EAFFFF;">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD WIDTH="1%" VALIGN="BOTTOM" STYLE="background:#EAFFFF">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD WIDTH="1%" VALIGN="BOTTOM" STYLE="border-top:solid black 1.0pt; background:#EAFFFF">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD WIDTH="6%" VALIGN="BOTTOM" STYLE="border-top:solid black 1.0pt; background:#EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD WIDTH="2%" VALIGN="BOTTOM" STYLE="border-top:solid black 1.0pt; background:#EAFFFF">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD WIDTH="3.7%" VALIGN="BOTTOM" STYLE="background:#EAFFFF;">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD WIDTH="2%" VALIGN="BOTTOM" STYLE="background:#EAFFFF">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD WIDTH="1%" VALIGN="BOTTOM" STYLE="border-top:solid black 1.0pt; background:#EAFFFF">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD WIDTH="6%" VALIGN="BOTTOM" STYLE="border-top:solid black 1.0pt; background:#EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD WIDTH="3%" VALIGN="BOTTOM" STYLE="border-top:solid black 1.0pt; background:#EAFFFF">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD WIDTH="3.7%" VALIGN="BOTTOM" STYLE="background:#EAFFFF">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD WIDTH="2%" VALIGN="BOTTOM" STYLE="background:#EAFFFF">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD WIDTH="1%" VALIGN="BOTTOM" STYLE="border-top:solid black 1.0pt; background:#EAFFFF">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD WIDTH="6%" VALIGN="BOTTOM" STYLE="border-top:solid black 1.0pt; background:#EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD WIDTH="3%" VALIGN="BOTTOM" STYLE="border-top:solid black 1.0pt; background:#EAFFFF">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD WIDTH="3.7%" VALIGN="BOTTOM" STYLE="background:#EAFFFF;">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD WIDTH="1.5%" VALIGN="BOTTOM" STYLE="background:#EAFFFF">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD WIDTH="1%" VALIGN="BOTTOM" STYLE="border-top:solid black 1.0pt; background:#EAFFFF">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD WIDTH="7%" VALIGN="BOTTOM" STYLE="border-top:solid black 1.0pt; background:#EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD WIDTH="2.5%" VALIGN="BOTTOM" STYLE="border-top:solid black 1.0pt; background:#EAFFFF">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <TD VALIGN="top">
            <p style='margin-left:29.0pt;text-indent:-.25in;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>Three months ended</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td width="1%" valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td width="1%" valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td width="1%" valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td width="2%" valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td width="2%" valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td width="1%" valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td width="3%" valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td width="1%" valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <TD VALIGN="top" STYLE="background:#EAFFFF">
            <p style='margin-left:40.0pt;text-indent:-.25in;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>September&nbsp;30, 2008</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF;">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td width="1%" valign=bottom style='background:#EAFFFF; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>$</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>91,811</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF;">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td width="1%" valign=bottom style='background:#EAFFFF'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td width="1%" valign=bottom style='background:#EAFFFF; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>$</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>3,879</font></p> </td>
        <td width="2%" valign=bottom style='background:#EAFFFF; '>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF;">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF;">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>$</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>75</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF;">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td width="2%" valign=bottom style='background:#EAFFFF; '>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td width="1%" valign=bottom style='background:#EAFFFF; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>$</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt'><font size=2>&#151;</font></p> </td>
        <td width="3%" valign=bottom style='background:#EAFFFF'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF;">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF;">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td width="1%" valign=bottom style='background:#EAFFFF; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>$</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>95,765</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <TD VALIGN="top">
            <p style='margin-left:40.0pt;text-indent:-.25in;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>September&nbsp;30, 2007</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td width="1%" valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>41,887</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td width="1%" valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td width="1%" valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>5,092</font></p> </td>
        <td width="2%" valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>169</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td width="2%" valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td width="1%" valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>(106</font></p> </td>
        <td width="3%" valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>)</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td width="1%" valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>47,042</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <TD VALIGN="top" STYLE="background:#EAFFFF">
            <p style='margin-left:.25in;text-indent:-.25in;text-align:left;margin-top:4.0pt;margin-bottom: 0in'><font size=2>Operating Income (Loss)</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF;">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:4.0pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <td width="1%" valign=bottom style='background:#EAFFFF; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:4.0pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:4.0pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:4.0pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF;">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:4.0pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <td width="1%" valign=bottom style='background:#EAFFFF'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:4.0pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <td width="1%" valign=bottom style='background:#EAFFFF; '>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:4.0pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:4.0pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td width="2%" valign=bottom style='background:#EAFFFF; '>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:4.0pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF;">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:4.0pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF;">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:4.0pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF;">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:4.0pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:4.0pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF;">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:4.0pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:4.0pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <td width="2%" valign=bottom style='background:#EAFFFF; '>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:4.0pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <td width="1%" valign=bottom style='background:#EAFFFF; '>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:4.0pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:4.0pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td width="3%" valign=bottom style='background:#EAFFFF'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:4.0pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF;">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:4.0pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF;">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:4.0pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <td width="1%" valign=bottom style='background:#EAFFFF; '>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:4.0pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:4.0pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:4.0pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <TD VALIGN="top">
            <p style='margin-left:29.0pt;text-indent:-.25in;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>Three months ended</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td width="1%" valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td width="1%" valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td width="1%" valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td width="2%" valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td width="2%" valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td width="1%" valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td width="3%" valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td width="1%" valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <TD VALIGN="top" STYLE="background:#EAFFFF">
            <p style='margin-left:40.0pt;text-indent:-.25in;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>September&nbsp;30, 2008</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF;">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td width="1%" valign=bottom style='background:#EAFFFF; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>$</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>20,786</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF;">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td width="1%" valign=bottom style='background:#EAFFFF'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td width="1%" valign=bottom style='background:#EAFFFF; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>$</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>254</font></p> </td>
        <td width="2%" valign=bottom style='background:#EAFFFF; '>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF;">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF;">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>$</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF;">
            <p style='margin-left:0pt;text-indent:2.25pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>(7,327</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF;">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>)</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td width="2%" valign=bottom style='background:#EAFFFF; '>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td width="1%" valign=bottom style='background:#EAFFFF; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>$</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>59</font></p> </td>
        <td width="3%" valign=bottom style='background:#EAFFFF'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF;">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF;">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td width="1%" valign=bottom style='background:#EAFFFF; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>$</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>13,772</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <TD VALIGN="top">
            <p style='margin-left:40.0pt;text-indent:-.25in;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>September&nbsp;30, 2007</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td width="1%" valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>(468</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>)</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td width="1%" valign=bottom >
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            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>(8,833</font></p> </td>
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            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>(9,953</font></p> </td>
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            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>)</font></p> </td> </tr></table>
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<p style=' margin-bottom:18pt; margin-top:18pt; text-indent:0.5in;text-align:justify;'><font size=2>Sales to three customers represented approximately 38% of product sales in the United Solar segment for the quarter ended September&nbsp;30, 2008. One customer accounted for approximately 19% of United Solar&#146;s product sales for the quarter ended September&nbsp;30, 2007.</font></p>

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>18</font></p>
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<p style=' margin-bottom:12pt; margin-top:0pt;text-align:center;'><font size=2>ENERGY CONVERSION DEVICES, INC. and SUBSIDIARIES</font></p>

<p style=' margin-bottom:18pt; margin-top:0pt;text-align:center;'><font size=2>Notes to Consolidated Financial Statements</font></p>


<p style=' margin-bottom:18pt; margin-top:0pt;text-align:left;'><u><font size=2>Note L &#151; Income Taxes</font></u></p>

<p style=' margin-bottom:18pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>In the first quarter of fiscal 2008, the Company adopted FASB Interpretation No. 48 (FIN 48), &#147;Accounting for Uncertainty for Income Taxes &#150; an interpretation of FASB Statement No. 109.&#148; FIN 48 prescribes a recognition threshold and measurement methodology for recording within the financial statements uncertain tax positions taken, or expected to be taken, in tax returns. It also provides guidance on derecognition, classification, interest and penalties, accounting in interim periods and disclosure related to uncertain tax positions. As of September&nbsp;30, 2008, the Company has no unrecognized tax benefits as defined in FIN 48.</font></p>

<p style=' margin-bottom:18pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>The Company files U.S. federal, state and foreign income tax returns. Due to its net operating loss carryforwards, federal income tax returns from fiscal 1993 forward are still subject to examination. In addition, open tax years related to various state and foreign jurisdictions remain subject to examination.</font></p>

<p style=' margin-bottom:18pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>Tax expense relates to our subsidiaries located in Mexico and Germany. Due to the availability of net operating losses in the U.S., no income tax expense is recorded for U.S. operations.</font></p>

<p style=' margin-bottom:18pt; margin-top:0pt;text-align:left;'><u><font size=2>Note M &#151; Litigation</font></u></p>

<p style=' margin-bottom:18pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><i><font size=2>Cobasys</font></i><font size=2>. On September&nbsp;10, 2007, Chevron Technology Ventures LLC, (CTV) issued a notice of dispute and filed claims in arbitration against ECD and OBC relating to our Cobasys joint venture. CTV&#146;s original arbitration claim seeks damages and injunctive and other relief and alleges that ECD and OBC breached and anticipatorily repudiated obligations to provide certain funding to Cobasys under the Amended and Restated Operating Agreement dated as of December&nbsp;2, 2004 among us, OBC and CTV (the &#147;Operating Agreement&#148;), which governs Cobasys. CTV subsequently filed a supplemental notice of dispute amending its claims to assert that ECD and OBC had dishonored CTV&#146;s preferred interest in Cobasys and that OBC had breached its obligation to use diligent efforts to approve a 2008 annual budget for Cobasys. We and OBC have denied CTV&#146;s
allegations and filed a counterclaim, seeking damages and injunctive and other relief on the ground that CTV has been acting unilaterally and in violation of the Operating Agreement and applicable Michigan law in regard to the funding and spending provisions of the Agreement. </font></p>

<p style=' margin-bottom:18pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>We and OBC dispute and have been vigorously defending the claims asserted by CTV and have pursued our counterclaim. In our view, the Operating Agreement is clear that we and OBC have no present obligation to provide funding to Cobasys; OBC is not in default of the Operating Agreement; any future funding obligation would arise only upon unanimous approval by Cobasys&#146; members, OBC and CTV, of (i) a 2008 budget and operating plan for Cobasys, and (ii) agreed capital contributions by the members; and CTV has no right unilaterally to provide funding or to authorize spending by Cobasys without an approved 2008 budget and operating plan, or otherwise as approved by OBC. In our view, the Operating </font></p>


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<p style=' margin-bottom:18pt; margin-top:0pt;text-align:center;'><font size=2>ENERGY CONVERSION DEVICES, INC. and SUBSIDIARIES</font></p>

<p style=' margin-bottom:18pt; margin-top:0pt;text-align:center;'><font size=2>Notes to Consolidated Financial Statements</font></p>

<p style=' margin-bottom:18pt; margin-top:0pt;text-align:left;'><u><font size=2>Note M &#151; Litigation (Continued)</font></u></p>

<p style=' margin-bottom:18pt; margin-top:0pt;text-align:justify;'><font size=2>Agreement is also clear that we and OBC have not dishonored CTV&#146;s preferred interests; OBC has an unqualified right to refuse to sell its interests in Cobasys on terms that it does not consider appropriate; and OBC may determine in its discretion whether to approve any sale of Cobasys or sale of CTV&#146;s interests in Cobasys.</font></p>

<p style=' margin-bottom:18pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>The members of Cobasys have not approved a 2008 business plan and budget, and CTV and OBC have not been able to agree on a solution to Cobasys&#146; business issues or whether Cobasys should continue as a going concern if it cannot be sold in the near future. Cobasys had losses of approximately $74 million and obtained funding of approximately $84 million in 2007, and in January 2008 Cobasys management forecast losses of approximately $82-86 million and funding requirements of approximately $92-94 million for 2008. Until September 2007, CTV historically funded Cobasys&#146; loss-generating operations through the purchase of preferred interests. From October 2007 through January 2008, CTV declined to purchase preferred interests and funded Cobasys in a manner that in OBC&#146;s view violated the Operating Agreement and applicable Michigan law. Since February 2008, Cobasys has received
funding support from a customer in the form of a loan for capital equipment purchases and a price increase on products sold to the customer. While Cobasys has been receiving this funding support from its customer, Cobasys management has not sought any funding from the members of Cobasys. There is no assurance that this customer funding support will continue on these or other terms or otherwise be sufficient to permit Cobasys to continue as a going concern. </font></p>

<p style=' margin-bottom:18pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>Since February 15, 2008 the arbitration has been suspended pursuant to an interim settlement agreement among us, OBC and CTV in order to pursue the potential sale of Cobasys to a third party. Sale negotiations have been ongoing during which the parties to the arbitration have repeatedly amended the interim settlement agreement to extend the deadline for timely consummation of the sale. There is no assurance that the sale will be completed by November 17, 2008, the current deadline, and, if not completed, that the parties will again extend the interim settlement agreement.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>20</font></p>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><u><b><font size=2>Item 2</font></b></u><b><font size=2>.</font></b></p> </td>
        <td width="90%" valign=top style='padding:0in 0in .25in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><u><b><font size=2>Management&#146;s Discussion and Analysis of Financial Condition and Results of Operations</font></b></u></p> </td> </tr></table>
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<p style=' margin-bottom:18pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>This section summarizes significant factors affecting the Company&#146;s consolidated operating results, financial condition and liquidity for the three months ended September&nbsp;30, 2008. This section should be read in conjunction with the Company&#146;s Consolidated Financial Statements and related notes appearing elsewhere in this report and the Company&#146;s filed Annual Report on Form 10-K for the year ended June&nbsp;30, 2008. All amounts are in thousands.</font></p>

<p style=' margin-bottom:18pt; margin-top:0pt;text-align:justify;'><b><font size=2>Overview</font></b></p>

<p style=' margin-bottom:18pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>We design, manufacture and sell photovoltaic (&#147;PV&#148;) products, known as PV or solar laminates that generate clean, renewable energy by converting sunlight into electricity. Solar laminate sales represent more than 90% of our revenues. We also receive fees and royalties from licensees of our nickel metal hydride (&#147;NiMH&#148;) battery technology and sell high performance nickel hydroxide used in NiMH batteries. </font></p>

<p style=' margin-bottom:18pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>The following key factors should be considered when reviewing our results for the periods discussed:</font></p>


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            <p style='margin-left:0pt;text-indent:0pt;text-align:CENTER;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:justify;margin-top:0pt;margin-bottom:0pt'><i><font size=2>Our consolidated financial results are driven primarily by the performance of our United Solar segment</font></i><font size=2>. Our United Solar segment accounted for 96% and 89% of our total revenue in the quarters ended September&nbsp;30, 2008 and 2007, respectively. Our United Solar segment generated operating income of $20,786 for the quarter ended September&nbsp;30, 2008. Given the expected growth of this segment (as discussed below) relative to our other business activities, our overall success in the foreseeable future will be aligned primarily with the performance of our United Solar segment and subject to the risks of that business.</font></p> </td> </tr></table>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:8.0pt'><font size=2>&nbsp;</font></p> </td>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:CENTER;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:justify;margin-top:0pt;margin-bottom:0pt'><i><font size=2>We are expanding our manufacturing capacity in our United Solar segment to meet growing demand</font></i><font size=2>. We are adding 60MW of nameplate capacity in the first half of fiscal 2009 (to bring our nameplate capacity to 178MW) and have selected a site that will continue our expansion to 420MW of nameplate capacity by 2010, moving toward our goal of 720MW by 2011 and 1GW by 2012. We intend to fund this expansion using cash flow from operations and the funds generated from the offering of our convertible notes and common stock, which was completed in fiscal 2008.</font></p> </td> </tr></table>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:8.0pt'><font size=2>&nbsp;</font></p> </td>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:CENTER;margin-top:0pt;margin-bottom:0pt'><font size=4><b>&#149;</b></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'><i><font size=2>We are enhancing our revenues in our United Solar segment through a demand driven expansion strategy, which includes increasing our sales of solar laminates with &#147;take or pay&#148; agreements and focusing on customers and markets where our solar laminates have a competitive advantage, particularly the building-integrated photovoltaic (BIPV) market</font></i><font size=2>. We increased our product sales in our United Solar segment by 124% in the three-month period ended September&nbsp;30, 2008 (as compared to the same period in 2007) to $89,450. These sales were generally consummated under supply agreements with our customers that established an overall framework for supplying our solar laminates but did not include minimum purchase requirements. In order to increase visibility and certainty, and to plan our </font></p> </td> </tr></table>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:8.0pt'><font size=2>&nbsp;</font></p> </td>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:CENTER;margin-top:0pt;margin-bottom:0pt'><font size=4><b>&nbsp;</b></font></p> </td>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>operations accordingly, we have recently focused our efforts on long-term &#147;take or pay&#148; agreements that require the
customer to purchase a specified minimum amount of our products. At the same time, we are concentrating on the BIPV market. The physical flexibility, durability and lightweight nature of our solar laminates makes them an attractive value proposition for the BIPV market, particularly commercial rooftop applications, where our solar laminates can be integrated with roofing materials and other building products. We believe the BIPV market, including commercial roof top applications, represents the most attractive opportunity for our solar laminates and we believe we will continue to increase our sales within this market. </font></p> </td> </tr></table>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:8.0pt'><font size=2>&nbsp;</font></p> </td>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:CENTER;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:justify;margin-top:0pt;margin-bottom:0pt'><i><font size=2>We are improving the profitability of our United Solar segment by aggressively reducing the costs and improving the efficiency of our products, which is being partially offset by the impact of ramping our new manufacturing capacity</font></i><font size=2>. We increased our gross profit margin percentage in our United Solar segment by 84% in the quarter ended September&nbsp;30, 2008 (as compared to same period in 2007). This improvement was achieved in part through operation improvement strategies, including raw material cost reductions from supply chain expansion and volume purchasing, and improvements to manufacturing throughput and yield. In addition, in fiscal 2008 we introduced a new solar laminate product with 6% greater power output than its predecessor. We believe that additional cost and efficiency improvements are
achievable, and we have established a long range goal of raising our gross margin to greater than 40%. At the same time, our gross profit margins have been and will be impacted by the higher costs (including lower fixed cost absorption) associated with production volumes during ramp to full capacity at new facilities.</font></p> </td> </tr></table>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:CENTER;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:justify;margin-top:0pt;margin-bottom:0pt'><font size=2><i>Recent global economic, capital markets and credit disruptions pose risks and present opportunities for our business segments</i>.  The risks may include slower economic activity and investment in new construction projects that make use of our products. While credit availability is not presently a limiting factor for our planned manufacturing operations and expansion, the current volatile credit markets may diminish credit availability for some of our customers. Also, we conduct our business in U.S. dollars which may impact our foreign customers and suppliers as a result of changes in the currency exchange rates. These factors may adversely impact our existing or future take-or-pay agreements and require that we reallocate product shipments to other customers or pursue other remedies. Conversely, we are
encouraged by the opportunities for large scale restructuring of the energy infrastructure to increase emphasis on renewable energy, like our solar laminates. Recent government support in this direction includes the solar investment tax credit initiatives enacted as part of the U.S. Emergency Economic Stabilization Act of 2008, including an 8-year extension of the 30%, uncapped investment tax credit for commercial and residential solar installations, and permitted utilities to benefit from these tax credits.  We also foresee increased opportunity to generate cost reductions in our operations as the economic slowdown affects raw material and labor prices. We are actively managing these risks and opportunities as we continue to pursue our growth strategy.</font></p> </td> </tr></table>
</div>


<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.05in;text-align:justify;'><font size=2>&nbsp;</font></p>


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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:8.0pt'><font size=2>&nbsp;</font></p> </td>
        <td width="40" valign=top style='padding:0in 0in 8.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:CENTER;margin-top:0pt;margin-bottom:0pt'><font size=4><b>&#149;</b></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 size=2><i>We are commercializing our NiMH battery and Ovonic Unified Memory (OUM) technologies principally through unconsolidated joint ventures, and we account for</i> </font></p> </td> </tr></table>
</div>


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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>22</font></p>
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<a href="#toc-main"><font size="2"><font face="Times New Roman, Times, Serif" size="1"><u><i>Table of Contents</i></u></font></font></a>
<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

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



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        <td width="40" 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:8.0pt'><font size=2>&nbsp;</font></p> </td>
        <td width="40" valign=top style='padding:0in 0in 8.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:CENTER;margin-top:0pt;margin-bottom:0pt'><font size=4><b>&nbsp;</b></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 size=2><i>our interests in these joint ventures under the accounting model based on the equity method of accounting</i></font><font size=2>. Our principal joint ventures &#150; Cobasys and Ovonyx &#150; were founded to further develop and commercialize technologies we pioneered. In each
case, we participate in the business as equity holders but do not directly manage or have a controlling interest in the entity. We have not reported any earnings or losses from Cobasys because we account for our investment in Cobasys using the modified equity method. We do record royalties from Ovonyx representing 0.5% of their total revenues. </font></p> </td> </tr></table>
</div>



<div align=left>

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        <td width="40" 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:8.0pt'><font size=2>&nbsp;</font></p> </td>
        <td width="40" valign=top style='padding:0in 0in 8.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:CENTER;margin-top:0pt;margin-bottom:0pt'><font size=4><b>&#149;</b></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'><i><font size=2>The members of Cobasys have agreed to explore strategic alternatives regarding Cobasys. </font></i><font size=2>In 2007, the members of Cobasys agreed to explore strategic alternatives regarding Cobasys. At the same time, as previously reported, certain disputes relating to Cobasys are the subject of pending arbitration, and Cobasys and its members have not agreed on a 2008 budget and/or business plan. On February&nbsp;15, 2008 the parties entered into an interim settlement agreement providing for a suspension of the arbitration and a requirement of the parties to use their commercially reasonable best efforts to negotiate definitive agreements for the sale of Cobasys based on a non-binding proposal received from a potential buyer. These sale negotiations have been ongoing, but we cannot assure that the proposed sale will be
completed by the current deadline under our interim settlement agreement, if at all, or on terms favorable to us and OBC. If the proposed sale is not completed, without an agreed budget and business plan for 2008 and resolution of pending disputes subject to the arbitration between us and OBC and CTV, Cobasys may not be able to continue as a going concern. See Part II, Item 1 &#150; Legal Proceedings and Item 1A &#150; Risk Factors.</font></p> </td> </tr></table>
</div>



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        <td width="40" 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:8.0pt'><font size=2>&nbsp;</font></p> </td>
        <td width="40" valign=top style='padding:0in 0in 8.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:CENTER;margin-top:0pt;margin-bottom:0pt'><font size=4><b>&#149;</b></font></p> </td>
        <td  valign=top style='padding:0in 0in .25in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><i><font size=2>We are operating our Ovonic Materials segment at sustainable levels and are continuing to realize value from our technology portfolio. </font></i><font size=2>We have developed proprietary technologies in our Ovonic Materials segment that we believe have substantial value, including technologies for NiMH batteries, solid hydrogen storage, metal hydride fuel cells, and biofuel reformation. As part of the restructuring plan (discussed below), the development activities for these technologies have been substantially balanced with external sources of revenues, such as royalties and development agreements (principally government contracts), to align our development commercialization efforts at sustainable levels. We are continually evaluating commercialization opportunities and strategic alternatives to maximize value for these
technologies, which may include licenses, joint ventures and sales.</font></p> </td> </tr></table>
</div>


<p style=' margin-bottom:18pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><i><font size=2>Key Indicators of Financial Condition and Operating Performance</font></i><font size=2>. In evaluating our business, we use product sales, gross profit, pre-tax income, earnings per share, net income, cash flow from operations and other key performance metrics. We also use production, measured in megawatts (&#147;MW&#148;) per annum, and gross margins on product sales as key performance metrics for our United Solar segment, particularly in connection with the manufacturing expansion in this segment.</font></p>

<p style=' margin-bottom:18pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>In April 2007, we began implementing an organizational restructuring to consolidate and realign our business activities and reduce costs, including consolidating the photovoltaics and machine-building activities into the United Solar segment and reducing costs in both the
</font></p>

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>23</font></p>
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<a href="#toc-main"><font size="2"><font face="Times New Roman, Times, Serif" size="1"><u><i>Table of Contents</i></u></font></font></a>
<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 4pt; TEXT-ALIGN: left">&nbsp;</p>

<p style=' margin-bottom:18pt; margin-top:0pt; text-indent:0in;text-align:justify;'><font size=2>
Ovonic Materials segment and in Corporate Activities. We have incurred total restructuring costs of $15,044 through September&nbsp;30, 2008. We are continuing to evaluate our facilities infrastructure requirements based on our consolidated and realigned business activities to identify additional cost savings opportunities and may undertake additional restructuring activities, and record additional restructuring charges, as a result.
</font></p>

<p style=' margin-bottom:18pt; margin-top:0pt;text-align:left;'>
<b><font size=2>Results of Operations</font></b></p>

<p style=' margin-bottom:18pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>The following table summarizes each of our business segment&#146;s operating results (in thousands) for the three months ended September&nbsp;30, 2008 and 2007, together with the revenue and expenses related to Corporate Activities that are not allocated to the business segments during these periods:</font></p>


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            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:1.0pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td colspan="5" valign=bottom style=' border-bottom:solid black 1.0pt; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt'><font size=2>Revenues</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <td colspan="8" valign=bottom style=' border-bottom:solid black 1.0pt; '>
            <p style='margin-left:0in;text-indent:0pt;text-align: center;margin-top:2pt;margin-bottom:0pt'><font size=2>Income (Loss) from Operations</font></p> </td>
 </tr>


    <tr style='page-break-inside:avoid'>
        <td width="36%" valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:1.0pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td colspan="2" valign=bottom style=' border-bottom:solid black 1.0pt;  '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt'><font size=2>2008</font></p> </td>
        <td width="3%" valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <td colspan="2" valign=bottom style='border-top:solid black 1.0pt; border-left:none;border-bottom:solid black 1.0pt;border-right:none;  '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt'><font size=2>2007</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <td colspan="2" valign=bottom style='border-top:solid black 1.0pt; border-left:none;border-bottom:solid black 1.0pt;border-right:none;  '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt'><font size=2>2008</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-top:solid black 1.0pt;">
            <p style='margin-left:0in;text-indent:0pt;text-align:center;margin-top:1.0pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:center;margin-top:1.0pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <td colspan="5" valign=bottom style=' border-bottom:solid black 1.0pt; '>
            <p style='margin-left:0in;text-indent:0pt;text-align: center;margin-top:2pt;margin-bottom:0pt'><font size=2>2007</font></p> </td> </tr>


    <tr style='page-break-inside:avoid'>
        <TD WIDTH="36%" VALIGN="top" STYLE="background:#EAFFFF">
            <p style='margin-left:.25in;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>United Solar Ovonic</font></p> </td>
        <TD WIDTH="1%" VALIGN="BOTTOM" STYLE="background:#EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>$</font></p> </td>
        <TD WIDTH="8%" VALIGN="BOTTOM" STYLE="border-top:solid black 1.0pt; background:#EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>91,811</font></p> </td>
        <TD WIDTH="3%" VALIGN="BOTTOM" STYLE="background:#EAFFFF;">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD WIDTH="1%" VALIGN="BOTTOM" STYLE="background:#EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>$</font></p> </td>
        <TD WIDTH="8%" VALIGN="BOTTOM" STYLE="border-top:solid black 1.0pt; background:#EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>41,887</font></p> </td>
        <TD WIDTH="6%" VALIGN="BOTTOM" STYLE="background:#EAFFFF;">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD WIDTH="1%" VALIGN="BOTTOM" STYLE="background:#EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>$</font></p> </td>
        <TD WIDTH="8%" VALIGN="BOTTOM" STYLE="border-top: solid black 1.0pt;background: #EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>20,786</font></p> </td>
        <TD WIDTH="3%" VALIGN="BOTTOM" STYLE="border-top:solid black 1.0pt; background:#EAFFFF">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD WIDTH="2%" VALIGN="BOTTOM" STYLE="background:#EAFFFF;">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD WIDTH="2%" VALIGN="BOTTOM" STYLE="background:#EAFFFF">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD WIDTH="1%" VALIGN="BOTTOM" STYLE="background:#EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>$</font></p> </td>
        <TD WIDTH="8%" VALIGN="BOTTOM" STYLE="background: #EAFFFF">
            <p style='margin-left:0pt;text-indent:2.25pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>(468</font></p> </td>
        <TD WIDTH="1%" VALIGN="BOTTOM" STYLE="border-top:solid black 1.0pt; background:#EAFFFF">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>)</font></p> </td>
         </tr>
    <tr style='page-break-inside:avoid'>
        <td width="36%" valign=top >
            <p style='margin-left:.25in;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>Ovonic Materials</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>3,879</font></p> </td>
        <td width="3%" valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td width="1%" valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>5,092</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>254</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td width="1%" valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>(700</font></p> </td>
        <td width="1%" valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>)</font></p> </td>
         </tr>
    <tr style='page-break-inside:avoid'>
        <td width="36%" valign=top style='background:#EAFFFF'>
            <p style='margin-left:.25in;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>Corporate activities</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>75</font></p> </td>
        <td width="3%" valign=bottom style='background:#EAFFFF; '>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td width="1%" valign=bottom style='background:#EAFFFF; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>169</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF;">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF;">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>(7,327</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF;">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>)</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF;">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF;">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td width="1%" valign=bottom style='background:#EAFFFF'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>(8,833</font></p> </td>
        <td width="1%" valign=bottom style='background:#EAFFFF; '>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>)</font></p> </td>
         </tr>
    <tr style='page-break-inside:avoid'>
        <td width="36%" valign=top >
            <p style='margin-left:.25in;text-align:left;margin-top:1.0pt;margin-bottom: 0in'><font size=2>Consolidating entries</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: solid black 1.0pt;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: solid black 1.0pt;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt'><font size=2>&#151;</font></p> </td>
        <td width="3%" valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <td width="1%" valign=bottom style='border-bottom: solid black 1.0pt; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: solid black 1.0pt;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>(106</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: solid white 1.0pt;">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>)</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: solid black 1.0pt;">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: solid black 1.0pt;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>59</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <td width="1%" valign=bottom style='border-bottom: solid black 1.0pt; '>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: solid black 1.0pt;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>48</font></p> </td>
        <td width="1%" valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
         </tr>
    <tr style='page-break-inside:avoid'>
        <td width="36%" valign=top style='background:#EAFFFF'>
            <p style='margin-left:.25in;text-align:left;margin-top:1.5pt;margin-bottom: 0in'><font size=2>Consolidated</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: double black 2.25pt;background: #EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>$</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: double black 2.25pt;background: #EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>95,765</font></p> </td>
        <td width="3%" valign=bottom style='background:#EAFFFF; '>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <td width="1%" valign=bottom style='border-bottom: double black 2.25pt;background: #EAFFFF'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>$</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: double black 2.25pt;background: #EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>47,042</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: double black 2.25pt;background: #EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>$</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: double black 2.25pt;background: #EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>13,772</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF;">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF;">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF;">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <td width="1%" valign=bottom style='border-bottom: double black 2.25pt;background: #EAFFFF'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>$</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: double black 2.25pt;background: #EAFFFF">
            <p style='margin-left:0pt;text-indent:2.25pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>(9,953</font></p> </td>
        <td width="1%" valign=bottom style='border-bottom: double #EAFFFF 2.25pt;background:#EAFFFF'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>)</font></p> </td>
         </tr></table>
</div>

<p style=' margin-bottom:18pt; margin-top:18pt;text-align:justify;'><i><font size=2>Three Months Ended September</font></i><font size=2>&nbsp;</font><i><font size=2>30, 2008 Compared to Three Months Ended September</font></i><font size=2>&nbsp;</font><i><font size=2>30, 2007</font></i></p>

<p style=' margin-bottom:14pt; margin-top:0pt;text-align:justify;'><u><i><font size=2>United Solar Ovonic Segment</font></i></u></p>


<div align=left>

<TABLE BORDER="0" CELLSPACING="0" CELLPADDING="0" WIDTH="98%" STYLE="margin-left:2.9pt;border-collapse:collapse;">
    <tr style='page-break-inside:avoid; '>
        <TD VALIGN="bottom">
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td colspan="5" valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt'><font size=2>Three Months Ended</font><br> <font size=2>September&nbsp;30,</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <TD VALIGN="bottom">
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:1.0pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td colspan="2" valign=bottom style=' border-bottom:solid black 1.0pt; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt'><font size=2>2008</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <td colspan="2" valign=bottom style=' border-bottom:solid black 1.0pt; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt'><font size=2>2007</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <TD VALIGN="bottom">
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td colspan="5" valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt'><font size=2>(in thousands)</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <TD WIDTH="72%" VALIGN="top" STYLE="background:#EAFFFF">
            <p style='margin-left:.25in;text-indent:-.25in;text-align:left;margin-top:2pt;margin-bottom:0pt'><font SIZE=2>REVENUES</font></p> </td>
        <TD WIDTH="1%" VALIGN="BOTTOM" STYLE="background:#EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD WIDTH="8%" VALIGN="BOTTOM" STYLE="background:#EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD WIDTH="7%" VALIGN="BOTTOM" STYLE="background:#EAFFFF">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD WIDTH="1%" VALIGN="BOTTOM" STYLE="background:#EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD WIDTH="8%" VALIGN="BOTTOM" STYLE="background:#EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD WIDTH="1%" VALIGN="BOTTOM" STYLE="background:#EAFFFF">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <TD VALIGN="top">
            <p style='margin-left:.35in;text-indent:-.15in;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>Product sales</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>$</font></p> </td>
        <td width="8%" valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>89,450</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>$</font></p> </td>
        <td width="8%" valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>39,870</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <TD VALIGN="top" STYLE="background:#EAFFFF">
            <p style='margin-left:.35in;text-indent:-.15in;text-align:left;margin-top:1.0pt;margin-bottom: 0in'><font size=2>Revenues from product development agreements</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: solid black 1.0pt; background:#EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td width="8%" valign=bottom style='border-bottom: solid black 1.0pt; background:#EAFFFF'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>2,361</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: solid black 1.0pt; background:#EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td width="8%" valign=bottom style='border-bottom: solid black 1.0pt; background:#EAFFFF'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>2,017</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <TD VALIGN="top">
            <p style='margin-left:.25in;text-indent:-.25in;text-align:left;margin-top:1.5pt;margin-bottom: 0in'><font SIZE=2>TOTAL REVENUES</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: double black 2.25pt;background: white">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>$</font></p> </td>
        <td width="8%" valign=bottom style='border-bottom: double black 2.25pt;background: white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>91,811</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: double black 2.25pt;background: white">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>$</font></p> </td>
        <td width="8%" valign=bottom style='border-bottom: double black 2.25pt;background: white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>41,887</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <TD VALIGN="top" STYLE="background:#EAFFFF">
            <p style='margin-left:.25in;text-indent:-.25in;text-align:left;margin-top:2pt;margin-bottom:0pt'><font SIZE=2>EXPENSES</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td width="8%" valign=bottom style='background:#EAFFFF'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td width="8%" valign=bottom style='background:#EAFFFF'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <TD VALIGN="top">
            <p style='margin-left:.35in;text-indent:-.15in;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>Cost of product sales</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>$</font></p> </td>
        <td width="8%" valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>59,589</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>$</font></p> </td>
        <td width="8%" valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>32,622</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <TD VALIGN="top" STYLE="background:#EAFFFF">
            <p style='margin-left:.35in;text-indent:-.15in;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>Cost of revenues from product development agreements</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td width="8%" valign=bottom style='background:#EAFFFF'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>1,555</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td width="8%" valign=bottom style='background:#EAFFFF'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>1,150</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <TD VALIGN="top">
            <p style='margin-left:.35in;text-indent:-.15in;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>Product development and research</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td width="8%" valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>984</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td width="8%" valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>1,125</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <TD VALIGN="top" STYLE="background:#EAFFFF">
            <p style='margin-left:.35in;text-indent:-.15in;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>Preproduction costs</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td width="8%" valign=bottom style='background:#EAFFFF'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>1,977</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td width="8%" valign=bottom style='background:#EAFFFF'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>2,545</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <TD VALIGN="top">
            <p style='margin-left:.35in;text-indent:-.15in;text-align:left;margin-top:1.0pt;margin-bottom: 0in'><font size=2>Selling, general and administrative expenses</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: solid black 1.0pt;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td width="8%" valign=bottom style='border-bottom: solid black 1.0pt; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>6,920</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: solid black 1.0pt;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td width="8%" valign=bottom style='border-bottom: solid black 1.0pt; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>4,913</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <TD VALIGN="top" STYLE="background:#EAFFFF">
            <p style='margin-left:.25in;text-indent:-.25in;text-align:left;margin-top:1.5pt;margin-bottom: 0in'><font SIZE=2>TOTAL EXPENSES</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: double black 2.25pt;background: #EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>$</font></p> </td>
        <td width="8%" valign=bottom style='border-bottom: double black 2.25pt;background: #EAFFFF'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>71,025</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: double black 2.25pt;background: #EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>$</font></p> </td>
        <td width="8%" valign=bottom style='border-bottom: double black 2.25pt;background: #EAFFFF'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>42,355</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid; '>
        <TD VALIGN="top">
            <p style='margin-left:.25in;text-indent:-.25in;text-align:left;margin-top:1.5pt;margin-bottom: 0in'><font SIZE=2>INCOME (LOSS) FROM OPERATIONS</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: double black 2.25pt;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>$</font></p> </td>
        <td width="8%" valign=bottom style='border-bottom: double black 2.25pt; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>20,786</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: double black 2.25pt;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>$</font></p> </td>
        <td width="8%" valign=bottom style='border-bottom: double black 2.25pt; '>
            <p style='margin-left:0pt;text-indent:2.25pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>(468</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: double white 2.25pt;">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>)</font></p> </td> </tr></table>
</div>

<p style=' margin-bottom:10pt; margin-top:4pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>24</font></p>
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<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>
<PAGE>
<hr align="center" width="99%" noshade size="2">
<div style="PAGE-BREAK-AFTER: always">&nbsp;</div>
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<a href="#toc-main"><font size="2"><font face="Times New Roman, Times, Serif" size="1"><u><i>Table of Contents</i></u></font></font></a>
<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

<p style=' margin-bottom:18pt; margin-top:18pt; text-indent:0.5in;text-align:justify;'><font size=2>Our United Solar Ovonic segment&#146;s revenues increased $49,924 and operating income increased $21,254 in 2008 as compared to 2007, as we continued to rapidly expand our manufacturing capacity and product sales. </font></p>

<p style=' margin-bottom:18pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'>
<font size=2>The increase in revenues in 2008 was primarily attributable to a significant volume increase in PV product sales ($49,900), enhanced by favorable product and price mix ($498) from the introduction of 144W product in the second quarter of 2008.  The cost of product sales increased ($26,967), reflecting this higher product sales volume, including the operating costs for our expanded production capacity.</font></p>

<p style=' margin-bottom:18pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>Cost of product sales increased $26,967, of which approximately $37,600 was a direct result of the increased sales volume, reduced by improved customer mix ($5,500) and favorable operating efficiencies ($5,600). The combined effect of favorable mix and operating efficiencies resulted in an improvement of margins on product sales from 18.1% in 2007 to 33.4% in 2008. Margins were positively impacted by the faster ramp up of our operations at Greenville and Tijuana manufacturing facilities. Our gross profit margins will be impacted by higher costs associated with production volumes as we ramp up production at our new manufacturing facilities.</font></p>

<p style=' margin-bottom:18pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>The majority of our combined product development and research expenses are funded by government programs under contracts from the U.S. Air Force and the Department of Energy&#146;s Solar America Initiative. We continue to invest in product development and research to improve the throughput of our PV cell manufacturing equipment, reduce the cost of production and increase the sunlight-to-electricity conversion efficiency of our PV laminates.</font></p>

<p style=' margin-bottom:18pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>Preproduction costs (consisting of new employee training, facilities preparation, set-up materials and supplies) decreased as we neared completion on the expansions at our Michigan facilities ($470) and Tijuana, Mexico ($98) facility. We will incur preproduction costs with each new manufacturing facility until we commence production and the majority of the employee training is complete. These costs are expected to be substantial as we continue to rapidly expand our manufacturing capacity from the current 118MW per annum to an expected capacity exceeding 420MW by 2010, 720MW by 2011 and then 1GW by 2012.</font></p>

<p style=' margin-bottom:18pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>Consistent with our sales growth, our operating, selling, general and administrative expenses increased due to increased employee wages and related benefits ($564), sales and marketing ($250), facility costs ($280) and support services ($476). We also disposed of manufacturing equipment no longer in use ($285). As our sales continue to grow, selling, general and administrative expenses, particularly sales and marketing, are expected to increase as we develop the strategic infrastructure to achieve and support those sales.</font></p>

<p style=' margin-bottom:18pt; margin-top:0pt;text-align:justify;'><u><i><font size=2>
</font></i></u></p>

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>25</font></p>
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<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>
<PAGE>
<hr align="center" width="99%" noshade size="2">
<div style="PAGE-BREAK-AFTER: always">&nbsp;</div>
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<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>
<a href="#toc-main"><font size="2"><font face="Times New Roman, Times, Serif" size="1"><u><i>Table of Contents</i></u></font></font></a>
<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

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


<p style=' margin-bottom:18pt; margin-top:0pt;text-align:justify;'><u><i><font size=2>Ovonic Materials Segment</font></i></u></p>

<div align=left>

<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="98%" STYLE="margin-left:2.9pt;border-collapse:collapse">
    <tr style='page-break-inside:avoid'>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td colspan="5" valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt'><font size=2>Three Months Ended</font><br> <font size=2>September&nbsp;30,</font></p> </td>
        <TD VALIGN="BOTTOM" ALIGN="LEFT">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:1.0pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td colspan="2" valign=bottom style=' border-bottom:solid black 1.0pt; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt'><font size=2>2008</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <td colspan="2" valign=bottom style=' border-bottom:solid black 1.0pt; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt'><font size=2>2007</font></p> </td>
        <TD VALIGN="BOTTOM" ALIGN="LEFT">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td colspan="5" valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt'><font size=2>(in thousands)</font></p> </td>
        <TD VALIGN="BOTTOM" ALIGN="LEFT">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <TD WIDTH="72%" VALIGN="BOTTOM" STYLE="background:#EAFFFF">
            <p style='margin-left:.25in;text-indent:-.25in;text-align:left;margin-top:2pt;margin-bottom:0pt'><font SIZE=2>REVENUES</font></p> </td>
        <TD WIDTH="1%" VALIGN="BOTTOM" STYLE="background:#EAFFFF;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD WIDTH="8%" VALIGN="BOTTOM" STYLE="background:#EAFFFF;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD WIDTH="7%" VALIGN="BOTTOM" STYLE="background:#EAFFFF;">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD WIDTH="1%" VALIGN="BOTTOM" STYLE="background:#EAFFFF;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD WIDTH="8%" VALIGN="BOTTOM" STYLE="background:#EAFFFF;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD WIDTH="1%" VALIGN="BOTTOM" STYLE="background:#EAFFFF;" ALIGN="LEFT">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:.35in;text-indent:-.15in;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>Product sales</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>$</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>1,351</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>$</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>2,615</font></p> </td>
        <TD VALIGN="BOTTOM" ALIGN="LEFT">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF">
            <p style='margin-left:.35in;text-indent:-.15in;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>Royalties</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>1,345</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF;">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>1,015</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF;" ALIGN="LEFT">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:.35in;text-indent:-.15in;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>Revenues from product development agreements</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>910</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>860</font></p> </td>
        <TD VALIGN="BOTTOM" ALIGN="LEFT">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF">
            <p style='margin-left:.35in;text-indent:-.15in;text-align:left;margin-top:1.0pt;margin-bottom: 0in'><font size=2>Other revenues</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: solid black 1.0pt; background:#EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: solid black 1.0pt; background:#EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>273</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF;">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: solid black 1.0pt; background:#EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: solid black 1.0pt; background:#EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>602</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF;" ALIGN="LEFT">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:.25in;text-indent:-.25in;text-align:left;margin-top:1.5pt;margin-bottom: 0in'><font SIZE=2>TOTAL REVENUES</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: double black 2.25pt;background: white">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>$</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: double black 2.25pt;background: white">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>3,879</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: double black 2.25pt;background: white">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>$</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: double black 2.25pt;background: white">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>5,092</font></p> </td>
        <TD VALIGN="BOTTOM" ALIGN="LEFT">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF">
            <p style='margin-left:.25in;text-indent:-.25in;text-align:left;margin-top:2pt;margin-bottom:0pt'><font SIZE=2>EXPENSES</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF;">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF;" ALIGN="LEFT">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:.35in;text-indent:-.15in;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>Cost of product sales</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>$</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>1,437</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>$</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>2,568</font></p> </td>
        <TD VALIGN="BOTTOM" ALIGN="LEFT">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF">
            <p style='margin-left:.35in;text-indent:-.15in;text-align:left;margin-top:2pt;margin-bottom:0pt;line-height:102.6%'><font size=2>Cost of revenues from product development agreements</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;line-height:102.6%'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;line-height:102.6%'><font size=2>627</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF;">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;line-height:102.6%'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt;line-height:102.6%'><font size=2>577</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF;" ALIGN="LEFT">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:.35in;text-indent:-.15in;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>Product development and research</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>1,206</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>2,338</font></p> </td>
        <TD VALIGN="BOTTOM" ALIGN="LEFT">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF">
            <p style='margin-left:.35in;text-indent:-.15in;text-align:left;margin-top:1.0pt;margin-bottom: 0in'><font size=2>Selling, general and administrative expenses</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: solid black 1.0pt; background:#EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: solid black 1.0pt; background:#EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>355</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF;">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: solid black 1.0pt; background:#EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: solid black 1.0pt; background:#EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>309</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF;" ALIGN="LEFT">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:.25in;text-indent:-.25in;text-align:left;margin-top:1.5pt;margin-bottom: 0in'><font SIZE=2>TOTAL EXPENSES</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: double black 2.25pt;background: white">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>$</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: double black 2.25pt;background: white">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>3,625</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: double black 2.25pt;background: white">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>$</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: double black 2.25pt;background: white">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>5,792</font></p> </td>
        <TD VALIGN="BOTTOM" ALIGN="LEFT">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF">
            <p style='margin-left:.25in;text-indent:-.25in;text-align:left;margin-top:1.5pt;margin-bottom: 0in'><font SIZE=2>INCOME (LOSS) FROM OPERATIONS</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: double black 2.25pt; background:#EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>$</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: double black 2.25pt; background:#EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>254</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF;">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: double black 2.25pt; background:#EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>$</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: double black 2.25pt; background:#EAFFFF">
            <p style='margin-left:0pt;text-indent:2.25pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>(700</font></p> </td>
        <TD VALIGN="Middle" STYLE="background:#EAFFFF;" ALIGN="LEFT">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>)</font></p> </td> </tr></table>
</div>

<p style=' margin-bottom:18pt; margin-top:18pt; text-indent:0.5in;text-align:justify;'><font size=2>Our Ovonic Materials results improved due principally to the restructuring plan implemented in late fiscal 2007 that substantially reduced our product development expenses.</font></p>

<p style=' margin-bottom:18pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>Sales for our Ovonic Materials segment decreased primarily as a result of decreased sales ($1,136) to its largest customer. The sales price of our high performance nickel hydroxide is largely dependent upon the cost of the raw materials used to produce it. The price of nickel, a major component of our nickel hydroxide, was 40% less at September&nbsp;30, 2008 than at September&nbsp;30, 2007.</font></p>

<p style=' margin-bottom:18pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>Combined product development and research expenses decreased substantially to $1,833 in 2008 from $2,915 in 2007, reflecting primarily the savings associated with the restructuring plan initiated in late fiscal 2007. </font></p>

<p style=' margin-bottom:18pt; margin-top:0pt;text-align:justify;'><u><i><font size=2>
</font></i></u></p>

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>26</font></p>
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<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>
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<hr align="center" width="99%" noshade size="2">
<div style="PAGE-BREAK-AFTER: always">&nbsp;</div>
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<a href="#toc-main"><font size="2"><font face="Times New Roman, Times, Serif" size="1"><u><i>Table of Contents</i></u></font></font></a>
<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

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


<p style=' margin-bottom:14pt; margin-top:0pt;text-align:justify;'><u><i><font size=2>Corporate activities</font></i></u></p>

<div align=left>

<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="90%" STYLE="margin-left:2.9pt;border-collapse:collapse">
    <tr style='page-break-inside:avoid'>
        <TD VALIGN="bottom">
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td colspan="5" valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt'><font size=2>Three Months Ended</font><br> <font size=2>September&nbsp;30,</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <TD VALIGN="bottom">
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:1.0pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td colspan="2" valign=bottom style=' border-bottom:solid black 1.0pt; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt'><font size=2>2008</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <td colspan="2" valign=bottom style=' border-bottom:solid black 1.0pt; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt'><font size=2>2007</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <TD VALIGN="bottom">
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <td colspan="5" valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt'><font size=2>(in thousands)</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <TD WIDTH="72%" VALIGN="top" STYLE="background:#EAFFFF">
            <p style='margin-left:.25in;text-indent:-.25in;text-align:left;margin-top:1.5pt;margin-bottom: 0in'><font SIZE=2>TOTAL REVENUES</font></p> </td>
        <TD WIDTH="1%" VALIGN="BOTTOM" STYLE="border-bottom: double black 2.25pt;background:#EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>$</font></p> </td>
        <TD WIDTH="8%" VALIGN="BOTTOM" STYLE="border-bottom: double black 2.25pt;background:#EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>75</font></p> </td>
        <TD WIDTH="7%" VALIGN="BOTTOM" STYLE="background:#EAFFFF;">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <TD WIDTH="1%" VALIGN="BOTTOM" STYLE="border-bottom: double black 2.25pt;background:#EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>$</font></p> </td>
        <TD WIDTH="8%" VALIGN="BOTTOM" STYLE="border-bottom: double black 2.25pt;background:#EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>169</font></p> </td>
        <TD WIDTH="1%" VALIGN="BOTTOM" STYLE="background:#EAFFFF;">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <TD VALIGN="top">
            <p style='margin-left:.25in;text-indent:-.25in;text-align:left;margin-top:2pt;margin-bottom:0pt'><font SIZE=2>EXPENSES</font></p> </td>
        <td width="1%" valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <TD VALIGN="top" STYLE="background:#EAFFFF">
            <p style='margin-left:.35in;text-indent:-.15in;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>Selling, general and administrative expenses</font></p> </td>
        <td width="1%" valign=bottom style='background:#EAFFFF'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>$</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>7,158</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF;">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>$</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>6,486</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF;">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <TD VALIGN="top">
            <p style='margin-left:.35in;text-indent:-.15in;text-align:left;margin-top:1.0pt;margin-bottom: 0in'><font size=2>Restructuring Costs </font></p> </td>
        <td width="1%" valign=bottom style='border-bottom: solid black 1.0pt; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: solid black 1.0pt;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>244</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: solid black 1.0pt;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: solid black 1.0pt;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>2,516</font></p> </td>
        <TD VALIGN="BOTTOM">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <TD VALIGN="top" STYLE="background:#EAFFFF">
            <p style='margin-left:.25in;text-indent:-.25in;text-align:left;margin-top:1.5pt;margin-bottom: 0in'><font SIZE=2>TOTAL EXPENSES</font></p> </td>
        <td width="1%" valign=bottom style='border-bottom: double black 2.25pt;background: #EAFFFF'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>$</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: double black 2.25pt;background: #EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>7,402</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF;">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: double black 2.25pt;background: #EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>$</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: double black 2.25pt;background: #EAFFFF">
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>9,002</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="background:#EAFFFF;">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0.5pt'><font size=2>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <TD VALIGN="top">
            <p style='margin-left:.25in;text-indent:-.25in;text-align:left;margin-top:1.5pt;margin-bottom: 0in'><font SIZE=2>LOSS FROM OPERATIONS</font></p> </td>
        <td width="1%" valign=bottom style='border-bottom: double black 2.25pt; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>$</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: double black 2.25pt;">
            <p style='margin-left:0pt;text-indent:2.25pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>(7,327</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: double white 2.25pt;">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>)</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: double black 2.25pt;">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>$</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: double black 2.25pt;">
            <p style='margin-left:0pt;text-indent:2.25pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>(8,833</font></p> </td>
        <TD VALIGN="BOTTOM" STYLE="border-bottom: double white 2.25pt;">
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>)</font></p> </td> </tr></table>
</div>

<p style=' margin-bottom:18pt; margin-top:18pt; text-indent:0.5in;text-align:justify;'><font size=2>Revenues provided to certain affiliates consist primarily of facilities and miscellaneous administrative and laboratory services. </font></p>

<p style=' margin-bottom:18pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>In fiscal 2007, we began implementing an organizational restructuring to consolidate and realign our business activities and reduce costs, principally in the Ovonic Materials segment and in Corporate Activities. The initial phase of this plan was substantially completed during fiscal 2007, and we incurred restructuring costs in fiscal 2008 in connection with this phase. As a result, restructuring charges decreased significantly ($2,271) during the quarter ended September&nbsp;30, 2008.</font></p>

<p style=' margin-bottom:18pt; margin-top:0pt;text-align:justify;'><u><i><font size=2>Other Income/Expense</font></i></u></p>

<p style=' margin-bottom:18pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>Other income (expense) decreased to ($1,054) in 2008 from $2,392 in 2007, due to interest incurred on our convertible senior notes ($2,372) and an increase in other nonoperating expense primarily due to the other-than-temporary impairment ($964) of Lehman Brothers bonds we hold. </font></p>

<p style=' margin-bottom:18pt; margin-top:0pt;text-align:justify;'><b><font size=2>Liquidity and Capital Resources</font></b></p>

<p style=' margin-bottom:18pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>Our primary liquidity needs are to fund capital expenditures associated with expansion of our United Solar segment&#146;s manufacturing capacity and support our working capital requirements. Our principal sources of liquidity are cash, cash equivalents and short-term investments (which principally represent the proceeds from our June 2008 offering of convertible debt and common stock), cash flow from operations, and borrowing available under our new credit facility. We believe that cash, cash equivalents, investments, cash flows from operations and borrowing under our credit facility will be sufficient to meet our liquidity needs for current operations and expansion for the foreseeable future.</font></p>

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>27</font></p>
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<p style=' margin-bottom:18pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>As of September&nbsp;30, 2008, we had $509,670 in cash, cash equivalents, and short-term and long-term investments consisting of Floating Rate Corporate Notes (&#147;FRN&#146;s&#148;), auction rate certificates (&#147;ARC&#146;s&#148;), corporate notes and money market funds. All short-term investments
are classified as &#147;available-for-sale.&#148;  The Company has $31,451 in ARC&#146;s classified as long-term investments at September&nbsp;30, 2008. The investments have maturities up to 20 months, except for the ARC&#146;s which have maturities from 26 to 38 years. At September&nbsp;30, 2008, we had consolidated working capital of $515,606.</font></p>

<p style=' margin-bottom:18pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>An adverse ruling in the pending Cobasys arbitration could adversely affect our liquidity position, while a successful completion of a strategic transaction involving Cobasys could favorably affect our liquidity position. See Part II, Item 1 &#150; Legal Proceedings and Item 1A &#150; Risk Factors.</font></p>

<p style=' margin-bottom:18pt; margin-top:0pt;text-align:justify;'><i><font size=2>Cash Flows</font></i></p>

<p style=' margin-bottom:18pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>Net cash provided by our operating activities was $26,532 in 2008 compared to net cash used of $14,808 in 2007. The significant improvement in our operating results is the key factor in our increase in operating cash flows. The operating cash flows in our United Solar segment will be impacted by the change in working capital as we expand sales and production. We anticipate that future accounts receivable and inventory balances will increase as we continue to expand our manufacturing and sales activities.</font></p>

<p style=' margin-bottom:18pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>Net cash used in investing activities was $45,209 in 2008 as compared to $4,861 provided by investing activities in the corresponding period in 2007. This decrease was principally due to reduced sales of investments in 2008. There was an increase in capital spending ($46,909 in 2008 compared to $30,118 in 2007), principally associated with the timing of the expenditures for the expansion of our United Solar segment&#146;s manufacturing capacity. We will continue to invest in the expansion of our facilities.</font></p>

<p style=' margin-bottom:18pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>For details of our cash flows, see the Consolidated Statements of Cash Flows in our Consolidated Financial Statements. </font></p>

<p style=' margin-bottom:18pt; margin-top:0pt;text-align:justify;'><i><font size=2>Restructuring Reserve</font></i></p>

<p style=' margin-bottom:18pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>The Company has a balance of $915 remaining in this reserve at September&nbsp;30, 2008, of which $517 will be utilized or paid in the next year.</font></p>

<p style=' margin-bottom:18pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>For details regarding the restructuring reserve, see Note I to the Consolidated Financial Statements.</font></p>

<p style=' margin-bottom:18pt; margin-top:0pt;text-align:justify;'><i><font size=2>Short-term Borrowings</font></i></p>

<p style=' margin-bottom:18pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>On February&nbsp;4, 2008, our subsidiaries United Solar Ovonic LLC and United Solar Ovonic Corporation entered into Secured Credit Facility Agreements consisting of a $30&nbsp;million revolving line of credit to finance domestic activities and a separate $25&nbsp;million
</font></p>

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>28</font></p>
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<font size=2>revolving line of credit provided under the United States Export-Import Bank&#146;s fast track working capital guarantee program to finance foreign activities. Availability of financing under the lines of credit will be determined by reference to a borrowing base comprised of domestic  inventory and receivables and foreign inventory and receivables, respectively. At September&nbsp;30, 2008, there were not any outstanding borrowings on the line of credit. The facilities also contain an aggregate $10&nbsp;million sub-limit for standby letters of credit and there were approximately $1,728 of standby letters of credit outstanding at September&nbsp;30, 2008.</font></p>

<p style=' margin-bottom:18pt; margin-top:0pt;text-align:justify;'><i><font size=2>Convertible Senior Notes</font></i></p>

<p style=' margin-bottom:18pt; margin-top:0pt; margin-left:0.03in; text-indent:0.5in;text-align:justify;'><font size=2>On June&nbsp;24, 2008, we completed our offering of $316,250 of Convertible</font><i><font size=2> </font></i><font size=2>Senior Notes. The notes bear interest at a rate of 3.00% per year, payable on June&nbsp;15 and December&nbsp;15 of each year, commencing on December 15, 2008. The notes mature on June&nbsp;15, 2013. Holders of the notes may, under certain circumstances at their option, convert the principal amount of their notes into cash and, with respect to any amounts in excess of the principal amount, shares of ECD&#146;s common stock initially at a conversion rate of 10.8932 shares (equivalent to an initial conversion price of approximately $91.80 per share) per $1,000 principal amount of notes. The notes are also convertible on this basis at any time on or after March 15, 2013 and prior to the close of business on the business day immediately preceding the
maturity date. The applicable conversion rate will be subject to adjustments in certain circumstances. The notes are senior unsecured obligations of ECD and rank equal in right of payment with any future senior unsecured debt of ECD, and senior in right of payment to all of ECD&#146;s existing and future debt, if any, that is subordinated to the notes.</font></p>

<p style=' margin-bottom:18pt; margin-top:0pt;text-align:justify;'><i><font size=2>Joint Ventures</font></i></p>

<p style=' margin-bottom:18pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>Through September 2007, CTV funded Cobasys&#146; operations in exchange for a preferred interest in Cobasys for which it is entitled to a priority right of repayment in certain situations. From October 2007 through January 2008, CTV declined to purchase preferred interests and funded Cobasys in a manner that in OBC&#146;s view violated the Operating Agreement and applicable Michigan law. Since February 2008, Cobasys has received funding support from a customer in the form of a loan for capital equipment purchases and a price increase on products sold to the customer, during which time Cobasys management has not sought any funding from the members of Cobasys. Further, Cobasys and its members have not agreed on a 2008 budget and/or business plan. In 2007, CTV and OBC agreed to explore strategic alternatives regarding Cobasys, which has resulted in us, OBC and CTV commencing negotiations
for the sale of Cobasys with a potential buyer in early 2008.  These negotiations have been ongoing, but we cannot assure that the proposed sale will be completed by the current deadline under our interim settlement agreement or on terms favorable to us and OBC, or if it will be completed at all. If the proposed sale is not completed, without an agreed budget and business plan and resolution of pending disputes subject to the arbitration between us and OBC and CTV, Cobasys may not be able to continue as a going concern. See Part II, Item 1 &#150; Legal Proceedings and Item 1A &#150; Risk Factors.</font></p>

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>29</font></p>
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<p style=' margin-bottom:18pt; margin-top:0pt;text-align:justify;'><i><font size=2>Contractual Obligations</font></i></p>

<p style=' margin-bottom:18pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>The Company announced expansion plans to expand its manufacturing capacity from 118MW of nameplate capacity at June&nbsp;30, 2008, to 420MW by the end of 2010, 720MW by the end of 2011 and to 1GW by the end of 2012. As of September&nbsp;30, 2008, the Company had purchase commitments of approximately $69,381 for its announced expansion, and the
Company presently intends to fund this additional expansion through existing funds and cash from operations.</font></p>

<p style=' margin-bottom:18pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>The Company, in the ordinary course of business, enters into purchase commitments for raw materials. The Company also enters into purchase commitments for capital equipment, including subcontracts for the purchase of components for the new solar manufacturing equipment being installed in Greenville, Michigan.</font></p>

<p style=' margin-bottom:18pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>The increase in purchase commitments is primarily due to the aforementioned expansion plan, additional commitments to purchase steel for the new Auburn Hills facility, and construction and equipment commitments for the new Greenville and Tijuana facilities.</font></p>

<p style=' margin-bottom:18pt; margin-top:0pt;text-align:justify;'><b><font size=2>Significant Accounting Policies</font></b></p>

<p style=' margin-bottom:18pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>Our significant accounting policies are more fully described in Note&nbsp;A, &#147;The Company and Summary of Accounting Policies,&#148; of the Notes to Consolidated Financial Statements for the year ended June 30, 2008 as reported in our Annual Report on Form 10-K. The only change to our significant accounting policies since June 30, 2008 has been the adoption of SFAS 157. Certain of our accounting policies require management to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. These estimates and assumptions are based on our historical experience, the terms of existing contracts, our evaluation of trends in the industry, information provided by our customers and suppliers and information available from other
outside sources, as appropriate. However, they are subject to an inherent degree of uncertainty. As a result, actual results in these areas may differ significantly from our estimates. </font></p>

<p style=' margin-bottom:18pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>We consider an accounting estimate to be significant if it requires us to make assumptions about matters that were uncertain at the time the estimate was made and changes in the estimate would have had a significant impact on our consolidated financial position or results of operations.</font></p>

<p style=' margin-bottom:18pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>For recently issued accounting pronouncements and their potential effect on our financial statements, refer to &#147;Recent Pronouncements&#148; in Note A of the Notes to Consolidated Financial Statements in this Form 10-Q. </font></p>


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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>30</font></p>
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<p style=' margin-bottom:18pt; margin-top:0pt;text-align:justify;'><b><font size=2>Forward-Looking Statements</font></b></p>

<p style=' margin-bottom:18pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>This Quarterly Report on Form 10-Q includes &#147;forward-looking statements&#148; that involve risks and uncertainties. These forward-looking statements are made pursuant to safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements concerning our plans, objectives, goals, strategies, future events, future sales or performance, capital expenditures, financing needs, plans or intentions relating to acquisitions, business trends and other information that is not historical information. When used in this prospectus, the words &#147;estimates,&#148; &#147;expects,&#148; &#147;anticipates,&#148; &#147;projects,&#148; &#147;plans,&#148; &#147;intends,&#148; &#147;believes,&#148; &#147;forecasts,&#148; &#147;foresees,&#148; &#147;likely,&#148; &#147;may,&#148; &#147;should,&#148; &#147;goal,&#148; &#147;target&#148; and
variations of such words or similar expressions are intended to identify forward-looking statements. All forward-looking statements are based upon information available to us on the date of this report.</font></p>

<p style=' margin-bottom:18pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>These forward-looking statements are subject to risks, uncertainties and other factors, many of which are outside of our control, that could cause actual results to differ materially from the results discussed in the forward-looking statements, including, among other things, the matters discussed in this Item 1A, &#147;Risk Factors,&#148; of our Annual Report on Form 10-K for fiscal year ended June&nbsp;30, 2008, and in other filings with the SEC from time to time. Any or all of these factors could cause our actual results and financial or legal status for future periods to differ materially from those expressed or referred to in any forward-looking statement. All written or oral forward-looking statements attributable to us are expressly qualified in their entirety by these cautionary statements. Forward-looking statements speak only as of the date on which they are made. Except as
required by law, we undertake no obligation to update, amend or clarify forward-looking statements, whether as a result of new information, future events or otherwise.</font></p>

<p style=' margin-bottom:14pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>There may be other factors that could cause our actual results to differ materially from the results referred to in the forward-looking statements. We undertake no obligation to publicly update or revise forward-looking statements to reflect events or circumstances after the date made or to reflect the occurrence of unanticipated events, except as required by law.</font></p>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><u><b><font size=2>Item 3</font></b></u><b><font size=2>.</font></b></p> </td>
        <td width="90%" nowrap valign=top style='padding:8.0pt 0in 8.0pt 0in; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><u><b><font size=2>Quantitative and Qualitative Disclosures about Market Risk</font></b></u></p> </td> </tr></table>
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<p style=' margin-bottom:18pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>The following discussion about our exposure to market risk of financial instruments contains forward-looking statements. Actual results may differ materially from those described.</font></p>

<p style=' margin-bottom:18pt; margin-top:0pt;text-align:justify;'><b><font size=2>Interest Rate Risk</font></b></p>

<p style=' margin-bottom:18pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>Our holdings of financial instruments are comprised of debt securities. All such instruments are classified as securities available-for-sale. We do not invest in portfolio equity securities, or commodities, or use financial derivatives for trading purposes. Our debt security portfolio represents funds held temporarily, pending use in our business and operations. The Company had $458,916 and $483,350 of these investments on September&nbsp;30, 2008 and June&nbsp;30, 2008, respectively. It is the Company&#146;s policy that investments (including cash equivalents) shall be rated &#147;A&#148; or higher by Moody&#146;s or Standard and Poor&#146;s, no single </font></p>


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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>31</font></p>
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investment (excluding cash equivalents) shall represent more than 10% of the portfolio and at least 10% of the total portfolio shall have maturities of 90 days or less. Our market risk primarily relates to the risks of changes in the
credit quality of issuers. An interest rate increase of 1% would decrease the value of our portfolio by approximately $115. A decrease of 1% would increase the fair value by approximately $120.</font></p>

<p style=' margin-bottom:18pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>The Company invests in auction rate certificates. Recent market conditions have resulted in failures of certain auctions; however, the Company&#146;s securities have not experienced such failures. Due to the recent temporary liquidation problems experienced with certain securities, we have reclassified them as long-term investments.</font></p>


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<font size=2>Our Convertible Senior Notes are subject to interest rate and market price risk due to the convertible feature of the notes. Since the notes are convertible to common stock, as the fair market value of our common stock increases, so will the fair market value of the notes. Conversely, as the fair market value of our common stock decreases, the fair market value of the notes will decrease as well. As interest rates rise, the fair market value of the notes will decrease and as interest rates fall, the fair market value of the notes will increase. At September&nbsp;30, 2008, the estimated fair market value of our Convertible Senior Notes was approximately $263,158. An increase or a decrease in market interest rates of 1% would increase or decrease the fair value of our Convertible Senior Notes by approximately $2,635.</font></p>

<p style=' margin-bottom:18pt; margin-top:0pt;text-align:justify;'><b><font size=2>Foreign Exchange Risk</font></b></p>

<p style=' margin-bottom:18pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>A significant portion of the equipment acquisitions necessary for our planned expansion are denominated in yen. We have entered into contracts for equipment purchases that are denominated in yen. In order to mitigate the risk associated with these transactions, we have entered in currency forward contracts to buy or sell yen at future dates. As of September&nbsp;30, 2008, we have forward contracts to sell approximately 148.3 million yen and to purchase approximately 1.3 billion yen. For the quarter ended September&nbsp;30, 2008, an increase or a decrease in exchange rates of 1% would increase or decrease our capital equipment purchases by approximately $107. We are unable to predict the future exchange rates between the dollar and the yen and, therefore, we cannot estimate the impact on our future operating results.</font></p>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><u><b><font size=2>Controls and Procedures</font></b></u></p> </td> </tr></table>
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<p style=' margin-bottom:18pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>Under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer, we have evaluated the effectiveness of our disclosure controls and procedures as required by Exchange Act Rule 13a-15(b)&nbsp;as of the end of the period covered by this report. Based on that evaluation, the Chief Executive Officer and Chief Financial Officer have concluded that these disclosure controls and procedures were effective.</font></p>

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<p style=' margin-bottom:12pt; margin-top:0pt;text-align:center;'><u><font size=2>PART II &#150; OTHER INFORMATION</font></u></p>

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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><u><b><font size=2>Legal Proceedings</font></b></u></p> </td> </tr></table>
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<p style=' margin-bottom:14pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>Please see Note M to the accompanying unaudited financial statements for a summary of material pending litigation.</font></p>

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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><u><b><font size=2>Risk Factors</font></b></u></p> </td> </tr></table>
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<p style=' margin-bottom:18pt; margin-top:0pt; margin-left:0.05in;text-align:justify;'><b><font size=2>Recent global economic, capital markets and credit disruptions pose risks and present opportunities for our business segments. </font></b></p>

<p style=' margin-bottom:18pt; margin-top:0pt; margin-left:0.05in; text-indent:0.5in;text-align:justify;'><font size=2>The risks may include slower economic activity and investment in new construction projects that make use of our products. While credit availability is not presently a limiting factor for our planned manufacturing operations and expansion, the current volatile credit markets may diminish credit availability for some of our customers. Also, we conduct our business in U.S. dollars which may impact our foreign customers and suppliers as a result of changes in the currency exchange rates. These factors may adversely impact our existing or future take-or-pay agreements and require that we reallocate product shipments to other customers or pursue other remedies. Conversely, we are encouraged by the opportunities for large scale restructuring of the energy infrastructure to increase emphasis on renewable energy, like our solar laminates. Recent government support in this
direction includes the solar investment tax credit initiatives enacted as part of the U.S. Emergency Economic Stabilization Act of 2008, including an 8-year extension of the 30%, uncapped investment tax credit for commercial and residential solar installations, and permitted utilities to benefit from these tax credits.  We also foresee increased opportunity to generate cost reductions in our operations as the economic slowdown affects raw material and labor prices. We are actively managing these risks and opportunities as we continue to pursue our growth strategy.</font></p>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><u><b><font size=2>Exhibits</font></b></u></p> </td> </tr></table>
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     <TD WIDTH=10% ALIGN=left><FONT FACE="Times New Roman" SIZE=2>&nbsp;10.1</FONT></TD>
     <TD WIDTH=89% ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Revised Separation Agreement with Executive Officer effective August 31, 2008 (portions of the agreement have been omitted pursuant to a request for confidential treatment under Rule 24b-2)</FONT></TD></TR>
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     <TD ALIGN=left><FONT FACE="Times New Roman" SIZE=2>&nbsp;10.2</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Amendment No. 1 to 2006 Stock Incentive Plan</FONT></TD></TR>
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     <TD ALIGN=left><FONT FACE="Times New Roman" SIZE=2>&nbsp;10.3</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Form of Performance Share Award Agreement pursuant to the Energy Conversion Devices, Inc. 2006 Stock Incentive Plan, as amended</FONT></TD></TR>
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     <TD ALIGN=left><FONT FACE="Times New Roman" SIZE=2>&nbsp;10.4</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Amended Executive Severance Plan</FONT></TD></TR>
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     <TD ALIGN=left><FONT FACE="Times New Roman" SIZE=2>&nbsp;31.1</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Certification of Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002</FONT></TD></TR>
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     <TD ALIGN=left><FONT FACE="Times New Roman" SIZE=2>&nbsp;31.2</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Certification of Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002</FONT></TD></TR>
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     <TD ALIGN=left><FONT FACE="Times New Roman" SIZE=2>&nbsp;32&nbsp;</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Certification of Chief Executive Officer and Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002</FONT></TD></TR>
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<p style=' margin-bottom:18pt; margin-top:0pt;text-align:center;'><u><font size=2><a name="toc-h"></a>SIGNATURES</font></u></p>

<p style=' margin-bottom:18pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>Pursuant to the requirements of the Securities Exchange Act of 1934, the 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: 8pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><FONT face="Times New Roman, Times, Serif" size=2>ENERGY CONVERSION DEVICES, INC.</FONT></P>
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<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 20pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><FONT face="Times New Roman, Times, Serif" size=2>(Registrant)</FONT></P>
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<P style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0in; MARGIN-LEFT: 0in; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><FONT face="Times New Roman, Times, Serif" size=2>Date: November 10, 2008</FONT></P>
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<P style="MARGIN-TOP: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><FONT face="Times New Roman, Times, Serif" size=2>/s/&nbsp;Harry W. Zike</FONT></P>
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<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0.17in; MARGIN-LEFT: 0in; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><FONT face="Times New Roman, Times, Serif" size=2>Harry W. Zike<BR>Vice President and Chief Financial Officer<BR>(Principal Financial and Accounting Officer)</FONT></P>
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<P style="MARGIN-TOP: 8pt; MARGIN-BOTTOM: 0in; MARGIN-LEFT: 0in; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><FONT face="Times New Roman, Times, Serif" size=2>Date: November 10, 2008</FONT></P>
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<P style="MARGIN-TOP: 8pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><FONT face="Times New Roman, Times, Serif" size=2>/s/&nbsp;Mark D. Morelli</FONT></P>
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<P style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0.1in; MARGIN-LEFT: 0in; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><FONT face="Times New Roman, Times, Serif" size=2>Mark D. Morelli<BR>President and Chief Executive Officer</FONT></P>
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<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center"><font size="2"><strong>ENERGY CONVERSION DEVICES, INC.</strong></font></p>
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<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center"><font size="2"><b>&#147;Portions of Exhibit B to this agreement have been omitted from this filing pursuant to a confidential treatment request under Rule 24b-2 under the Securities Exchange Act of 1934.&#148;</b></font></p>
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<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center"><u><b><font size="2">REVISED SEPARATION AGREEMENT AND COMPLETE RELEASE OF LIABILITY</font></b></u></p>

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<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><b><font size="2">1.</font></b></p>
</td>

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<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><u><b><font size="2">PARTIES</font></b></u><b><font size="2">:</font></b></p>
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<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0.5in; TEXT-ALIGN: justify"><font size="2">The undersigned,</font> <b><font size="2">Sanjeev Kumar</font></b> <font size="2">(&ldquo;</font><b><font size="2">KUMAR</font></b><font size="2">&rdquo;), and Energy Conversion Devices, Inc., ECD</font><font size="2">Ovonic Materials, United Solar Ovonic LLC and Ovonic Battery Company and its subsidiaries, divisions, affiliates and joint ventures (collectively referred to as
&ldquo;</font><b><font size="2">ECD</font></b><font size="2">&rdquo;), have mutually agreed to terminate their employment relationship in a friendly and amicable manner and to further provide</font> <b><font size="2">KUMAR</font></b> <font size="2">with assistance during this period of transition.</font> <b><font size="2">KUMAR&rsquo;s</font></b> <font size="2">termination of employment, as of the date specified in Paragraph 2, below, will constitute a &ldquo;separation from
service&rdquo; under Section 409A of the Internal Revenue Code of 1986, as amended (the &ldquo;Code&rdquo;).</font></p>

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<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><b><font size="2">2.</font></b></p>
</td>

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<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: justify"><u><b><font size="2">CONSIDERATION</font></b></u><b><font size="2">:</font></b></p>
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<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0.5in; TEXT-ALIGN: justify"><b><font size="2">ECD</font></b> <font size="2">will provide the following benefits as a result of the voluntary resignation of</font> <b><font size="2">KUMAR's</font></b> <font size="2">employment, effective</font> <b><font size="2">Sunday, August 31, 2008.</font></b> <b><font size="2">KUMAR&rsquo;s</font></b> <font size="2">last day of work will be</font> <b><font size="2">Friday, August 29,
2008.</font></b> <b><font size="2">KUMAR</font></b> <font size="2">will receive all pay and benefits through</font> <b><font size="2">August 31, 2008.</font></b> <font size="2">If this Agreement is signed within the 21-day review period but prior to</font> <b><font size="2">August 31, 2008,</font></b> <font size="2">the Agreement will have to be resigned by</font> <b><font size="2">KUMAR</font></b> <font size="2">on or after</font> <b><font size="2">August 31, 2008</font></b>
<font size="2">in order to receive the benefits of this Agreement.</font></p>

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<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: justify">&nbsp;</p>
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<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" width="48">
<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><b><font size="2">A.</font></b></p>
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<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: justify"><b><font size="2">SEPARATION PAY:</font></b></p>
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<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 1in; TEXT-ALIGN: justify"><font size="2">Upon signing</font><font size="2">of this Revised Agreement, and after the seven (7) day revocation period has expired,</font> <b><font size="2">KUMAR</font></b> <font size="2">shall receive</font> <b><font size="2">Fifty-Two (52) Weeks&rsquo;</font></b> <font size="2">base pay ($300,000.00) for the period</font> <b><font size="2">September 1, 2008 to August 31, 2009.</font></b>
<font size="2">Severance, including any retroactive payment back to</font> <b><font size="2">August 31, 2008,</font></b> <font size="2">will begin to be paid in the first full payroll period following expiration of the seven (7) day revocation period.</font> <b><font size="2">ECD</font></b> <font size="2">will deduct from the separation pay payments: (1) all amounts owed to</font> <b><font size="2">ECD</font></b> <font size="2">by the employee; (2) all taxes to be withheld according
to applicable federal, state and local laws; (3) garnishments; (4) all support orders; (5) all tax liens; (6) health and dental insurance co-pays; and (7) any other court order directing deduction from an employee&rsquo;s paycheck. There will be no lump sum payment. Since employment is terminated, there will be no additional accrual of vacation, sick and/or holiday pay during the severance period. Severance payments shall not be considered wages under the terms of the</font>
<b><font size="2">ECD</font></b> <font size="2">401-K Plan.</font></p>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right"><font size="2">Initial Here: ___</font></p>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center"><font size="2">1</font></p>
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<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center"><font size="2"><strong>ENERGY CONVERSION DEVICES, INC.</strong></font></p>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

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<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: justify">&nbsp;</p>
</td>

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<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: justify"><b><font size="2">B.</font></b></p>
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<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: justify"><b><font size="2">MEDICAL &amp; DENTAL INSURANCE:</font></b></p>
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<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 1in; TEXT-ALIGN: justify"><font size="2">If</font> <b><font size="2">KUMAR,</font></b> <font size="2">at the time of separation, was not a participant in</font> <b><font size="2">ECD</font></b><font size="2">&rsquo;s group medical or dental plan,</font> <b><font size="2">KUMAR</font></b> <font size="2">will not be eligible for COBRA coverage under these programs.</font></p>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 1in; TEXT-ALIGN: justify"><font size="2">If</font> <b><font size="2">KUMAR</font></b> <font size="2">is a participant in</font> <b><font size="2">ECD&rsquo;s</font></b> <font size="2">group medical or dental plan prior to the time of separation, then</font> <b><font size="2">KUMAR&rsquo;S</font></b> <font size="2">regular group medical or dental insurance</font><font size="2">will remain in effect through</font>
<b><font size="2">August 31, 2008.</font></b> <font size="2">In accordance with federal law (COBRA),</font> <b><font size="2">KUMAR</font></b> <font size="2">may, however, elect to continue to participate in the group medical and dental plans of</font> <b><font size="2">ECD</font></b> <font size="2">generally until eighteen (18) months from the date of termination, or under COBRA rules, until</font> <b><font size="2">KUMAR</font></b> <font size="2">is covered under another group
insurance plan, whichever occurs first. A more detailed COBRA notice will be provided to</font> <b><font size="2">KUMAR</font></b> <font size="2">in a separate COBRA notification.</font></p>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 1in; TEXT-ALIGN: justify"><font size="2">In addition, upon signing this Revised Separation Agreement and upon receipt by</font> <b><font size="2">ECD</font></b> <font size="2">of</font> <b><font size="2">KUMAR&rsquo;s</font></b> <font size="2">COBRA election,</font> <b><font size="2">ECD</font></b> <font size="2">will continue to pay the Employer&rsquo;s pre-termination portion of the COBRA premium for medical and dental
insurance for the period of severance or until the end of the month in which severance is discontinued, unless</font> <b><font size="2">KUMAR</font></b> <font size="2">obtains other medical or dental group insurance under COBRA rules.</font> <b><font size="2">KUMAR&rsquo;s</font></b> <font size="2">contribution to the COBRA premium will be deducted from the severance payments. In order to receive this benefit,</font> <b><font size="2">KUMAR</font></b>
<u><font size="2">must</font></u> <font size="2">elect COBRA coverage in a timely manner.</font> <b><font size="2">ECD</font></b> <font size="2">will pay for its portion of the COBRA cost after a COBRA election is made by</font> <b><font size="2">KUMAR</font></b> <font size="2">and after seven (7) calendar days have elapsed since the signing of this Revised Agreement. After the period of severance,</font> <b><font size="2">KUMAR</font></b> <font size="2">will be responsible for
entire COBRA premium.</font></p>

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<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: justify">&nbsp;</p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" nowrap width="48">
<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: justify"><b><font size="2">C.</font></b></p>
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<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: justify"><b><font size="2">TERMINATION OF OTHER EMPLOYEE BENEFITS:</font></b></p>
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<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 1in; TEXT-ALIGN: justify"><font size="2">Except as provided herein, all other benefits, including but not limited to, company-paid life insurance, supplemental life insurance, dependent life insurance, company-paid accidental death and dismemberment insurance, short-term and long-term disability plans, vacation accrual, etc., cease on</font> <b><font size="2">KUMAR&rsquo;s</font></b> <font size="2">termination date. The
supplemental life insurance benefit is subject to conversion rights. These policies may be converted to individual policies. Conversion forms will be sent to</font> <b><font size="2">KUMAR&rsquo;s</font></b> <font size="2">home by the insurance carrier if</font> <b><font size="2">KUMAR</font></b> <font size="2">meets the eligibility requirements. Severance pay is not considered &ldquo;compensation&rdquo; for purposes of determining benefits under any other benefit plan maintained
by</font> <b><font size="2">ECD</font></b><font size="2">.</font></p>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right"><font size="2">Initial Here: ___</font></p>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center"><font size="2">1</font></p>
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<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center"><font size="2"><strong>ENERGY CONVERSION DEVICES, INC.</strong></font></p>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

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<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: justify">&nbsp;</p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" nowrap width="48">
<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: justify"><b><font size="2">D.</font></b></p>
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<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: justify"><b><font size="2">ANNUAL INCENTIVE PLAN:</font></b></p>
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<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 1in; TEXT-ALIGN: justify"><b><font size="2">KUMAR</font></b> <font size="2">will receive his 2008 Annual Incentive Plan (&ldquo;AIP&rdquo;) award for the performance period ending June 30, 2008 in the amount of $225,000.00 at the same time as other Plan participants, but no later than September 20, 2008. In addition,</font> <b><font size="2">KUMAR</font></b> <font size="2">will be eligible to receive his 2009 AIP (12 month
basis) and 2010 AIP (2 month basis) in the total amount of $175,000.00 payable when bonuses are paid in 2009 to the other participants, but no later than September 30, 2009.</font></p>

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<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: justify">&nbsp;</p>
</td>

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<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: justify"><b><font size="2">E.</font></b></p>
</td>

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<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: justify"><b><font size="2">LONG TERM INCENTIVE PLAN:</font></b></p>
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<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 1in; TEXT-ALIGN: justify"><font color="#333333"><b><font size="2">KUMAR</font></b> <font size="2">shall not be entitled to receive any further awards under any long-term incentive plan, but shall, in lieu thereof, be entitled to the accelerated equity vesting of his existing awards as described below.</font></font></p>

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<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: justify">&nbsp;</p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" nowrap width="48">
<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: justify"><b><font size="2">F.</font></b></p>
</td>

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<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: justify"><b><font size="2">ACCELERATED VESTING:</font></b></p>
</td>
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<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 1in; TEXT-ALIGN: justify"><b><font size="2">KUMAR</font></b> <font size="2">has 6,000 unvested stock options and 5,000 unvested shares of restricted stock, together with 9,000 vested stock options.</font> <b><font size="2">KUMAR</font></b> <font size="2">also holds 1,000 shares of unrestricted stock. As additional consideration: (1) the termination date of the vested and unvested stock options and unvested shares of
restricted stock will be extended to</font> <b><font size="2">August 31, 2009</font></b><font size="2">, (provided that in no event shall the term of the stock option be extended later than the earlier of the latest date upon which the stock option could have expired by its original terms under any circumstances or the 10<sup>th</sup> anniversary of the original date of the grant of the stock option), and (2) the unvested stock options and unvested shares of restricted stock will
fully vest on the earlier of</font> <b><font size="2">February 28, 2009</font></b> <font size="2">or</font> <b><font size="2">KUMAR&rsquo;s</font></b> <font size="2">death, in each case, subject to the terms of the ECD 2000 Non-Qualified Stock Option Plan and the 2006 Stock Incentive Plan</font><b><font size="2">.</font></b> <font size="2">There shall be no restriction on</font> <b><font size="2">KUMAR&rsquo;s</font></b> <font size="2">ability or right to sell his 1,000 unrestricted
shares or his right to exercise and sell his vested stock options.</font></p>

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<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: justify">&nbsp;</p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" nowrap width="48">
<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: justify"><b><font size="2">G.</font></b></p>
</td>

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<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: justify"><b><font size="2">PAYMENT IN LIEU OF CERTAIN EMPLOYEE BENEFITS:</font></b></p>
</td>
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</table>
</div>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 1in; TEXT-ALIGN: justify"><font size="2">Because</font> <b><font size="2">KUMAR</font></b> <font size="2">may not participate in certain employee benefit plans following termination of employment on</font> <b><font size="2">August 31, 2008</font></b> <font size="2">for the reason that he will not meet plan eligibility requirements, the following additional payments will be made in lieu certain employee benefits:</font></p>

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<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: justify">&nbsp;</p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" width="24">
<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><font size="4"><b>&bull;</b></font></p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top">
<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: justify"><b><font size="2">401-K: ECD</font></b> <font size="2">will pay to</font> <b><font size="2">KUMAR</font></b> <font size="2">$9,016.67, minus normal payroll deductions which is the amount contributed by</font> <b><font size="2">ECD</font></b> <font size="2">for the last plan year.</font></p>
</td>
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</table>
</div>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 1.5in; TEXT-ALIGN: justify">&nbsp;</p>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right"><font size="2">Initial Here: ___</font></p>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center"><font size="2">2</font></p>
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<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center"><font size="2"><strong>ENERGY CONVERSION DEVICES, INC.</strong></font></p>

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<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

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<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><font size="4"><b>&bull;</b></font></p>
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<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: justify"><b><font size="2">Basic Life Insurance and Provident AD&amp;D Insurance: ECD</font></b> <font size="2">will pay to</font> <b><font size="2">KUMAR</font></b> <font size="2">the amount of $1,368.00, minus normal payroll <font size="2">deductions, which is equal to the annual premium previously paid by</font> <b><font size="2">ECD</font></b> <font size="2">for the
loss of the insurance coverage.</font></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="4"><b>&bull;</b></font></p>
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<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: justify"><b><font size="2">FSA Flexible Spending Account:</font></b> <font size="2">Since there is no payment made by</font> <b><font size="2">ECD</font></b> <font size="2">to the Flexible Spending Account (&ldquo;FSA&rdquo;),</font><b><font size="2">ECD</font></b> <font size="2">will pay</font><b><font size="2">KUMAR</font></b> <font size="2">$1,300.00, minus normal
payroll deductions, to make up for the loss of the pre-tax benefit to</font> <b><font size="2">KUMAR,</font></b> <font size="2">minus the unpaid contributions owed to the FSA by</font> <b><font size="2">KUMAR</font></b> <font size="2">for the calendar year 2008 as of August 31, 2008.</font></p>
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<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: justify"><b><font size="2">H.</font></b></p>
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<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: justify"><b><font size="2">UNEMPLOYMENT COMPENSATION:</font></b></p>
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<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 1in; TEXT-ALIGN: justify"><b><font size="2">ECD</font></b> <font size="2">will not contest a claim for unemployment compensation by</font> <b><font size="2">KUMAR</font></b> <u><font size="2">after</font></u> <font size="2">the period of severance, providing</font> <b><font size="2">KUMAR</font></b> <font size="2">is making good faith efforts to secure new employment. This does not guarantee benefits since a determination
of benefit eligibility can only be made by the State&rsquo;s Unemployment Insurance Agency.</font></p>

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<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: justify"><b><font size="2">I.</font></b></p>
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<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: justify"><b><font size="2">OUTPLACEMENT ASSISTANCE:</font></b></p>
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<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 1in; TEXT-ALIGN: justify"><b><font size="2">ECD</font></b> <font size="2">will provide</font> <b><font size="2">KUMAR</font></b> <font size="2">with outplacement services with the firm and program to be determined by</font> <b><font size="2">ECD</font></b><font size="2">. Outplacement services will not be provided later than December 31 of the second year after termination.</font></p>

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<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: justify"><b><font size="2">J.</font></b></p>
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<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: justify"><b><font size="2">VACATION ACCRUAL:</font></b></p>
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<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 1in; TEXT-ALIGN: justify"><b><font size="2">KUMAR</font></b> <font size="2">will be paid accrued but unused vacation hours as of</font> <b><font size="2">August 31, 2008</font></b> <font size="2">in the first payroll period following termination of employment. As of</font> <b><font size="2">July 18, 2008</font></b><font size="2">, the balance of accrued vacation hours is 96.</font></p>

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<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: justify"><b><font size="2">K.</font></b></p>
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<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: justify"><b><font size="2">RE-EMPLOYMENT:</font></b></p>
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<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 1in; TEXT-ALIGN: justify"><font size="2">Should</font> <b><font size="2">KUMAR</font></b> <font size="2">become re-employed by</font> <b><font size="2">ECD</font></b> <font size="2">or one of its divisions, subsidiaries, affiliates or joint ventures during the period of severance at a base pay less than he received at</font> <b><font size="2">ECD</font></b> <font size="2">prior to his separation,</font>
<b><font size="2">ECD</font></b> <font size="2">will make up the difference in base pay for the remaining period of severance. The Parties agree that this provision does not in any way obligate the re-employment of</font> <b><font size="2">KUMAR</font></b> <font size="2">at any time in the future.</font></p>

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<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: justify"><b><font size="2">3.</font></b></p>
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<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: justify"><u><b><font size="2">LIMITATION OF SEPARATION PAY</font></b></u><b><font size="2">:</font></b></p>
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<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0.5in; TEXT-ALIGN: justify"><font size="2">The separation pay provided to</font> <b><font size="2">KUMAR</font></b> <font size="2">as part of this Revised Agreement shall be reduced (i) by the amount for the period of notice if required to be given</font></p>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in; TEXT-ALIGN: justify">&nbsp;</p>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right"><font size="2">Initial Here: ___</font></p>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center"><font size="2">3</font></p>
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<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center"><font size="2"><strong>ENERGY CONVERSION DEVICES, INC.</strong></font></p>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0.5in; TEXT-ALIGN: justify"><font size="2">pursuant to local, state or federal law such as the Worker Adjustment and Retraining Notification Act (&ldquo;WARN&rdquo;) subject to a minimum payment of <font size="3"></font><font size="2"><strong>Four (4) Weeks&rsquo;</strong></font> <font size="3"></font><font size="2">pay; (ii) by the amount received if</font>
<font size="3"></font><font size="2"><strong>KUMAR</strong></font> <font size="3"></font><font size="2">receives administrative leave pay subject to a minimum payment of</font> <font size="3"></font><font size="2"><strong>Four (4) Weeks&rsquo;</strong></font> <font size="3"></font><font size="2">pay; or (iii) should</font> <strong>KUMAR</strong></font> <font size="2">apply for and receive short-term or long-term disability benefits, social security disability benefits, unemployment
compensation or workers&rsquo; compensation benefits allocated to the period in which severance was paid subject to a minimum payment of</font> <b><font size="2">Four (4) Weeks&rsquo;</font></b> <font size="2">pay. If</font> <b><font size="2">KUMAR</font></b> <font size="2">has already received the benefits of this Revised Agreement,</font> <b><font size="2">KUMAR</font></b> <font size="2">will be required to repay the amount of overpayment to</font>
<b><font size="2">ECD.</font></b> <font size="2">If the amount is not repaid,</font> <b><font size="2">ECD</font></b> <font size="2">will have a lien on any benefits granted should the benefits be received after this time period but apply to this time period. In addition, the benefits of this Revised Agreement will cease should</font> <b><font size="2">KUMAR</font></b> <font size="2">violate the provisions of this Revised Agreement.</font></p>

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<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: justify"><b><font size="2">4.</font></b></p>
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<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: justify"><u><b><font size="2">DEDUCTION FROM SEVERANCE</font></b></u><b><font size="2">:</font></b></p>
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<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0.5in; TEXT-ALIGN: justify"><b><font size="2">KUMAR</font></b> <font size="2">understands and voluntarily agrees that the severance payment set forth in Paragraph 2(A) will be reduced by any of the following amounts owed by</font> <b><font size="2">KUMAR</font></b> <font size="2">to</font> <b><font size="2">ECD</font></b> <font size="2">on</font> <b><font size="2">KUMAR&rsquo;s</font></b> <font size="2">effective date of
termination: (i) any unused travel advances or other amounts owed by</font> <b><font size="2">KUMAR</font></b> <font size="2">to</font> <b><font size="2">ECD</font></b><font size="2">; (ii) any amounts paid pursuant to an advance of vacation; and (iii) any other amounts which</font> <b><font size="2">KUMAR</font></b> <font size="2">may owe to</font> <b><font size="2">ECD</font></b> <font size="2">at the time of termination.</font></p>

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<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: justify"><b><font size="2">5.</font></b></p>
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<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: justify"><u><b><font size="2">RELEASE OF CLAIMS</font></b></u><b><font size="2">:</font></b></p>
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<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0.5in; TEXT-ALIGN: justify"><font size="2">In consideration of the terms set forth in this Revised Agreement,</font> <b><font size="2">KUMAR</font></b> <font size="2">agrees to release</font> <b><font size="2">ECD</font></b> <font size="2">and all of its subsidiaries, divisions, affiliates, joint ventures, shareholders, officers, directors, employees, insurers and agents of</font>
<u><b><font size="2">AL</font></b></u><font size="1">L*</font> <font size="2">liability in connection with</font> <b><font size="2">KUMAR&rsquo;s</font></b> <font size="2">employment or separation, including, but not limited to, any and all claims under federal or state laws for discrimination or wrongful discharge, including the Age Discrimination in Employment Act, (&ldquo;ADEA&rdquo;), and the Worker Adjustment and Retraining Notification Act (&ldquo;WARN&rdquo;) (even if the
WARN Act is triggered following</font> <b><font size="2">KUMAR&rsquo;s</font></b> <font size="2">termination).</font> <b><font size="2">KUMAR</font></b> <font size="2">waives all rights to file a complaint under the</font> <b><font size="2">ECD</font></b> <font size="2">Mandatory Complaint Procedure.</font></p>

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<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: justify"><b><font size="2">6.</font></b></p>
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<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: justify"><u><b><font size="2">NO RETURN TO WORK</font></b></u><b><font size="2">:</font></b></p>
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<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0.5in; TEXT-ALIGN: justify"><b><font size="2">KUMAR</font></b> <font size="2">acknowledges that</font> <b><font size="2">KUMAR&rsquo;s</font></b> <font size="2">employment with</font> <b><font size="2">ECD</font></b> <font size="2">has ended and that as a result of receipt of severance,</font> <b><font size="2">KUMAR</font></b> <font size="2">does not have recall or rehire</font></p>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"><font size="2">_________________________</font></p>
<sup>&nbsp;</sup>

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<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><font size="2"><sup>*</sup></font></p>
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<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: justify"><font size="2">A representative listing of potential laws governing the employment relationship which are being released by the employee is attached as Exhibit "A." This is not intended to be an exhaustive list, but rather the types of claims and the extent to which they are being released.</font></p>
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<sup>&nbsp;</sup>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in; TEXT-ALIGN: justify">&nbsp;</p>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right"><font size="2">Initial Here: ___</font></p>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center"><font size="2">4</font></p>
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<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center"><font size="2"><strong>ENERGY CONVERSION DEVICES, INC.</strong></font></p>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

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

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0.5in; TEXT-ALIGN: justify"><font size="2"><font size="2">rights, nor any expectations of recall or rehire, by <b><font size="2">ECD</font></b> <font size="2">or any of its subsidiaries, divisions, affiliates or joint ventures</font>.</font></font></p>

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<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: justify"><b><font size="2">7.</font></b></p>
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<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: justify"><u><b><font size="2">RETURN OF COMPANY PROPERTY</font></b></u><b><font size="2">:</font></b></p>
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<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0.5in; TEXT-ALIGN: justify"><b><font size="2">KUMAR</font></b> <font size="2">will immediately return to</font> <b><font size="2">ECD</font></b> <font size="2">any</font> <b><font size="2">ECD</font></b> <font size="2">property in</font> <b><font size="2">KUMAR&rsquo;s</font></b> <font size="2">possession, together with</font><font size="2">all documents, reports, files, memoranda, records, keys, identification cards,
computer access codes, software, file passwords, or any other physical or personal property which</font> <b><font size="2">KUMAR</font></b> <font size="2">received or prepared or helped to prepare in connection with</font> <b><font size="2">KUMAR&rsquo;s</font></b> <font size="2">employment and which</font> <b><font size="2">KUMAR</font></b> <font size="2">has in</font> <b><font size="2">KUMAR&rsquo;s</font></b> <font size="2">possession.</font> <b><font size="2">KUMAR</font></b>
<font size="2">represents that</font> <b><font size="2">KUMAR</font></b> <font size="2">has not retained and will not retain any copies, duplicates, reproductions or excerpts thereof.</font></p>

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<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: justify"><b><font size="2">8.</font></b></p>
</td>

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<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: justify"><u><b><font size="2">CONFIDENTIAL AND PROPRIETARY INFORMATION</font></b></u><b><font size="2">:</font></b></p>
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<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0.5in; TEXT-ALIGN: justify"><b><font size="2">KUMAR</font></b> <font size="2">acknowledges that during the course of</font> <b><font size="2">KUMAR&rsquo;s</font></b> <font size="2">employment,</font> <b><font size="2">KUMAR</font></b> <font size="2">has been entrusted with certain business, financial, technical, personnel and other proprietary information and materials that are the property of</font>
<b><font size="2">ECD</font></b><font size="2">.</font> <b><font size="2">KUMAR</font></b> <font size="2">agrees not to communicate or disclose to any third party or use for</font> <b><font size="2">KUMAR&rsquo;s</font></b> <font size="2">own account, without written consent of</font> <b><font size="2">ECD</font></b><font size="2">, any of the aforementioned information or material, except as required by law, unless and until such information or material becomes generally available
to the public through sources other than</font> <b><font size="2">KUMAR.</font></b> <b><font size="2">KUMAR</font></b> <font size="2">will return to</font> <b><font size="2">ECD</font></b> <font size="2">the originals and all copies of any business records of</font> <b><font size="2">ECD</font></b> <font size="2">which are or were subject to</font> <b><font size="2">KUMAR&rsquo;s</font></b> <font size="2">custody or control, regardless of the sources from which such records were
obtained.</font> <b><font size="2">KUMAR</font></b> <font size="2">will certify that to the best of his knowledge and belief, and after diligent search and inquiry,</font> <b><font size="2">KUMAR</font></b> <font size="2">has done so. In addition, all business equipment shall be returned unless specifically agreed in writing otherwise by</font> <b><font size="2">ECD</font></b><font size="2">.</font></p>

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<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><b><font size="2">9.</font></b></p>
</td>

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<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: justify"><u><b><font size="2">NON-DISPARAGEMENT</font></b></u><b><font size="2">:</font></b></p>
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<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0.5in; TEXT-ALIGN: justify"><b><font size="2">KUMAR</font></b> <font size="2">will not disparage, discredit or otherwise treat in any detrimental manner,</font> <b><font size="2">ECD</font></b> <font size="2">or any of its divisions, subsidiaries, affiliates, joint ventures, officers, directors and employees.</font> <b><font size="2">ECD</font></b> <font size="2">agrees that in official communication to the public that it
will not disparage</font> <b><font size="2">KUMAR</font></b><font size="2">.</font></p>

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<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><b><font size="2">10.</font></b></p>
</td>

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<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: justify"><u><b><font size="2">NON-SOLICITATION</font></b></u><b><font size="2">:</font></b></p>
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<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0.5in; TEXT-ALIGN: justify"><b><font size="2">KUMAR</font></b> <font size="2">agrees that for a period of</font> <b><font size="2">Twelve (12) Months</font></b> <font size="2">following employment termination,</font> <b><font size="2">KUMAR</font></b> <font size="2">will not, directly or indirectly, on behalf of himself or any other person or entity, without the prior written approval of</font>
<b><font size="2">ECD,</font></b> <font size="2">directly or indirectly (i) induce any person or entity to leave his or her employment with</font> <b><font size="2">ECD</font></b><font size="2">, terminate an independent contractor relationship with</font> <b><font size="2">ECD</font></b> <font size="2">or terminate or</font></p>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right"><font size="2">Initial Here: ___</font></p>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center"><font size="2">5</font></p>
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<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center"><font size="2"><strong>ENERGY CONVERSION DEVICES, INC.</strong></font></p>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

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

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0.5in; TEXT-ALIGN: justify"><font size="2"><font size="2">reduce any contractual relationship with <b><font size="2">ECD;</font></b> <font size="2">or (ii) induce or influence any customer, supplier or other person that has a business relationship with</font> <b><font size="2">ECD</font></b> <font size="2">or any subsidiary, division, affiliate or joint venture of</font> <b><font size="2">ECD</font></b> <font size="2">to
discontinue or reduce the extent of such relationship</font>.</font></font></p>

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<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><b><font size="2">11.</font></b></p>
</td>

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<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: justify"><u><b><font size="2">NON-COMPETITION</font></b></u><b><font size="2">:</font></b></p>
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<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0.5in; TEXT-ALIGN: justify"><b><font size="2">KUMAR</font></b> <font size="2">agrees that for a period of</font> <b><font size="2">Six (6) Months</font></b> <font size="2">following employment termination,</font> <b><font size="2">KUMAR</font></b> <font size="2">will not, directly or indirectly, on behalf of himself or any other person or entity, without the prior written approval of</font>
<b><font size="2">ECD,</font></b> <font size="2">own, manage, operate, join, control, be employed by, assist, consult or participate in the ownership, management, operation or control of, or be connected in any manner, including but not limited to holding the positions of shareholder, director, officer, consultant, independent contractor, employee, partner or investor, with any Competing Enterprise. &ldquo;Competing Enterprise&rdquo; means and shall be limited to those entities
identified in Exhibit B.</font></p>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0.5in; TEXT-ALIGN: justify"><font size="2">Nothing herein shall preclude KUMAR from being a member of a private equity company, investment bank, advisory firm, hedge fund or a venture capital firm that invests in or provides advisory services to the Competing Enterprises as part of its investment portfolio, providing that KUMAR does not actively participate in the day-to-day management or operation of the Competing
Enterprise.</font></p>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: 0.08in; TEXT-ALIGN: justify"><b><font size="2">KUMAR</font></b> <font size="2">agrees to provide any prospective employer with a copy of the non-competition paragraph of this Revised Agreement.</font></p>

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<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: justify">&nbsp;</p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" nowrap width="48">
<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: justify"><font size="2">12.</font></p>
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<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: justify"><u><b><font size="2">LIQUIDATED DAMAGES AND INJUNCTIVE RELIEF</font></b></u><font size="2">:</font></p>
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<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0.5in; TEXT-ALIGN: justify"><b><font size="2">KUMAR</font></b> <font size="2">agrees that the covenants in Paragraphs 9, 10 and 11 are reasonable and should he violate the terms of Paragraphs 9, 10 or 11,</font> <b><font size="2">ECD</font></b> <font size="2">shall have the right to seek and he gives his consent to the issuance of an injunction to prohibit him from further violation of these covenants including an order
requiring him to immediately cease all employment or other activities in violation of these Paragraphs. While the Parties have stipulated to liquidated damages, the payment of such liquidated damages does not relieve the right of</font> <b><font size="2">ECD</font></b> <font size="2">to obtain an injunction prohibiting further violation.</font></p>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0.5in; TEXT-ALIGN: justify"><font size="2">In addition to all equitable remedies available to</font> <b><font size="2">ECD</font></b> <font size="2">as specified above,</font> <b><font size="2">KUMAR</font></b> <font size="2">agrees that as a result of a violation of Paragraphs 9, 10 or 11, that he shall be liable for liquidated damages in the form of surrender to ECD of the financial value of the options and restricted
shares that are the subject of accelerated vesting under Paragraph 2F. The parties agree that the amount of actual damages suffered by ECD as a result of a violation of Paragraphs 9, 10 or 11 would be difficult to determine. The time periods specified in Paragraphs 9,</font></p>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right"><font size="2">Initial Here: ___</font></p>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center"><font size="2">6</font></p>
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<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center"><font size="2"><strong>ENERGY CONVERSION DEVICES, INC.</strong></font></p>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0.5in; TEXT-ALIGN: justify"><font size="2"><font size="2">10 and 11, as applicable, shall be extended for the period of any violation of the restriction.</font></font></p>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0.5in; TEXT-ALIGN: justify"><font size="2"><font size="2">If</font> <b><font size="2">KUMAR</font></b> <font size="2">is obligated under Paragraph 9, 10, or 11 to surrender the financial value of the options and restricted shares that are subject to accelerated vesting under Paragraph 2F, then</font> <b><font size="2">KUMAR</font></b> <font size="2">shall (1) forfeit any right to receive or exercise the unvested options
and restricted shares that are the subject of accelerated vesting under Paragraph 2F, (2) forfeit any options that have vested under</font></font> <font size="2">Paragraph 2F but have not then been exercised, (3) with respect to any options that have vested under Paragraph 2F and have then been exercised, pay</font> <b><font size="2">ECD</font></b> <font size="2">the fair market value of the shares on the date the options were exercised, less the option price, and (4) with respect
to any restricted shares that have vested under Paragraph 2F, pay</font> <b><font size="2">ECD</font></b> <font size="2">the fair market value of the shares as of the date on which the restrictions lapsed. For purposes of this paragraph, &ldquo;fair market value&rdquo; will be defined as the per share closing price of</font> <b><font size="2">ECD&rsquo;s</font></b> <font size="2">common stock on the date of exercise for options and the date on which the restrictions lapse for
restricted stock.</font></p>

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<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><b><font size="2">12.</font></b></p>
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<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: justify"><u><b><font size="2">ACKNOWLEDGMENT OF ADDITIONAL CONSIDERATION</font></b></u><b><font size="2">:</font></b></p>
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<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0.5in; TEXT-ALIGN: justify"><b><font size="2">KUMAR</font></b> <font size="2">acknowledges that the consideration</font> <b><font size="2">KUMAR</font></b> <font size="2">is receiving pursuant to this Revised Agreement is greater than the benefits he would be entitled under the June 5, 2006 Severance Agreement and</font> <b><font size="2">KUMAR</font></b> <font size="2">is not entitled to additional severance pay beyond
the terms of this Revised Agreement.</font></p>

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<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: justify"><b><font size="2">13.</font></b></p>
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<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: justify"><u><b><font size="2">TIME PERIOD FOR REVIEW OF AGREEMENT</font></b></u><b><font size="2">:</font></b></p>
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<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0.5in; TEXT-ALIGN: justify"><b><font size="2">KUMAR</font></b> <font size="2">will have an opportunity of Twenty-One (21) calendar days to review this Revised Agreement and is advised to consult with an attorney of his choosing at his</font><font size="2">own expense. If this Revised Agreement is not signed by the end of the Twenty-One (21) calendar day review period, the offer will expire. No payments will be made under
the terms of this Revised Agreement until the Agreement is signed and the seven (7) day revocation period has expired. The Parties have agreed that any changes to this Agreement, whether material or not, will not restart the 21-day review period.</font></p>

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<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><b><font size="2">14.</font></b></p>
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<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: justify"><u><b><font size="2">INDIVIDUAL AGREEMENT</font></b></u><b><font size="2">:</font></b></p>
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<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0.5in; TEXT-ALIGN: justify"><b><font size="2">KUMAR</font></b> <font size="2">acknowledges that the consideration he</font><font size="2">is receiving pursuant to this Revised Agreement is not part of a plan or program and has been individually negotiated between the Parties and that he is not entitled to additional severance pay or benefits beyond the terms of this Revised Agreement, including the Energy Conversion
Devices, Inc. Executive Severance Plan.</font></p>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right"><font size="2">Initial Here: ___</font></p>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center"><font size="2">7</font></p>
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<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center"><font size="2"><strong>ENERGY CONVERSION DEVICES, INC.</strong></font></p>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center">&nbsp;</p>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"></p>

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<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><b><font size="2">15.</font></b></p>
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<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: justify"><b><font size="2"><u>RIGHT TO REVOKE</u>:</font></b></p>
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<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0.5in; TEXT-ALIGN: justify"><font size="2"><font size="2">This offer of severance may be revoked by</font> <b><font size="2">ECD</font></b> <font size="2">at any time prior to the official termination date if</font> <b><font size="2">ECD</font></b> <font size="2">makes the decision to retain</font> <b><font size="2">KUMAR</font></b> <font size="2">in</font> <b><font size="2">KUMAR&rsquo;s</font></b> <font size="2">current
or new position or to transfer</font> <b><font size="2">KUMAR</font></b> <font size="2">to another</font> <b><font size="2">ECD</font></b> <font size="2">division, subsidiary, affiliate or joint venture.</font></font></p>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"></p>

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<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><b><font size="2">16.</font></b></p>
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<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: justify"><u><b><font size="2">UNDERSTANDING OF AGREEMENT</font></b></u><b><font size="2">:</font></b></p>
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 <font size="2"></font>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0.5in; TEXT-ALIGN: justify"><font size="2"><strong>KUMAR</strong> <font size="3"></font><font size="2">acknowledges that he has read this entire Revised Agreement, that</font> <font size="3"></font><b><font size="2">KUMAR</font></b> <font size="3"></font><font size="2">has had the opportunity to consult with counsel at</font> <font size="3"></font><b><font size="2">KUMAR&rsquo;s</font></b>
<font size="3"></font><font size="2">own</font> expense, and that</font> <b><font size="2">KUMAR</font></b> <font size="2">understands all of its terms and knowingly and freely enters into this Revised Agreement.</font> <b><font size="2">KUMAR</font></b> <font size="2">further acknowledges that</font> <b><font size="2">KUMAR</font></b> <font size="2">has been afforded Twenty-One (21) calendar days to consider this Revised Agreement, has been advised to seek review of this Agreement
by an attorney at his</font><font size="2">own expense, and that</font> <b><font size="2">KUMAR</font></b> <font size="2">has seven (7) calendar days after its execution to revoke the Revised Agreement.</font></p>

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<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><b><font size="2">17.</font></b></p>
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<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: justify"><u><b><font size="2">ENTIRE AGREEMENT</font></b></u><b><font size="2">:</font></b></p>
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<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0.5in; TEXT-ALIGN: justify"><font size="2">This Revised Separation Agreement and Complete Release of Liability, together with any previously signed confidentiality and patent agreements, constitutes the complete and entire Agreements between the Parties relating to the termination of the employment relationship and supersedes any and all previous agreements, representations or understandings regarding termination of
benefits. These Agreements may not be changed, modified or terminated unless such changes are made in writing and signed by both Parties. Any previously signed confidentiality or patent agreement shall remain in effect following termination of the employment relationship and execution of this Revised Agreement.</font> <font color="#333333"><font size="2">This Revised Agreement has been separately negotiated and is intended to terminate, void and/or supersede the Severance Agreement
dated</font> <b><font size="2">June 5, 2006</font></b><font size="2">, between the Parties, which is hereby terminated.</font></font></p>

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<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><b><font size="2">18.</font></b></p>
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<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: justify"><u><b><font size="2">SEVERABILITY</font></b></u><b><font size="2">:</font></b></p>
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<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0.5in; TEXT-ALIGN: justify"><font size="2">Should any portion of this Revised Agreement be ruled invalid, it shall not affect the remaining provisions of this Revised Agreement, which shall remain in full force and effect.</font></p>

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<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><b><font size="2">19.</font></b></p>
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<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: justify"><u><b><font size="2">GOVERNING LAW</font></b></u><b><font size="2">:</font></b></p>
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<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0.5in; TEXT-ALIGN: justify"><font size="2">The Parties agree that any disputes regarding this Revised Separation Agreement shall be governed by the laws of the State of Michigan, without regard to any conflicts or choice of law rule or principle that might otherwise refer&nbsp;</font></p>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right"><font size="2">Initial Here: ___</font></p>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center"><font size="2">8</font></p>
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<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center"><font size="2"><strong>ENERGY CONVERSION DEVICES, INC.</strong></font></p>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0.5in; TEXT-ALIGN: justify"><font size="2"><font size="2">construction or interpretation of this provision to the substantive law of another jurisdiction.</font></font></p>

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<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><b><font size="2">20.</font></b></p>
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<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><u><b><font size="2">ARBITRATION OF DISPUTES</font></b></u><b><font size="2">:</font></b></p>
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<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0.5in; TEXT-ALIGN: justify"><font size="2"><font size="2">The Parties agree that any dispute over the terms of this Revised Agreement or its enforcement shall be resolved exclusively by final and binding arbitration pursuant to the Employment Arbitration Rules and Mediation Procedures of the American Arbitration Association. The award of the arbitrator may be enforced in the federal or circuit courts for Oakland County,
Michigan.</font> <b><font size="2">ECD</font></b> <font size="2">and KUMAR retain the right to seek equitable relief pending the outcome of the arbitration proceedings with jurisdiction and venue agreed to by the Parties in federal or circuit courts for Oakland County, Michigan.</font></font></p>

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<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><b><font size="2">21.</font></b></p>
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<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left"><b><font size="2">CODE SECTION 409A.</font></b></p>
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<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0.5in; TEXT-ALIGN: justify"><font size="2">This Agreement shall be interpreted to ensure that the payments made hereunder are exempt from, or comply with, Code Section 409A; provided, however, that nothing in this Agreement shall be interpreted or construed to transfer any liability for any tax (including a tax or penalty due as a result of a failure to comply with 409A) from</font> <b><font size="2">KUMAR</font></b>
<font size="2">to</font> <b><font size="2">ECD</font></b> <font size="2">or to any other individual or entity. If</font> <b><font size="2">KUMAR</font></b> <font size="2">is a &ldquo;specified employee&rdquo; under Code Section 409A upon termination of employment, and any payments are required to be delayed under Code Section 409A(a)(2)(B)(i), such delayed payments will be aggregated and paid in a cash lump sum on the first day of the seventh month following KUMAR&rsquo;S
termination of employment.</font></p>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in; TEXT-ALIGN: justify">&nbsp;</p>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; TEXT-INDENT: 0.5in; TEXT-ALIGN: justify"><font size="2">IN WITNESS WHEREOF, we have set our hands the day and year first written below.</font></p>

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<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: justify"><font size="2">Dated: August 28, 2008</font></p>
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<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: justify"><u><font size="2">/s/ Sanjeev Kumar</font></u></p>
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<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: justify"><b><font size="2">SANJEEV KUMAR</font></b></p>
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<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: justify">&nbsp;</p>

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<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0in; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: justify"><b><font size="2"><strong>ENERGY CONVERSION DEVICES, INC.</strong></font></b></p>
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<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0in; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: justify"><u><font size="2">By: /s/ Art Rogers</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">Dated: August 28, 2008</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">Its: V.P.&ndash;Human Resources &amp; Administration</font></p>
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<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right"><font size="2">Initial Here: ___</font></p>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center"><font size="2">9</font></p>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font SIZE=2>ENERGY CONVERSION DEVICES, INC.</font></p>

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

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

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:center;'><u><b><font size=2>Reaffirmation of Revised Separation Agreement</font></b></u></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>On August 28, 2008 I signed this Revised Separation Agreement.  I am re-signing this Revised Agreement today, including the release of all claims from the date of my original signature through August 31, 2008.</font></p>


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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Dated: September 2, 2008</font></p> </td> </tr></table>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:.0in'><font size=1>&nbsp;</font></p> </td>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><B><font SIZE=2>/s/ Sanjeev Kumar</font></B></p> </td> </tr>


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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:.5in'><font size=1>&nbsp;</font></p> </td>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><B><font SIZE=2>SANJEEV KUMAR</font></B></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>



<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right"><font size="2">Initial Here: ___</font></p>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center"><font size="2">10</font></p>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font SIZE=2>ENERGY CONVERSION DEVICES, INC.</font></p>

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

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

<p style=' margin-bottom:18pt; margin-top:0pt;text-align:CENTER;'>
<B><font SIZE=2>EXHIBIT "A"</font></B></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:center;'><U><B><font SIZE=2>SCOPE OF RELEASE</font></B></U></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.56in;text-align:justify;'><font size=2>This Release of all claims by the employee, as part of this Revised Separation Agreement, is intended and understood by all parties to release </font><u><font size=2>all</font></u><font size=2> claims by employee, without limitation, relating to the employment relationship.  The list set forth below is a representative sample of the types of employment-related claims being released by the employee and is </font><u><font size=2>not</font></u><font size=2> intended to be a complete list.</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.52in;text-align:justify;'><u><b><font size=2>Federal Law</font></b></u><b><font size=2>:  </font></b><font size=2>Title VII of the Civil Rights Act of 1964 (race, color, religion, national origin or sex); the 1991 Civil Rights Act; the Age Discrimination in Employment Act of 1967 (age); the Older Workers Benefit Protection Act ("OWBPA") (age); the Vocational Rehabilitation Act of 1973 (handicap); The Americans with Disabilities Act of 1990 (Handicap); 42 U.S.C. Section 1981, 1986 and 1988 (race); the Sarbanes-Oxley Act of 2002; the Employee Retirement Income Security Act (ERISA) (Pension and employee benefits); the Equal Pay Act of 1963 (prohibits pay differentials based on sex); the Immigration Reform and Control Act of 1986; Executive Order 11246 (race, color, religion, sex or national origin); Executive Order 11141 (age); Vietnam Era Veterans Readjustment Assistance Act of 1974 (Vietnam era veterans and disabled
veterans); the Federal Railroad Safety Act (45 U.S.C. Section 421 </font><i><font size=2>et. seq.</font></i><font size=2>); Section 301 of the Labor Management Relations Act, 29 U.S.C. Section 185 </font><u><font size=2>et</font></u><font size=2>. </font><u><font size=2>seq</font></u><font size=2>. (suits for breach of the Collective Bargaining Agreement); the Fair Labor Standards Act (minimum wage and overtime pay); the Labor Management Relations Act (rights protected by the National Labor Relations Board); the Occupational Safety and Health Act (safety matters); the Worker Adjustment and Retraining Notification Act (&#147;WARN&#148;) (notification requirements for employers who are curtailing or closing an operation), the Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA) (which provides health insurance continuation coverage for eligible employees), the Family and Medical Leave Act of 1993 (&#147;FMLA&#148;), and Federal Common Law.</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.52in;text-align:justify;'><u><b><font size=2>Michigan Law</font></b></u><b><font size=2>:</font></b><font size=2>  The Elliot-Larsen Civil Rights Act (race, color, religion, national origin, age, sex, marital status, height and weight) and any and all derivative claims; the Michigan Persons With Disabilities Act (handicap); the Michigan Wage Payment Act (MCLA 408.471) (wages and benefits); AIDS Testing and Confidentiality Act; Equal Pay; the Polygraph Protection Act of 1981 (restrictions on the use of polygraphs); Whistleblower Protection; Jury Service; Subpoenaed Victim; Job Reference Immunity; all as amended, and the common law of the State of Michigan; tort; breach of express or implied employment contract; wrongful discharge; workers' compensation retaliation; tortious interference with contractual relations and loss of consortium, constructive discharge or any other law applicable to the employment relationship.</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.52in;text-align:justify;'><U><B><font SIZE=2>NOTICE</font></B></U><font size=2>:  Should you have any questions regarding the scope of this Release, it is strongly recommended that you seek the advice of an attorney of your choosing, and at your own expense, </font><u><font size=2>before</font></u><font size=2> signing this Revised Agreement.</font></p>


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



<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right"><font size="2">Initial Here: ___</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>11</font></p>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font SIZE=2>ENERGY CONVERSION DEVICES, INC.</font></p>

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

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

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:center;'>
<U><B><font SIZE=2>ACKNOWLEDGEMENT OF RECEIPT OF SEPARATION AGREEMENT ONLY</font></B></U></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:center;'><u><i><b><font size=2>[EMPLOYEE COPY]</font></b></i></u></p>

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

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.57in;text-align:justify;'><font size=2>I acknowledge that I received today a copy of the Separation Agreement and Complete Release of Liability.  I have been advised of the following:</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=2>1)</font></p> </td>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>That I have </font><b><font size=2>Twenty-One (21)</font></b><font size=2> </font><b><font size=2>calendar days</font></b><font size=2> to consider this Agreement.</font></p> </td> </tr></table>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12.0pt'><font size=1>&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=2>2)</font></p> </td>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>That I have the opportunity to discuss with </font><B><font SIZE=2>ECD</font></B><font size=2> any questions or concerns I may have over the terms or language of the Agreement.</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=2>3)</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>That I have been advised to see an attorney of my choosing, at my own expense, to review the Agreement.</font></p> </td> </tr></table>
</div>



<div align=left>

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        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12.0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>4)</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>That I should not sign the Agreement unless I fully understand its terms and enter into the Agreement of my own free will.</font></p> </td> </tr></table>
</div>



<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12.0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>5)</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>That I have seven (7) calendar days after signing the Agreement to revoke the Agreement.</font></p> </td> </tr></table>
</div>



<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
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        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12.0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>6)</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>That no other promises have been made to me beyond the terms of this Separation Agreement and Complete Release of Liability.</font></p> </td> </tr></table>
</div>


<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>


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<table border="0" cellspacing=0 cellpadding=0 width="183" style='border-collapse:collapse; '>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Dated:  August 28, 2008</font></p> </td> </tr></table>
</div>

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


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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:.0in'><font size=1>&nbsp;</font></p> </td>
        <td width="260" nowrap valign=top style='padding:0in 0in 0in 0in; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><B><font SIZE=2>/s/ Sanjeev Kumar</font></B></p> </td> </tr>


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        <td width="240" nowrap valign=top style='padding:0in 0in .25in 0in; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:.5in'><font size=1>&nbsp;</font></p> </td>
        <td width="260" nowrap valign=top style='padding:0in 0in .25in 0in; border-top: black solid 1px '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><B><font SIZE=2>SANJEEV KUMAR</font></B></p> </td> </tr></table>
</div>




<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right"><font size="2">Initial Here: ___</font></p>


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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>12</font></p>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font SIZE=2>ENERGY CONVERSION DEVICES, INC.</font></p>

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

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

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:center;'>
<U><B><font SIZE=2>ACKNOWLEDGEMENT OF RECEIPT OF SEPARATION AGREEMENT ONLY</font></B></U></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:center;'><u><i><b><font size=2>[EMPLOYER COPY]</font></b></i></u></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.57in;text-align:justify;'><font size=2>I acknowledge that I received today a copy of the Separation Agreement and Complete Release of Liability.  I have been advised of the following:</font></p>


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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12.0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>1)</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>That I have </font><b><font size=2>Twenty-One (21)</font></b><font size=2> </font><b><font size=2>calendar days</font></b><font size=2> to consider this Agreement.</font></p> </td> </tr></table>
</div>



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<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12.0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>2)</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>That I have the opportunity to discuss with </font><B><font SIZE=2>ECD </font></B><font size=2>any questions or concerns I may have over the terms or language of the Agreement.</font></p> </td> </tr></table>
</div>



<div align=left>

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    <tr >
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12.0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>3)</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>That I have been advised to see an attorney of my choosing, at my own expense, to review the Agreement.</font></p> </td> </tr></table>
</div>



<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12.0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>4)</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>That I should not sign the Agreement unless I fully understand its terms and enter into the Agreement of my own free will.</font></p> </td> </tr></table>
</div>



<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12.0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>5)</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>That I have seven (7) calendar days after signing the Agreement to revoke the Agreement.</font></p> </td> </tr></table>
</div>



<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
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        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12.0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>6)</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>That no other promises have been made to me beyond the terms of this Separation Agreement and Complete Release of Liability.</font></p> </td> </tr></table>
</div>


<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1in; text-indent:-0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>


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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Dated:  August 28, 2008</font></p> </td> </tr></table>
</div>



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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:.0in'><font size=1>&nbsp;</font></p> </td>
        <td width="260" nowrap valign=top style='padding:0in 0in 0in 0in; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><B><font SIZE=2>/s/ Sanjeev Kumar</font></B></p> </td> </tr>


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        <td width="240" nowrap valign=top style='padding:0in 0in .25in 0in; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:.5in'><font size=1>&nbsp;</font></p> </td>
        <td width="260" nowrap valign=top style='padding:0in 0in .25in 0in; border-top: black solid 1px '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><B><font SIZE=2>SANJEEV KUMAR</font></B></p> </td> </tr></table>
</div>


<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right"><font size="2">Initial Here: ___</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>13</font></p>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font SIZE=2>ENERGY CONVERSION DEVICES, INC.</font></p>

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

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

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:center;'>
<U><B><font SIZE=2>WAIVER OF 21-DAY REVIEW PERIOD-OPTIONAL</font></B></U></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.57in;text-align:justify;line-height:200%;'><font size=2>I acknowledge that I was provided with a copy of the Separation Agreement and Complete Release of Liability on </font><b><font size=2>July 18, 2008.</font></b><font size=2>  I have had an opportunity to review the Agreement, have been afforded the opportunity to have it reviewed by an attorney of my choosing, at my own expense, and have made the decision to execute the Agreement prior to the expiration of the </font><b><font size=2>Twenty-One (21) Calendar Day</font></b><font size=2> review period.  Therefore, I have executed the Separation Agreement and Complete Release of Liability today, and I understand that I have seven (7) calendar days from today to revoke the Agreement.  All payments under the terms of the Separation Agreement will begin no earlier than the first payroll following </font><b><font size=2>August 31, 2008</font></b><font size=2> or the eighth (8th)
day after execution of this Agreement, whichever is later.</font></p>


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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Dated:  _______, 2008</font></p> </td> </tr></table>
</div>


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<table border="0" cellspacing=0 cellpadding=0 width="500" style='border-collapse:collapse; '>

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        <td width="240" nowrap valign=top style='padding:0in 0in 0in 0in; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:.0in'><font size=1>&nbsp;</font></p> </td>
        <td width="260" nowrap valign=top style='padding:0in 0in 0in 0in; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><B><font SIZE=2>/s/ Sanjeev Kumar</font></B></p> </td> </tr>


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        <td width="240" nowrap valign=top style='padding:0in 0in .25in 0in; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:.5in'><font size=1>&nbsp;</font></p> </td>
        <td width="260" nowrap valign=top style='padding:0in 0in .25in 0in; border-top: black solid 1px '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><B><font SIZE=2>SANJEEV KUMAR</font></B></p> </td> </tr></table>
</div>


<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: right"><font size="2">Initial Here: ___</font></p>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>14</font></p>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font SIZE=2>ENERGY CONVERSION DEVICES, INC.</font></p>

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

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

<p style=' margin-bottom:6pt; margin-top:0pt; text-indent:0.15in;text-align:center;'>
<font size=2>Exhibit B</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.15in;text-align:center;'><font size=2>&nbsp;</font></p>


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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12.0pt;line-height:124.2%'><font size=1>&nbsp;</font></p> </td>
        <td width="24" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;line-height:124.2%'><font size=4><b>&#149;</b></font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt;line-height:124.2%'><font size=2>*</font></p> </td> </tr></table>
</div>



<div align=left>

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    <tr >
        <td width="129" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12.0pt;line-height:124.2%'><font size=1>&nbsp;</font></p> </td>
        <td width="24" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;line-height:124.2%'><font size=4><b>&#149;</b></font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt;line-height:124.2%'><font size=2>*</font></p> </td> </tr></table>
</div>



<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="129" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12.0pt;line-height:124.2%'><font size=1>&nbsp;</font></p> </td>
        <td width="24" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;line-height:124.2%'><font size=4><b>&#149;</b></font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt;line-height:124.2%'><font size=2>*</font></p> </td> </tr></table>
</div>



<div align=left>

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    <tr >
        <td width="129" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12.0pt;line-height:124.2%'><font size=1>&nbsp;</font></p> </td>
        <td width="24" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;line-height:124.2%'><font size=4><b>&#149;</b></font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt;line-height:124.2%'><font size=2>*</font></p> </td> </tr></table>
</div>



<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="129" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12.0pt;line-height:124.2%'><font size=1>&nbsp;</font></p> </td>
        <td width="24" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;line-height:124.2%'><font size=4><b>&#149;</b></font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt;line-height:124.2%'><font size=2>*</font></p> </td> </tr></table>
</div>



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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;line-height:124.2%'><font size=4><b>&#149;</b></font></p> </td>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt;line-height:124.2%'><font size=2>*</font></p> </td> </tr></table>
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        <td width="129" valign=top style='padding:0in 0in 12.0pt 0in'>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;line-height:124.2%'><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;line-height:124.2%'><font size=4><b>&#149;</b></font></p> </td>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12.0pt;line-height:124.2%'><font size=1>&nbsp;</font></p> </td>
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<DOCUMENT>
<TYPE>EX-10.2
<SEQUENCE>3
<FILENAME>ex10p2_amendment1-2006sip.htm
<DESCRIPTION>AMENDMENT NO. 1 TO 2006 STOCK INCENTIVE PLAN
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><small>AMENDMENT</small> <small>NO.</small> 1 </b></p>

<p style=' margin-bottom:6pt; margin-top:0pt;text-align:center;'><b><small>TO</small></b></p>

<p style=' margin-bottom:6pt; margin-top:0pt;text-align:center;'><b><small>ENERGY CONVERSION DEVICES, INC.</small></b></p>

<p style=' margin-bottom:6pt; margin-top:0pt;text-align:center;'><b><small>2006 STOCK INCENTIVE PLAN</small></b></p>

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

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<p style=' margin-bottom:6pt; margin-top:0pt; text-indent:0.5in;text-align:left;padding-top:12;'><font size=2>This Amendment No. 1 amends the Energy Conversion Devices, Inc. 2006 Stock Incentive Plan as follows:</font></p>

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


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            <p ><font size=2>1. </font></p> </td>
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            <p ><font size=2>Effective as of September 30, 2008, the first sentence of Section 3.2(b) is modified to read:</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt; margin-left:0.5in;text-align:left;'><font size=2>The Committee shall establish the Restriction Period for each Stock Award which, except for Stock Awards granted to newly hired employees, shall be no less than one year, in the case of Stock Awards subject to Performance Measures, and three years, in the case of all other Stock Awards.</font></p>

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


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            <p ><font size=2>2. </font></p> </td>
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            <p ><font size=2>Section 5.8(a)(2)(a) is clarified to read:</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:6pt; margin-top:0pt; margin-left:0.5in;text-align:left;'><font size=2>(a) in the case of an option or Stock Appreciation Right, the number of Common Shares then subject to such option or Stock Appreciation Right, multiplied by the excess, if any, of the Fair Market Value of a Common Share on the date of occurrence of the Change in Control, over the purchase price or grant price, as the case may be, per Common Share subject to the option or Stock Appreciation Right </font></p>

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

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

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

<p style=' margin-bottom:6pt; margin-top:0pt;text-align:left;'><font size=2>____________________________</font></p>

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            <p ><font size=2>The 2006 Stock Incentive Plan was adopted and approved by the Compensation Committee of the Board of Directors on September 25, 2006 and approved by the Stockholders on November 14, 2006.  These amendments should be read in conjunction with the 2006 Stock Incentive Plan, a copy of which has been filed as an exhibit to ECD&#146;s Proxy Statement dated October 12, 2006.
</font></p> </td> </tr></table>
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<DOCUMENT>
<TYPE>EX-10.3
<SEQUENCE>4
<FILENAME>ex10p3_form-perfshareaward.htm
<DESCRIPTION>FORM OF PERFORMANCE SHARE AWARD AGREEMENT
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<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"><font size="2">Energy Conversion Devices, Inc.</font></p>

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<p><font size="2">Form of Performance Share Award Agreement</font></p>
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<p align="right"><font size="2">Page</font> <font size="2">1 of 15</font></p>
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<p style="MARGIN: 0in 0in 0pt; TEXT-INDENT: 0in"><b><font size="2">Participant:</font></b></p>
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<p><b><font size="2">Grant Date:</font></b></p>
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<p><font size="2">, 2008</font></p>
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<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"><b><font size="2">Target Number of</font></b></p>

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<p style="MARGIN: 0in 0in 0pt; TEXT-INDENT: 0in"><b><font size="2">Performance Shares:</font></b></p>
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<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 18pt; TEXT-INDENT: 0.5in; TEXT-ALIGN: left"><font size="2">This Performance Share Award Agreement (&ldquo;Agreement&rdquo;), dated as of the Grant Date, is entered into by and between Energy Conversion Devices, Inc., a Delaware corporation (the &ldquo;Company&rdquo;), and the Participant under the Company&rsquo;s 2006 Stock Incentive Plan (the &ldquo;Plan&rdquo;). The purpose of the performance share award is to reward key members of the
management leadership team for their contributions to the success of the Company in achieving its long-term performance goals. In particular, the performance share award focuses on the achievement of specific nameplate capacity goals at acceptable levels of gross margin.</font></p>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 18pt; TEXT-INDENT: 0.5in; TEXT-ALIGN: left"><font size="2">Certain terms are set forth in Exhibit A and the performance goals for this award are set forth in Exhibit B. Exhibits A and B are part of this Agreement. The words &ldquo;you,&rdquo; &ldquo;your,&rdquo; and similar terms refer to the Participant to whom this Award is granted.</font></p>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 18pt; TEXT-INDENT: 0.5in; TEXT-ALIGN: left"><font size="2">1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><u><font size="2">Definitions and the Plan</font></u><font size="2">. All capitalized terms that are not otherwise defined in this Agreement have the meanings set forth in the Plan, the text of which is incorporated into this Agreement by reference. In case of any conflict between this Agreement and the Plan, the terms of
the Plan shall control.</font></p>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 18pt; TEXT-INDENT: 0.5in; TEXT-ALIGN: left"><font size="2">2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><u><font size="2">Number of Shares</font></u><font size="2">.</font></p>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 18pt; TEXT-INDENT: 1in; TEXT-ALIGN: left"><font size="2">(a)&nbsp;&nbsp;&nbsp;&nbsp;The target number of Performance Shares subject to this Agreement is set forth above. The actual number of Performance Shares to be paid will be based on the achievement of the performance goals, as described in Section 3, below. A &ldquo;Performance Share&rdquo; is a Restricted Stock Unit and has a nominal value equal to the Fair Market Value of one
Share.</font></p>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 18pt; TEXT-INDENT: 1in; TEXT-ALIGN: left"><font size="2">(b)&nbsp;&nbsp;&nbsp;&nbsp;The number of Performance Shares shall be adjusted to reflect certain events affecting the Company&rsquo;s capitalization in accordance with Section 5.7 of the Plan.</font></p>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 18pt; TEXT-INDENT: 0.5in; TEXT-ALIGN: left"><font size="2">3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><u><font size="2">Vesting</font></u><font size="2">. The Performance Shares (</font><i><font size="2">i.e.</font></i><font size="2">, your rights to receive Shares) in this Award are subject to forfeiture until they are earned and vested. You earn the Performance Shares based on the achievement of performance goals
identified in Exhibit B, provided that you remain employed by the Company until the end of the Restriction Period. After the completion of the Restriction Period, the Committee shall assess the level of performance achieved relative to the goals and determine the number of Performance Shares you earn. Section 6, below, addresses the treatment of Performance Shares upon a termination of employment before the end of the Restriction Period, and Section 7, below, addresses the treatment
of Performance Shares upon a Change of Control.</font></p>
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<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"><font size="2">Energy Conversion Devices, Inc.</font></p>

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<p style="MARGIN-TOP: 7pt; MARGIN-BOTTOM: 0pt; BORDER-BOTTOM: black 2.25pt double; TEXT-ALIGN: left">&nbsp;</p>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 18pt; TEXT-INDENT: 0.5in; TEXT-ALIGN: left"><font size="2">4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><u><font size="2">Payment</font></u><font size="2">. The Shares represented by the vested Performance Shares shall be delivered to you by December 31 following the end of the Restriction Period, except if you have made a valid deferral election in a manner specified by the Committee. Payment in Shares shall be subject to
the Restrictions on Delivery and Resale set forth below. No partial Shares shall be paid; the number of Shares shall be rounded to the nearest whole number of Shares.</font></p>

<p style="MARGIN-TOP: 3pt; MARGIN-BOTTOM: 18pt; TEXT-INDENT: 0.5in; TEXT-ALIGN: left"><font size="2">5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><u><font size="2">Rights of the Participant as Shareholder</font></u><font size="2">.</font></p>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 18pt; TEXT-INDENT: 1in; TEXT-ALIGN: left"><font size="2">(a)&nbsp;&nbsp;&nbsp;&nbsp;This Agreement does not give you any rights of a stockholder. However, if these Performance Shares are settled in Shares, you will gain stockholder rights when Shares are transferred to you.</font></p>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 18pt; TEXT-INDENT: 1in; TEXT-ALIGN: left"><font size="2">(b)&nbsp;&nbsp;&nbsp;&nbsp;You are eligible to receive payments equivalent to dividends or other distributions with respect to Performance Shares underlying Shares only if so indicated in Exhibit A of this Agreement. As indicated in Exhibit A, any such payments shall be either (i)&nbsp;subject to forfeiture until the applicable Performance Shares vest and paid on the date of payment of
the Performance Shares, or (ii)&nbsp;subject to forfeiture until the dividend or distribution date and paid on that date.</font></p>

<p style="MARGIN-TOP: 3pt; MARGIN-BOTTOM: 18pt; TEXT-INDENT: 0.5in; TEXT-ALIGN: left"><font size="2">6.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><u><font size="2">Termination of Service</font></u><font size="2">.</font></p>

<p style="MARGIN-TOP: 3pt; MARGIN-BOTTOM: 18pt; TEXT-INDENT: 1.06in; TEXT-ALIGN: left"><font size="2">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Termination of Employment by Reason of Retirement, Death, or Disability on or after Pro-Rated Payment Eligibility Date. If the Participant terminates employment with the Company or any Affiliate thereof, including if the Participant's employer ceases to be an Affiliate of the Company (&ldquo;Termination of Employment&rdquo;), after the
Participant attains age 65 (&ldquo;Retirement&rdquo;) or by reason of death or disability, and such Termination of Employment occurs on or after the Pro-Rated Payment Eligibility Date (as set forth in Exhibit A), the number of Performance Shares that would be paid to the Participant if the Participant had not terminated employment shall be prorated as follows (and, in the case of the Participant&rsquo;s death, paid to the Participant&rsquo;s beneficiary). The number of Performance
Shares that otherwise would be paid to the Participant shall be multiplied by a fraction, the numerator of which is the number of full or partial months from the first day of the Restriction Period, until the date of the Participant&rsquo;s Termination of Employment, and the denominator of which is the number of full or partial months during the Restriction Period. For purposes of this paragraph, &ldquo;disability&rdquo; shall be determined by the Committee in its sole
discretion.</font></p>

<p style="MARGIN-TOP: 3pt; MARGIN-BOTTOM: 18pt; TEXT-INDENT: 1.06in; TEXT-ALIGN: left"><font size="2">(b) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other Termination of Employment. If the Participant's Termination of Employment prior to the end of the Restriction Period is for any reason other than Retirement, death, disability (as determined above) or if the Termination of Employment occurs before the Pro-Rated Payment Eligibility Date, except as provided in Section 7 or as provided by
the Committee, the Participant&rsquo;s Performance Shares shall be forfeited.</font></p>

<p style="MARGIN-TOP: 3pt; MARGIN-BOTTOM: 18pt; TEXT-INDENT: 0.5in; TEXT-ALIGN: left"><font size="2">7.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><u><font size="2">Change in Control</font></u><font size="2">. If a Change in Control occurs during the Restriction Period, the following shall occur:</font></p>
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<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"><font size="2">Energy Conversion Devices, Inc.</font></p>

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<p><font size="2">Form of Performance Share Award Agreement</font></p>
</td>

<td valign="top" nowrap width="80">
<p align="right"><font size="2">Page</font> <font size="2">3 of 15</font></p>
</td>
</tr>
</table>
</div>

<p style="MARGIN-TOP: 7pt; MARGIN-BOTTOM: 0pt; BORDER-BOTTOM: black 2.25pt double; TEXT-ALIGN: left">&nbsp;</p>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

<p style="MARGIN-TOP: 3pt; MARGIN-BOTTOM: 18pt; TEXT-INDENT: 1.06in; TEXT-ALIGN: left"><font size="2">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If, in connection with the Change in Control, each outstanding Share is converted into a class of shares that are publicly traded, there shall be substituted for each Share subject to the Performance Shares (as determined under subparagraph (c)), the number and class of shares into which each outstanding Share shall be converted pursuant
to such Change in Control. The Performance Shares shall remain an unfunded promise to pay shares on the payment date determined under this Agreement.</font></p>

<p style="MARGIN-TOP: 3pt; MARGIN-BOTTOM: 18pt; TEXT-INDENT: 1.06in; TEXT-ALIGN: left"><font size="2">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If, in connection with the Change in Control, each outstanding Share is</font> <i><font size="2">not</font></i> <font size="2">converted into a class of shares that are publicly traded, in lieu of each Share subject to the Performance Share (as determined under subparagraph (c)), there shall be credited to a hypothetical account for the
Participant on the date of the Change in Control a vested amount equal to the Fair Market Value of one Share immediately before the Change in Control, and such amount shall be increased by interest at a rate equal to 1% plus the prime rate as published by the Wall Street Journal on the date of the Change in Control (or, if not published on that date, on the most recent business day before the Change in Control, or, if not published on that date, as determined by the Committee
immediately before the Change in Control), and shall be paid at t he time specified in Section 4, except as follows. In the event of a &ldquo;409A Change in Control,&rdquo; the amount that otherwise would be credited to the Participant&rsquo;s hypothetical account pursuant to the preceding sentence shall instead be paid to the Participant in a lump sum on the date of the Change in Control. For purposes of the preceding sentence, a &ldquo;409A Change in Control&rdquo; is a Change in
Control (a) for which each outstanding Share is</font> <i><font size="2">not</font></i> <font size="2">converted into a class of shares that are publicly traded, and (b) which constitutes a change in control for purposes of Section 409A of the Code.</font></p>

<p style="MARGIN-TOP: 3pt; MARGIN-BOTTOM: 18pt; TEXT-INDENT: 1.06in; TEXT-ALIGN: left"><font size="2">(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For purposes of subsections (a) and (b), the Shares subject to the Performance Shares shall be the target number of Performance Shares (determined without regard to the performance targets specified in Exhibit B) or, if higher, the number of Performance Shares determined based on the performance targets specified in Exhibit B, to the
extent the Committee determines such amount before the Change in Control.</font></p>

<p style="MARGIN-TOP: 3pt; MARGIN-BOTTOM: 18pt; TEXT-INDENT: 1.06in; TEXT-ALIGN: left"><font size="2">(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Performance Shares shall be paid at the time specified in Section 4, except as provided in subsection (b) above with respect to a 409A Change in Control, provided that the Participant either (i) continues to be employed by the Company until the end of the Restriction Period, or (ii) the Participant&rsquo;s Termination of Employment
occurs following a Change in Control either by the Company or an Affiliate other than for Cause (as defined below) or by the Participant for Good Reason (as defined below). For purposes of this subjection (c):</font></p>

<p style="MARGIN-TOP: 3pt; MARGIN-BOTTOM: 18pt; MARGIN-LEFT: 0.5in; TEXT-ALIGN: left"><font size="2">"Cause" means the occurrence of one or more of the following: (i) the Participant is convicted of, pleads guilty to, or confesses to any felony or any act of fraud, misappropriation or embezzlement which has an immediate and materially adverse effect on the Company or any of its Affiliates, as determined by the Committee in good faith in its sole discretion, (ii) the Participant
engages in a fraudulent act to the material damage or prejudice of the Company or any of its Affiliates or in conduct or activities materially damaging to the property, business or reputation of the Company or any of its Affiliates, all as determined by the Committee in good faith in its sole discretion, (iii) any material act or</font></p>
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<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"><font size="2">Energy Conversion Devices, Inc.</font></p>

<div align="left">
<table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" border="0">
<tr>
<td valign="top" nowrap width="540">
<p><font size="2">Form of Performance Share Award Agreement</font></p>
</td>

<td valign="top" nowrap width="80">
<p align="right"><font size="2">Page</font> <font size="2">4 of 15</font></p>
</td>
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<p style="MARGIN-TOP: 7pt; MARGIN-BOTTOM: 0pt; BORDER-BOTTOM: black 2.25pt double; TEXT-ALIGN: left">&nbsp;</p>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

<p style="MARGIN-TOP: 3pt; MARGIN-BOTTOM: 18pt; MARGIN-LEFT: 0.5in; TEXT-ALIGN: left"><font size="2">omission by the Participant involving malfeasance or negligence in the performance of the Participant's duties to the Company or any of its Affiliates to the material detriment of the Company or any of its Affiliates, as determined by the Committee in good faith in its sole discretion, which has not been corrected by the Participant within 30 days after written notice of any such act
or omission, (iv) failure by the Participant to comply in any material respect with any written policies or directives of the Company or any of its Affiliates, or the Participant&rsquo;s material violation of the Company&rsquo;s code of conduct, as determined by the Committee in good faith in its sole discretion, which has not been corrected by the Participant within 30 days after written notice of such failure, or (v) material breach by the Participant of any noncompetition
agreement with the Company or any of its Affiliates, as determined by the Committee in good faith in its sole discretion. If the Participant is subject to a written employment agreement with the Company or any of its Affiliates, "Cause" has the meaning set forth in such employment agreement.</font></p>

<p style="MARGIN-TOP: 3pt; MARGIN-BOTTOM: 18pt; MARGIN-LEFT: 0.5in; TEXT-ALIGN: left"><font size="2">&ldquo;Good Reason&rdquo; means, without the consent of the Participant: (A) any material diminution in the Participant&rsquo;s base pay; (B) any material diminution in the Participant&rsquo;s authority, duties or responsibilities; or (C) a material change in the Participant&rsquo;s office location (which, for this purpose, means a change of more than 50 miles). For the avoidance of
doubt, &ldquo;Good Reason&rdquo; does not occur solely because the Company ceases to be publicly traded. In addition, a Participant does not terminate for Good Reason unless (A) the Participant gives the Vice President-HR (or, if the Participant is the Vice President-HR, the Chief Executive Officer or General Counsel of the Company) written notice within 90 days of the initial existence of the condition on which Good Reason is based, (B) the Company does not cure the condition
within 30 days of receiving such notice, and (C) the Participant terminates within one year following the initial existence of the condition.</font></p>

<p style="MARGIN-TOP: 3pt; MARGIN-BOTTOM: 18pt; TEXT-INDENT: 0.5in; TEXT-ALIGN: left"><font size="2">8.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><u><font size="2">Withholding</font></u><font size="2">.</font></p>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 10pt; TEXT-INDENT: 1in; TEXT-ALIGN: left"><font size="2">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company may be required to withhold income and employment taxes when it pays delivers Shares following a Restriction Period. To the extent that the Performance Shares are settled in Shares, the Company may not issue Shares until it determines that such withholding obligation has been satisfied. In the discretion of the Committee or its
designee, the Company may:</font></p>

<div align="left">
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<tr>
<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 6pt; PADDING-TOP: 0in" valign="top" width="110">
<p style="MARGIN: 0in 0in 6pt">&nbsp;</p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 6pt; PADDING-TOP: 0in" valign="top" width="20">
<p><font size="4"><b>&bull;</b></font></p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 6pt; PADDING-TOP: 0in" valign="top">
<p><font size="2">Retain Shares otherwise to be issued to you (whether under this Award or otherwise), or</font></p>
</td>
</tr>
</table>
</div>

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<table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" border="0">
<tr>
<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" width="110">
<p style="MARGIN: 0in 0in 12pt">&nbsp;</p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" width="20">
<p><font size="4"><b>&bull;</b></font></p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top">
<p><font size="2">Permit you to tender Shares.</font></p>
</td>
</tr>
</table>
</div>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 18pt; TEXT-ALIGN: left"><font size="2">Alternatively, you may be required to pay the Company an amount sufficient to satisfy the withholding obligation.</font></p>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 18pt; TEXT-INDENT: 1in; TEXT-ALIGN: left"><font size="2">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;You remain responsible at all times for paying any federal, state, and local income and employment taxes with respect to this Award. The Company is not responsible for any liability or penalty relating to taxes (including excise taxes) on compensation (including</font></p>
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<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"><font size="2">Energy Conversion Devices, Inc.</font></p>

<div align="left">
<table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" border="0">
<tr>
<td valign="top" nowrap width="540">
<p><font size="2">Form of Performance Share Award Agreement</font></p>
</td>

<td valign="top" nowrap width="80">
<p align="right"><font size="2">Page</font> <font size="2">5 of 15</font></p>
</td>
</tr>
</table>
</div>

<p style="MARGIN-TOP: 7pt; MARGIN-BOTTOM: 0pt; BORDER-BOTTOM: black 2.25pt double; TEXT-ALIGN: left">&nbsp;</p>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 18pt; TEXT-ALIGN: left"><font size="2">imputed compensation) or other income attributed to you (or your Beneficiary) pursuant to this Agreement, whether as a result of failing to make timely payments of tax or otherwise.</font></p>

<p style="MARGIN-TOP: 3pt; MARGIN-BOTTOM: 18pt; TEXT-INDENT: 0.5in; TEXT-ALIGN: left"><font size="2">9.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><u><font size="2">Nontransferability</font></u><font size="2">.</font></p>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 18pt; TEXT-INDENT: 1in; TEXT-ALIGN: left"><font size="2">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unless the Committee or its designee determines otherwise, you may not transfer the Performance Shares awarded under this Agreement.</font></p>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 18pt; TEXT-INDENT: 1in; TEXT-ALIGN: left"><font size="2">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unless otherwise required by law, your rights and interests under this Award may not be subject to lien, obligation, or liability.</font></p>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 18pt; TEXT-INDENT: 0.5in; TEXT-ALIGN: left"><font size="2">10.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><u><font size="2">Additional Restrictions on Delivery and Resale</font></u><font size="2">. Shares that are otherwise due to be provided under this Agreement shall not be delivered (if this Award is to be settled in Shares) and you may not sell any Shares awarded under this Agreement at a time when lifting the restrictions or sale
of the Shares would be prohibited under any applicable federal, state, local, or exchange laws, rules, or regulations (&ldquo;Applicable Law&rdquo;). If payment is delayed pursuant to this Section 10, payment shall be made no later</font> <font size="2">than the earliest date at which the Committee reasonably anticipates that the making of the payment will not cause a violation of Applicable Law.</font></p>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 18pt; TEXT-INDENT: 0.5in; TEXT-ALIGN: left"><font size="2">11.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><u><font size="2">Recoupment</font></u><font size="2">. The Company will, to the extent permitted by governing law, in all appropriate cases as determined by the Board, require, and the Participant shall pay, reimbursement to the Company of the gain realized on the Award where all of the following factors, as determined by the Board
(and whose determination shall be conclusive), are present: (a) the gain realized on the Award was attributable, at least in part, to the achievement of certain financial results that were subsequently the subject of a restatement, (b) the Participant engaged in fraud or intentional misconduct that was a substantial contributing cause to the need for the restatement, and (c) the Participant would have received less or no gain with respect to the Award based upon the restated
financial results. In each such instance, the Participant shall pay to the Company the entire gain realized by the Participant on the Award, plus a reasonable rate of interest. For purposes of this Section, a Participant&rsquo;s gain realized on the Award is the Fair Market Value (determined without regard to the restatement) of the Shares on the Vesting Date.</font></p>

<p style="MARGIN-TOP: 3pt; MARGIN-BOTTOM: 18pt; TEXT-INDENT: 0.5in; TEXT-ALIGN: left"><font size="2">12.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><u><font size="2">Notices</font></u><font size="2">.</font></p>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 18pt; TEXT-INDENT: 1in; TEXT-ALIGN: left"><font size="2">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any notice from you to the Company must be in writing and shall be deemed effective when it is received by the Company at the Company&rsquo;s principal office.</font></p>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 18pt; TEXT-INDENT: 1in; TEXT-ALIGN: left"><font size="2">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any notice from the Company to you must be in writing and shall be deemed effective when it is personally delivered to you or when</font><font size="2">it is deposited in the U.S. Mail, with postage and fees prepaid.</font></p>
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<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"><font size="2">Energy Conversion Devices, Inc.</font></p>

<div align="left">
<table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" border="0">
<tr>
<td valign="top" nowrap width="540">
<p><font size="2">Form of Performance Share Award Agreement</font></p>
</td>

<td valign="top" nowrap width="80">
<p align="right"><font size="2">Page</font> <font size="2">6 of 15</font></p>
</td>
</tr>
</table>
</div>

<p style="MARGIN-TOP: 7pt; MARGIN-BOTTOM: 0pt; BORDER-BOTTOM: black 2.25pt double; TEXT-ALIGN: left">&nbsp;</p>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 18pt; TEXT-INDENT: 0.5in; TEXT-ALIGN: left"><font size="2">13.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><u><font size="2">Not an Employment Contract</font></u><font size="2">. This Agreement is not an employment agreement and does not give you any right to continued employment (or other service relationship) with the Company or any Affiliate. Unless provided otherwise in a written agreement between you and the Company or an Affiliate,
your employment (or other service relationship) is &ldquo;at will&rdquo; and may be terminated at any time and for any reason.</font></p>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 18pt; TEXT-INDENT: 0.5in; TEXT-ALIGN: left"><font size="2">14.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><u><font size="2">Governing Law</font></u><font size="2">. This Agreement shall be governed by and interpreted in accordance with Delaware law, without regard to any principles of Delaware law that might direct resolution to the laws of a different jurisdiction.</font></p>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 18pt; TEXT-INDENT: 0.5in; TEXT-ALIGN: left"><font size="2">15.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><u><font size="2">Severability</font></u><font size="2">. If any provision in this Agreement is determined to be unenforceable or invalid, such invalidity or unenforceability shall not affect any other provision hereof, and the Plan shall be construed and enforced as if such provision had not been included.</font></p>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 18pt; TEXT-INDENT: 0.5in; TEXT-ALIGN: left"><font size="2">16.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><u><font size="2">Waiver</font></u><font size="2">. The waiver by you or the Company or an Affiliate of any provision of this Agreement at any time or for any purpose shall not operate as or be construed to be a waiver of the same or any other provision of this Agreement at any subsequent time or for any other purpose.</font></p>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 18pt; TEXT-INDENT: 0.5in; TEXT-ALIGN: left"><font size="2">17.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><u><font size="2">Interpretation and Construction</font></u><font size="2">. This Agreement shall be construed and interpreted by the Committee, in its sole discretion. Any interpretation or other determination by the Committee (including, but not limited to, correction of any defect or omission and reconciliation of any
inconsistency in the Agreement or the Plan) shall be binding and conclusive.</font></p>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 18pt; TEXT-INDENT: 0.5in; TEXT-ALIGN: left"><font size="2">18.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><u><font size="2">Headings</font></u><font size="2">. The headings in this Agreement are provided solely as a convenience to facilitate reference. The headings shall not be relevant for purposes of construing or interpreting any part of this Agreement.</font></p>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 24pt; TEXT-INDENT: 0.5in; TEXT-ALIGN: left"><font size="2">19.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><u><font size="2">Entire Understanding</font></u><font size="2">. This Agreement and the Plan constitute the entire understanding between you and the Company and its Affiliates regarding this Award. Any prior agreements, commitments, or negotiations concerning this Award are superseded.</font></p>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 24pt; TEXT-INDENT: 0.5in; TEXT-ALIGN: left"><font size="2">20.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><u><font size="2">Code Section 409A</font></u><font size="2">. This Agreement is intended, and shall be construed, to comply with the requirements of Section 409A of the Code. Payments made on account of a Termination of Employment shall be made upon a &ldquo;separation from service&rdquo; within the meaning for Section 409A of the
Code.</font></p>

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<p style="MARGIN: 0in 0in 0.25in">&nbsp;</p>
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<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0.25in; PADDING-TOP: 0in" valign="top" nowrap width="45%" colspan="2">
<p><font size="2">ENERGY CONVERSION DEVICES, INC.,</font></p>
</td>
</tr>

<tr>
<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0.25in; PADDING-TOP: 0in" valign="top" nowrap width="40%">
<p style="MARGIN: 0in 0in 0.25in">&nbsp;</p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0.25in; PADDING-TOP: 0in" valign="top" nowrap width="5%">
<p><font size="2">By:</font></p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" nowrap width="40%">
<p style="MARGIN: 0in 0in 0.25in; BORDER-BOTTOM: black 1px solid">&nbsp;</p>
</td>
</tr>

<tr>
<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0.25in; PADDING-TOP: 0in" valign="top" nowrap width="40%">
<p style="MARGIN: 0in 0in 0.25in">&nbsp;</p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0.25in; PADDING-TOP: 0in" valign="top" nowrap width="5%">
<p><font size="2">Title:</font></p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" nowrap width="40%">
<p style="MARGIN: 0in 0in 0.25in; BORDER-BOTTOM: black 1px solid">&nbsp;</p>
</td>
</tr>
</table>
</div>
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<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"><font size="2">Energy Conversion Devices, Inc.</font></p>

<div align="left">
<table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" border="0">
<tr>
<td valign="top" nowrap width="540">
<p><font size="2">Form of Performance Share Award Agreement</font></p>
</td>

<td valign="top" nowrap width="80">
<p align="right"><font size="2">Page</font> <font size="2">7 of 15</font></p>
</td>
</tr>
</table>
</div>

<p style="MARGIN-TOP: 7pt; MARGIN-BOTTOM: 0pt; BORDER-BOTTOM: black 2.25pt double; TEXT-ALIGN: left">&nbsp;</p>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

<p style="MARGIN-TOP: 7pt; MARGIN-BOTTOM: 18pt; TEXT-INDENT: 0.5in; TEXT-ALIGN: left"><font size="2">I have read this Agreement and the Plan, and I understand and agree to their terms and conditions.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 0.5in; TEXT-ALIGN: left">&nbsp;</p>

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<p style="MARGIN: 0in 0in 0.5in">&nbsp;</p>
</td>

<td valign="top" nowrap width="50%">
<p style="BORDER-TOP: black 1px solid; MARGIN: 0in 0in 0.5in"><font size="2">Participant&rsquo;s Signature</font></p>
</td>
</tr>

<tr>
<td valign="top" nowrap width="50%">
<p style="MARGIN: 0.5in 0in">&nbsp;</p>
</td>

<td valign="top" nowrap width="50%">
<p style="BORDER-TOP: black 1px solid; MARGIN: 0.5in 0in"><font size="2">Participant&rsquo;s Name (please print)</font></p>
</td>
</tr>
</table>
</div>
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<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"><font size="2">Energy Conversion Devices, Inc.</font></p>

<div align="left">
<table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" border="0">
<tr>
<td valign="top" nowrap width="540">
<p><font size="2">Form of Performance Share Award Agreement</font></p>
</td>

<td valign="top" nowrap width="80">
<p align="right"><font size="2">Page</font> <font size="2">8 of 15</font></p>
</td>
</tr>
</table>
</div>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; BORDER-BOTTOM: black 2.25pt double; TEXT-ALIGN: left">&nbsp;</p>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center">&nbsp;</p>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 6pt; TEXT-ALIGN: center"><b><font size="2">EXHIBIT A</font></b></p>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; TEXT-ALIGN: center"><b><font size="2">TERMS AND CONDITIONS</font></b></p>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center"><b><font size="2">Performance Share Award Agreement</font></b></p>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center"><b><font size="2">under the Energy Conversion Devices, Inc.</font></b></p>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 18pt; TEXT-ALIGN: center"><b><font size="2">2006 Stock Incentive Plan</font></b></p>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 18pt; TEXT-INDENT: 0.5in; TEXT-ALIGN: left"><font size="2">Pursuant to the Agreement above, Energy Conversion Devices, Inc., a Delaware corporation (the &ldquo;Company&rdquo;), grants to you Performance Shares with respect to shares of its common stock (the &ldquo;Shares&rdquo;). The terms and conditions of the Award are set forth in this Exhibit A, and in the Energy Conversion Devices, Inc. 2006 Stock Incentive Plan, as amended from time to
time (the &ldquo;Plan&rdquo;).</font></p>

<div align="center">
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<tr>
<td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="144">
<p style="MARGIN: 0in 0in 0.25in"><b><font size="2">Form of</font></b><br>
<b><font size="2">Payment</font></b></p>
</td>

<td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="547">
<p style="MARGIN: 0in 0in 0.25in"><font size="2">For each vested Performance Share, the Participant shall receive one Share. (No partial Shares shall be paid; the number of Shares shall be rounded to the nearest whole number of Shares.)</font></p>
</td>
</tr>

<tr>
<td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="144">
<p style="MARGIN: 0in 0in 0.25in">&nbsp;</p>
</td>

<td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="547">
<p style="MARGIN: 0in 0in 0.25in">&nbsp;</p>
</td>
</tr>

<tr>
<td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="144">
<p style="MARGIN: 0in 0in 0.25in"><b><font size="2">Restriction</font></b><br>
<b><font size="2">Period</font></b></p>
</td>

<td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="547">
<p style="MARGIN: 0in 0in 0.25in"><font size="2">The Restriction Period shall begin on _______</font> <b><font size="2">[July 1, 2008, except if employee became LTIP eligible after that date]</font></b> <font size="2">and end on _______________</font> <b><font size="2">[June 30, 2010, for 2-year awards; June 30, 2012, for 4-year awards]</font></b><font size="2">.</font></p>

<p style="MARGIN: 0in 0in 0.25in"><font size="2">Performance Shares are subject to both the performance goals set forth in Exhibit B as well as your continued employment with the Company until the expiration of the Restriction Period, except as otherwise provided in the Agreement.</font></p>
</td>
</tr>

<tr>
<td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="144">
<p style="MARGIN: 0in 0in 0.25in">&nbsp;</p>
</td>

<td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="547">
<p style="MARGIN: 0in 0in 0.25in">&nbsp;</p>
</td>
</tr>

<tr>
<td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="144">
<p style="MARGIN: 0in 0in 0.25in"><b><font size="2">Pro-Rated Payment Eligibility Date</font></b></p>
</td>

<td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="547">
<p style="MARGIN-BOTTOM: 0.25in"><font size="2">July 1, 2009 for FY2009-FY2010 performance share awards (for those hired or appointed after July 1, 2008, this date is the one-year anniversary of hire/promotion date)</font></p>

<p style="MARGIN-BOTTOM: 0.25in"><font size="2">July 1, 2010 for FY2009-FY2012 performance share awards (for those hired or appointed after July 1, 2008, this date is the two-year anniversary of hire/promotion date)</font></p>
</td>
</tr>
</table>
</div>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 7pt; TEXT-ALIGN: left">&nbsp;</p>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 18pt; TEXT-INDENT: 0.4in; TEXT-ALIGN: left"><i><b><font size="2">My initials at the end of this Exhibit A indicate that I understand and agree to the terms and conditions set forth in this Exhibit A, the Agreement, and the Plan.</font></b></i></p>

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<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" nowrap width="60"><font size="2"><b>Initials:</b></font></td>

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</td>
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</div>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 7pt; TEXT-ALIGN: left">&nbsp;</p>

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<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" nowrap width="60"><font size="2"><b>Date:</b></font></td>

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<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"><font size="2">Energy Conversion Devices, Inc.</font></p>

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<table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" border="0">
<tr>
<td valign="top" nowrap width="540">
<p><font size="2">Form of Performance Share Award Agreement</font></p>
</td>

<td valign="top" nowrap width="80">
<p align="right"><font size="2">Page</font> <font size="2">9 of 15</font></p>
</td>
</tr>
</table>
</div>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; BORDER-BOTTOM: black 2.25pt double; TEXT-ALIGN: left">&nbsp;</p>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center">&nbsp;</p>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 6pt; TEXT-ALIGN: center"><b><font size="2">EXHIBIT B [for the FY09-10 performance cycle]</font></b></p>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; TEXT-ALIGN: center"><b><font size="2">Performance Targets</font></b></p>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center"><small>PERFORMANCE</small> <small>SHARE</small> <small>AWARD</small> <small>AGREEMENT</small></p>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center"><small>UNDER</small> <small>THE</small> <small>ENERGY</small> <small>CONVERSION</small> <small>DEVICES,</small> <small>INC.</small></p>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center">2006 <small>STOCK</small> <small>INCENTIVE</small> <small>PLAN</small></p>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"><font size="2">Performance Shares are earned and shall vest based on the Company&rsquo;s nameplate capacity and gross margin, as illustrated below:</font></p>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

<div align="center">
<table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%">
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<td style="BORDER-RIGHT: black 1pt solid; PADDING-RIGHT: 5.4pt; BORDER-TOP: black 1pt solid; PADDING-LEFT: 5.4pt; BACKGROUND: #dfdfdf; PADDING-BOTTOM: 0in; BORDER-LEFT: black 1pt solid; PADDING-TOP: 0in; BORDER-BOTTOM: black 1pt solid" valign="Middle" width="130" rowspan="2">
<p style="MARGIN: 3pt 0in"><b><font size="2">Payout Level</font></b></p>

<p style="MARGIN: 3pt 0in"><b><font size="2">(% of target Performance Shares earned)</font></b></p>
</td>

<td style="BORDER-RIGHT: black 1pt solid; PADDING-RIGHT: 5.4pt; BORDER-TOP: black 1pt solid; PADDING-LEFT: 5.4pt; BACKGROUND: #dfdfdf; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: black 1pt solid" valign="Middle" colspan="4">
<p style="MARGIN: 3pt 0in; TEXT-ALIGN: center" align="center"><b><font size="2">Performance Goal</font></b></p>
</td>
</tr>

<tr>
<td style="BORDER-RIGHT: black 1pt solid; PADDING-RIGHT: 5.4pt; BORDER-TOP: medium none; PADDING-LEFT: 5.4pt; BACKGROUND: #dfdfdf; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: black 1pt solid" valign="Middle" width="126">
<p style="MARGIN: 3pt 0in"><b><font size="2">Nameplate Capacity</font></b><font size="2"><sup>1</sup></font></p>
</td>

<td style="BORDER-RIGHT: black 1pt solid; PADDING-RIGHT: 5.4pt; BORDER-TOP: medium none; PADDING-LEFT: 5.4pt; BACKGROUND: #dfdfdf; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: black 1pt solid" valign="Middle" width="95">
<p style="MARGIN: 3pt 0in"><b><font size="2">Determination Date for Capacity Goal</font></b></p>
</td>

<td style="BORDER-RIGHT: black 1pt solid; PADDING-RIGHT: 5.4pt; BORDER-TOP: medium none; PADDING-LEFT: 5.4pt; BACKGROUND: #dfdfdf; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: black 1pt solid" valign="Middle" width="110">
<p style="MARGIN: 3pt 0in"><b><font size="2">Average Gross Margin</font></b></p>
</td>

<TD STYLE="border-right:black 1pt solid; padding-right:5.4pt; border-top:medium none; padding-left:5.4pt; background:#dfdfdf; padding-bottom:0in; border-left:medium none; padding-top:0in; border-bottom:black 1pt solid;" VALIGN="Middle" WIDTH="130">
<p style="MARGIN: 3pt 0in"><b><font size="2">Period to Measure Gross Margin Goal</font></b></p>
</td>
</tr>

<tr>
<td style="BORDER-RIGHT: black 1pt solid; PADDING-RIGHT: 5.4pt; BORDER-TOP: medium none; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; BORDER-LEFT: black 1pt solid; PADDING-TOP: 0in; BORDER-BOTTOM: black 1pt solid" width="130">
<p style="MARGIN: 3pt 0in; TEXT-ALIGN: center" align="center"><font size="2">200%</font></p>

<p style="MARGIN: 3pt 0in; TEXT-ALIGN: center" align="center"><font size="2">(maximum)</font></p>
</td>

<td style="BORDER-RIGHT: black 1pt solid; PADDING-RIGHT: 5.4pt; BORDER-TOP: medium none; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: black 1pt solid" width="126">
<p style="MARGIN: 3pt 0in; TEXT-ALIGN: center" align="center"><font size="2">300 MW</font></p>
</td>

<td style="BORDER-RIGHT: black 1pt solid; PADDING-RIGHT: 5.4pt; BORDER-TOP: medium none; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: black 1pt solid">
<p style="MARGIN: 3pt 0in; TEXT-ALIGN: center" align="center"><font size="2">12/31/2009</font></p>
</td>

<td style="BORDER-RIGHT: black 1pt solid; PADDING-RIGHT: 5.4pt; BORDER-TOP: medium none; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: black 1pt solid" width="130">
<p style="MARGIN: 3pt 0in; TEXT-ALIGN: center" align="center"><font size="2">40% or higher (with reductions if at least 30% but below 40%)<sup>2</sup></font></p>
</td>

<td style="BORDER-RIGHT: black 1pt solid; PADDING-RIGHT: 5.4pt; BORDER-TOP: medium none; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: black 1pt solid" width="130">
<p style="MARGIN: 3pt 0in; TEXT-ALIGN: center" align="center"><font size="2">Average of third and fourth quarters of the Company&rsquo;s 2010 fiscal year</font></p>
</td>
</tr>

<tr>
<td style="BORDER-RIGHT: black 1pt solid; PADDING-RIGHT: 5.4pt; BORDER-TOP: medium none; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; BORDER-LEFT: black 1pt solid; PADDING-TOP: 0in; BORDER-BOTTOM: black 1pt solid" width="130">
<p style="MARGIN: 3pt 0in; TEXT-ALIGN: center" align="center"><font size="2">150%</font></p>
</td>

<td style="BORDER-RIGHT: black 1pt solid; PADDING-RIGHT: 5.4pt; BORDER-TOP: medium none; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: black 1pt solid" width="126">
<p style="MARGIN: 3pt 0in; TEXT-ALIGN: center" align="center"><font size="2">300 MW</font></p>
</td>

<td style="BORDER-RIGHT: black 1pt solid; PADDING-RIGHT: 5.4pt; BORDER-TOP: medium none; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: black 1pt solid">
<p style="MARGIN: 3pt 0in; TEXT-ALIGN: center" align="center"><font size="2">3/31/2010</font></p>
</td>

<td style="BORDER-RIGHT: black 1pt solid; PADDING-RIGHT: 5.4pt; BORDER-TOP: medium none; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: black 1pt solid" width="130">
<p style="MARGIN: 3pt 0in; TEXT-ALIGN: center" align="center"><font size="2">40% or higher (with reductions if at least 30% but below 40%)<sup>2</sup></font></p>
</td>

<td style="BORDER-RIGHT: black 1pt solid; PADDING-RIGHT: 5.4pt; BORDER-TOP: medium none; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: black 1pt solid" width="130">
<p style="MARGIN: 3pt 0in; TEXT-ALIGN: center" align="center"><font size="2">Fourth quarter of the Company&rsquo;s 2010 fiscal year</font></p>
</td>
</tr>

<tr>
<td style="BORDER-RIGHT: black 1pt solid; PADDING-RIGHT: 5.4pt; BORDER-TOP: medium none; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; BORDER-LEFT: black 1pt solid; PADDING-TOP: 0in; BORDER-BOTTOM: black 1pt solid" width="130">
<p style="MARGIN: 3pt 0in; TEXT-ALIGN: center" align="center"><font size="2">100%</font></p>

<p style="MARGIN: 3pt 0in; TEXT-ALIGN: center" align="center">&nbsp;</p>
</td>

<td style="BORDER-RIGHT: black 1pt solid; PADDING-RIGHT: 5.4pt; BORDER-TOP: medium none; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: black 1pt solid" width="126">
<p style="MARGIN: 3pt 0in; TEXT-ALIGN: center" align="center"><font size="2">300 MW</font></p>
</td>

<td style="BORDER-RIGHT: black 1pt solid; PADDING-RIGHT: 5.4pt; BORDER-TOP: medium none; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: black 1pt solid">
<p style="MARGIN: 3pt 0in; TEXT-ALIGN: center" align="center"><font size="2">6/30/2010</font></p>
</td>

<td style="BORDER-RIGHT: black 1pt solid; PADDING-RIGHT: 5.4pt; BORDER-TOP: medium none; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: black 1pt solid" width="130">
<p style="MARGIN: 3pt 0in; TEXT-ALIGN: center" align="center"><font size="2">40% or higher (with reductions if at least 30% but below 40%)<sup>2</sup></font></p>
</td>

<td style="BORDER-RIGHT: black 1pt solid; PADDING-RIGHT: 5.4pt; BORDER-TOP: medium none; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: black 1pt solid" width="130">
<p style="MARGIN: 3pt 0in; TEXT-ALIGN: center" align="center"><font size="2">Fourth quarter of the Company&rsquo;s 2010 fiscal year</font></p>
</td>
</tr>

<tr>
<td style="BORDER-RIGHT: black 1pt solid; PADDING-RIGHT: 5.4pt; BORDER-TOP: medium none; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; BORDER-LEFT: black 1pt solid; PADDING-TOP: 0in; BORDER-BOTTOM: black 1pt solid" width="130">
<p style="MARGIN: 3pt 0in; TEXT-ALIGN: center" align="center"><font size="2">75%</font></p>
</td>

<td style="BORDER-RIGHT: black 1pt solid; PADDING-RIGHT: 5.4pt; BORDER-TOP: medium none; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: black 1pt solid" width="126">
<p style="MARGIN: 3pt 0in; TEXT-ALIGN: center" align="center"><font size="2">270 MW</font></p>
</td>

<td style="BORDER-RIGHT: black 1pt solid; PADDING-RIGHT: 5.4pt; BORDER-TOP: medium none; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: black 1pt solid">
<p style="MARGIN: 3pt 0in; TEXT-ALIGN: center" align="center"><font size="2">6/30/2010</font></p>
</td>

<td style="BORDER-RIGHT: black 1pt solid; PADDING-RIGHT: 5.4pt; BORDER-TOP: medium none; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: black 1pt solid" width="130">
<p style="MARGIN: 3pt 0in; TEXT-ALIGN: center" align="center"><font size="2">30% or higher</font></p>
</td>

<td style="BORDER-RIGHT: black 1pt solid; PADDING-RIGHT: 5.4pt; BORDER-TOP: medium none; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: black 1pt solid" width="130">
<p style="MARGIN: 3pt 0in; TEXT-ALIGN: center" align="center"><font size="2">Fourth quarter of the Company&rsquo;s 2010 fiscal year</font></p>
</td>
</tr>

<tr>
<td style="BORDER-RIGHT: black 1pt solid; PADDING-RIGHT: 5.4pt; BORDER-TOP: medium none; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; BORDER-LEFT: black 1pt solid; PADDING-TOP: 0in; BORDER-BOTTOM: black 1pt solid" width="130">
<p style="MARGIN: 3pt 0in; TEXT-ALIGN: center" align="center"><font size="2">50%</font></p>

<p style="MARGIN: 3pt 0in; TEXT-ALIGN: center" align="center"><font size="2">(threshold)</font></p>
</td>

<td style="BORDER-RIGHT: black 1pt solid; PADDING-RIGHT: 5.4pt; BORDER-TOP: medium none; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: black 1pt solid" width="126">
<p style="MARGIN: 3pt 0in; TEXT-ALIGN: center" align="center"><font size="2">240 MW</font></p>
</td>

<td style="BORDER-RIGHT: black 1pt solid; PADDING-RIGHT: 5.4pt; BORDER-TOP: medium none; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: black 1pt solid">
<p style="MARGIN: 3pt 0in; TEXT-ALIGN: center" align="center"><font size="2">6/30/2010</font></p>
</td>

<td style="BORDER-RIGHT: black 1pt solid; PADDING-RIGHT: 5.4pt; BORDER-TOP: medium none; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: black 1pt solid" width="130">
<p style="MARGIN: 3pt 0in; TEXT-ALIGN: center" align="center"><font size="2">30% or higher</font></p>
</td>

<td style="BORDER-RIGHT: black 1pt solid; PADDING-RIGHT: 5.4pt; BORDER-TOP: medium none; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: black 1pt solid" width="130">
<p style="MARGIN: 3pt 0in; TEXT-ALIGN: center" align="center"><font size="2">Fourth quarter of the Company&rsquo;s 2010 fiscal year</font></p>
</td>
</tr>

<tr>
<td style="BORDER-RIGHT: black 1pt solid; PADDING-RIGHT: 5.4pt; BORDER-TOP: medium none; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; BORDER-LEFT: black 1pt solid; PADDING-TOP: 0in; BORDER-BOTTOM: black 1pt solid" width="130">
<p style="MARGIN: 3pt 0in; TEXT-ALIGN: center" align="center"><font size="2">0%</font></p>
</td>

<td style="BORDER-RIGHT: black 1pt solid; PADDING-RIGHT: 5.4pt; BORDER-TOP: medium none; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: black 1pt solid" colspan="4">
<p style="MARGIN: 3pt 0in; TEXT-ALIGN: center" align="center"><font size="2">Less than 240 MW by 6/30/2010 or</font></p>

<p style="MARGIN: 3pt 0in; TEXT-ALIGN: center" align="center"><font size="2">average gross margin less than 30% in measurement period</font></p>
</td>
</tr>
</table>
</div>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"><font size="2"><sup>1</sup>Nameplate capacity is defined as when installed production equipment is turned over to production for launch and 500 KW have been produced, i.e., start of production ramp.</font></p>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"><font size="2"><sup>2</sup>If the average gross margin ratio is less than 40% but greater than 30%, then the award earned will be reduced by 2% of that payout level for each 1% that gross margin is less than 40%. See table on next page for the application of interpolation between performance levels.</font></p>
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<p style="PAGE-BREAK-BEFORE: always"></p>
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<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"><font size="2">Energy Conversion Devices, Inc.</font></p>

<div align="left">
<table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" border="0">
<tr>
<td valign="top" nowrap width="540">
<p><font size="2">Form of Performance Share Award Agreement</font></p>
</td>

<td valign="top" nowrap width="80">
<p align="right"><font size="2">Page</font> <font size="2">10 of 15</font></p>
</td>
</tr>
</table>
</div>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; BORDER-BOTTOM: black 2.25pt double; TEXT-ALIGN: left">&nbsp;</p>

<p style="MARGIN-TOP: 7pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"><font size="2">The following table shows the application of interpolation between performance levels:</font></p>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

<div align="center">
<table cellspacing="1" cellpadding="5" width="95%" align="center">
<tr style="HEIGHT: 11pt">
<td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; BACKGROUND: #dfdfdf; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 12.75pt" align="center">
<p style="MARGIN: 0.1in 0in 10pt; TEXT-ALIGN: center" align="center"><b><font size="2">Nameplate Capacity</font></b></p>
</td>

<td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; BACKGROUND: #dfdfdf; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 12.75pt" nowrap align="center" width="100">
<p style="MARGIN: 0.1in 0in 10pt; TEXT-ALIGN: center" align="center"><b><font size="2">Gross Margin %</font></b></p>
</td>

<td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; BACKGROUND: #dfdfdf; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 12.75pt" nowrap align="center" width="100">
<p style="MARGIN: 0.1in 0in 10pt; TEXT-ALIGN: center" align="center"><b><font size="2">Payout Level %</font></b></p>
</td>
</tr>

<tr style="HEIGHT: 11pt">
<td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0.1in; HEIGHT: 12.75pt" valign="top" align="right" rowspan="11">
<p style="MARGIN-BOTTOM: 0.5pt; TEXT-ALIGN: center" align="center"><font size="2">300 MW by 12/31/2009</font></p>
</td>

<td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0.1in; HEIGHT: 12.75pt" valign="bottom" nowrap align="center">
<p style="MARGIN-BOTTOM: 0.5pt; TEXT-ALIGN: center" align="center"><font size="2">40 or higher</font></p>
</td>

<td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0.1in; HEIGHT: 12.75pt" valign="bottom" nowrap align="center">
<p style="MARGIN-BOTTOM: 0.5pt; TEXT-ALIGN: center" align="center"><font size="2">200</font></p>
</td>
</tr>

<tr style="HEIGHT: 11pt">
<td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 12.75pt" valign="bottom" nowrap align="right">
<p style="MARGIN-BOTTOM: 0.5pt; TEXT-ALIGN: center" align="center"><font size="2">39</font></p>
</td>

<td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 12.75pt" valign="bottom" nowrap align="center">
<p style="MARGIN-BOTTOM: 0.5pt; TEXT-ALIGN: center" align="center"><font size="2">196</font></p>
</td>
</tr>

<tr style="HEIGHT: 11pt">
<td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 12.75pt" valign="bottom" nowrap align="right">
<p style="MARGIN-BOTTOM: 0.5pt; TEXT-ALIGN: center" align="center"><font size="2">38</font></p>
</td>

<td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 12.75pt" valign="bottom" nowrap align="center">
<p style="MARGIN-BOTTOM: 0.5pt; TEXT-ALIGN: center" align="center"><font size="2">192</font></p>
</td>
</tr>

<tr style="HEIGHT: 11pt">
<td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 12.75pt" valign="bottom" nowrap align="right">
<p style="MARGIN-BOTTOM: 0.5pt; TEXT-ALIGN: center" align="center"><font size="2">37</font></p>
</td>

<td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 12.75pt" valign="bottom" nowrap align="center">
<p style="MARGIN-BOTTOM: 0.5pt; TEXT-ALIGN: center" align="center"><font size="2">188</font></p>
</td>
</tr>

<tr style="HEIGHT: 11pt">
<td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 12.75pt" valign="bottom" nowrap align="right">
<p style="MARGIN-BOTTOM: 0.5pt; TEXT-ALIGN: center" align="center"><font size="2">36</font></p>
</td>

<td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 12.75pt" valign="bottom" nowrap align="center">
<p style="MARGIN-BOTTOM: 0.5pt; TEXT-ALIGN: center" align="center"><font size="2">184</font></p>
</td>
</tr>

<tr style="HEIGHT: 11pt">
<td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 12.75pt" valign="bottom" nowrap align="right">
<p style="MARGIN-BOTTOM: 0.5pt; TEXT-ALIGN: center" align="center"><font size="2">35</font></p>
</td>

<td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 12.75pt" valign="bottom" nowrap align="center">
<p style="MARGIN-BOTTOM: 0.5pt; TEXT-ALIGN: center" align="center"><font size="2">180</font></p>
</td>
</tr>

<tr style="HEIGHT: 11pt">
<td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 12.75pt" valign="bottom" nowrap align="right">
<p style="MARGIN-BOTTOM: 0.5pt; TEXT-ALIGN: center" align="center"><font size="2">34</font></p>
</td>

<td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 12.75pt" valign="bottom" nowrap align="center">
<p style="MARGIN-BOTTOM: 0.5pt; TEXT-ALIGN: center" align="center"><font size="2">176</font></p>
</td>
</tr>

<tr style="HEIGHT: 11pt">
<td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 12.75pt" valign="bottom" nowrap align="right">
<p style="MARGIN-BOTTOM: 0.5pt; TEXT-ALIGN: center" align="center"><font size="2">33</font></p>
</td>

<td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 12.75pt" valign="bottom" nowrap align="center">
<p style="MARGIN-BOTTOM: 0.5pt; TEXT-ALIGN: center" align="center"><font size="2">172</font></p>
</td>
</tr>

<tr style="HEIGHT: 11pt">
<td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 12.75pt" valign="bottom" nowrap align="right">
<p style="MARGIN-BOTTOM: 0.5pt; TEXT-ALIGN: center" align="center"><font size="2">32</font></p>
</td>

<td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 12.75pt" valign="bottom" nowrap align="center">
<p style="MARGIN-BOTTOM: 0.5pt; TEXT-ALIGN: center" align="center"><font size="2">168</font></p>
</td>
</tr>

<tr style="HEIGHT: 11pt">
<td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 12.75pt" valign="bottom" nowrap align="right">
<p style="MARGIN-BOTTOM: 0.5pt; TEXT-ALIGN: center" align="center"><font size="2">31</font></p>
</td>

<td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 12.75pt" valign="bottom" nowrap align="center">
<p style="MARGIN-BOTTOM: 0.5pt; TEXT-ALIGN: center" align="center"><font size="2">164</font></p>
</td>
</tr>

<tr style="HEIGHT: 11pt">
<td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 12.75pt" valign="bottom" nowrap align="right">
<p style="MARGIN-BOTTOM: 0.5pt; TEXT-ALIGN: center" align="center"><font size="2">30</font></p>
</td>

<td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 12.75pt" valign="bottom" nowrap align="center">
<p style="MARGIN-BOTTOM: 0.5pt; TEXT-ALIGN: center" align="center"><font size="2">160</font></p>
</td>
</tr>

<tr style="HEIGHT: 11pt">
<td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 12.75pt" valign="top" align="right">
<p style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center" align="center">&nbsp;</p>
</td>

<td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 12.75pt" valign="bottom" nowrap align="center">
<p style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center" align="center">&nbsp;</p>
</td>

<td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 12.75pt" valign="bottom" nowrap align="center">
<p style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center" align="center">&nbsp;</p>
</td>
</tr>

<tr style="HEIGHT: 11pt">
<td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 12.75pt" valign="top" align="right" rowspan="11">
<p style="MARGIN-BOTTOM: 0.5pt; TEXT-ALIGN: center" align="center"><font size="2">300 MW by 3/31/2010</font></p>
</td>

<td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 12.75pt" valign="bottom" nowrap align="center">
<p style="MARGIN-BOTTOM: 0.5pt; TEXT-ALIGN: center" align="center"><font size="2">40 or higher</font></p>
</td>

<td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 12.75pt" valign="bottom" nowrap align="center">
<p style="MARGIN-BOTTOM: 0.5pt; TEXT-ALIGN: center" align="center"><font size="2">150</font></p>
</td>
</tr>

<tr style="HEIGHT: 11pt">
<td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 12.75pt" valign="bottom" nowrap align="right">
<p style="MARGIN-BOTTOM: 0.5pt; TEXT-ALIGN: center" align="center"><font size="2">39</font></p>
</td>

<td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 12.75pt" valign="bottom" nowrap align="center">
<p style="MARGIN-BOTTOM: 0.5pt; TEXT-ALIGN: center" align="center"><font size="2">147</font></p>
</td>
</tr>

<tr style="HEIGHT: 11pt">
<td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 12.75pt" valign="bottom" nowrap align="right">
<p style="MARGIN-BOTTOM: 0.5pt; TEXT-ALIGN: center" align="center"><font size="2">38</font></p>
</td>

<td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 12.75pt" valign="bottom" nowrap align="center">
<p style="MARGIN-BOTTOM: 0.5pt; TEXT-ALIGN: center" align="center"><font size="2">144</font></p>
</td>
</tr>

<tr style="HEIGHT: 11pt">
<td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 12.75pt" valign="bottom" nowrap align="right">
<p style="MARGIN-BOTTOM: 0.5pt; TEXT-ALIGN: center" align="center"><font size="2">37</font></p>
</td>

<td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 12.75pt" valign="bottom" nowrap align="center">
<p style="MARGIN-BOTTOM: 0.5pt; TEXT-ALIGN: center" align="center"><font size="2">141</font></p>
</td>
</tr>

<tr style="HEIGHT: 11pt">
<td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 12.75pt" valign="bottom" nowrap align="right">
<p style="MARGIN-BOTTOM: 0.5pt; TEXT-ALIGN: center" align="center"><font size="2">36</font></p>
</td>

<td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 12.75pt" valign="bottom" nowrap align="center">
<p style="MARGIN-BOTTOM: 0.5pt; TEXT-ALIGN: center" align="center"><font size="2">138</font></p>
</td>
</tr>

<tr style="HEIGHT: 11pt">
<td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 12.75pt" valign="bottom" nowrap align="right">
<p style="MARGIN-BOTTOM: 0.5pt; TEXT-ALIGN: center" align="center"><font size="2">35</font></p>
</td>

<td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 12.75pt" valign="bottom" nowrap align="center">
<p style="MARGIN-BOTTOM: 0.5pt; TEXT-ALIGN: center" align="center"><font size="2">135</font></p>
</td>
</tr>

<tr style="HEIGHT: 11pt">
<td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 12.75pt" valign="bottom" nowrap align="right">
<p style="MARGIN-BOTTOM: 0.5pt; TEXT-ALIGN: center" align="center"><font size="2">34</font></p>
</td>

<td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 12.75pt" valign="bottom" nowrap align="center">
<p style="MARGIN-BOTTOM: 0.5pt; TEXT-ALIGN: center" align="center"><font size="2">132</font></p>
</td>
</tr>

<tr style="HEIGHT: 11pt">
<td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 12.75pt" valign="bottom" nowrap align="right">
<p style="MARGIN-BOTTOM: 0.5pt; TEXT-ALIGN: center" align="center"><font size="2">33</font></p>
</td>

<td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 12.75pt" valign="bottom" nowrap align="center">
<p style="MARGIN-BOTTOM: 0.5pt; TEXT-ALIGN: center" align="center"><font size="2">129</font></p>
</td>
</tr>

<tr style="HEIGHT: 11pt">
<td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 12.75pt" valign="bottom" nowrap align="right">
<p style="MARGIN-BOTTOM: 0.5pt; TEXT-ALIGN: center" align="center"><font size="2">32</font></p>
</td>

<td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 12.75pt" valign="bottom" nowrap align="center">
<p style="MARGIN-BOTTOM: 0.5pt; TEXT-ALIGN: center" align="center"><font size="2">126</font></p>
</td>
</tr>

<tr style="HEIGHT: 11pt">
<td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 12.75pt" valign="bottom" nowrap align="right">
<p style="MARGIN-BOTTOM: 0.5pt; TEXT-ALIGN: center" align="center"><font size="2">31</font></p>
</td>

<td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 12.75pt" valign="bottom" nowrap align="center">
<p style="MARGIN-BOTTOM: 0.5pt; TEXT-ALIGN: center" align="center"><font size="2">123</font></p>
</td>
</tr>

<tr style="HEIGHT: 11pt">
<td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 12.75pt" valign="bottom" nowrap align="right">
<p style="MARGIN-BOTTOM: 0.5pt; TEXT-ALIGN: center" align="center"><font size="2">30</font></p>
</td>

<td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 12.75pt" valign="bottom" nowrap align="center">
<p style="MARGIN-BOTTOM: 0.5pt; TEXT-ALIGN: center" align="center"><font size="2">120</font></p>
</td>
</tr>

<tr style="HEIGHT: 11pt">
<td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 12.75pt" valign="top" align="right">
<p style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center" align="center">&nbsp;</p>
</td>

<td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 12.75pt" valign="bottom" nowrap align="center">
<p style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center" align="center">&nbsp;</p>
</td>

<td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 12.75pt" valign="bottom" nowrap align="center">
<p style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center" align="center">&nbsp;</p>
</td>
</tr>

<tr style="HEIGHT: 11pt">
<td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 12.75pt" valign="top" align="right" rowspan="11">
<p style="MARGIN-BOTTOM: 0.5pt; TEXT-ALIGN: center" align="center"><font size="2">300 MW by 6/30/2010</font></p>
</td>

<td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 12.75pt" valign="bottom" nowrap align="center">
<p style="MARGIN-BOTTOM: 0.5pt; TEXT-ALIGN: center" align="center"><font size="2">40 or higher</font></p>
</td>

<td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 12.75pt" valign="bottom" nowrap align="center">
<p style="MARGIN-BOTTOM: 0.5pt; TEXT-ALIGN: center" align="center"><font size="2">100</font></p>
</td>
</tr>

<tr style="HEIGHT: 11pt">
<td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 12.75pt" valign="bottom" nowrap align="right">
<p style="MARGIN-BOTTOM: 0.5pt; TEXT-ALIGN: center" align="center"><font size="2">39</font></p>
</td>

<td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 12.75pt" valign="bottom" nowrap align="center">
<p style="MARGIN-BOTTOM: 0.5pt; TEXT-ALIGN: center" align="center"><font size="2">98</font></p>
</td>
</tr>

<tr style="HEIGHT: 11pt">
<td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 12.75pt" valign="bottom" nowrap align="right">
<p style="MARGIN-BOTTOM: 0.5pt; TEXT-ALIGN: center" align="center"><font size="2">38</font></p>
</td>

<td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 12.75pt" valign="bottom" nowrap align="center">
<p style="MARGIN-BOTTOM: 0.5pt; TEXT-ALIGN: center" align="center"><font size="2">96</font></p>
</td>
</tr>

<tr style="HEIGHT: 11pt">
<td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 12.75pt" valign="bottom" nowrap align="right">
<p style="MARGIN-BOTTOM: 0.5pt; TEXT-ALIGN: center" align="center"><font size="2">37</font></p>
</td>

<td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 12.75pt" valign="bottom" nowrap align="center">
<p style="MARGIN-BOTTOM: 0.5pt; TEXT-ALIGN: center" align="center"><font size="2">94</font></p>
</td>
</tr>

<tr style="HEIGHT: 11pt">
<td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 12.75pt" valign="bottom" nowrap align="right">
<p style="MARGIN-BOTTOM: 0.5pt; TEXT-ALIGN: center" align="center"><font size="2">36</font></p>
</td>

<td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 12.75pt" valign="bottom" nowrap align="center">
<p style="MARGIN-BOTTOM: 0.5pt; TEXT-ALIGN: center" align="center"><font size="2">92</font></p>
</td>
</tr>

<tr style="HEIGHT: 11pt">
<td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 12.75pt" valign="bottom" nowrap align="right">
<p style="MARGIN-BOTTOM: 0.5pt; TEXT-ALIGN: center" align="center"><font size="2">35</font></p>
</td>

<td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 12.75pt" valign="bottom" nowrap align="center">
<p style="MARGIN-BOTTOM: 0.5pt; TEXT-ALIGN: center" align="center"><font size="2">90</font></p>
</td>
</tr>

<tr style="HEIGHT: 11pt">
<td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 12.75pt" valign="bottom" nowrap align="right">
<p style="MARGIN-BOTTOM: 0.5pt; TEXT-ALIGN: center" align="center"><font size="2">34</font></p>
</td>

<td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 12.75pt" valign="bottom" nowrap align="center">
<p style="MARGIN-BOTTOM: 0.5pt; TEXT-ALIGN: center" align="center"><font size="2">88</font></p>
</td>
</tr>

<tr style="HEIGHT: 11pt">
<td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 12.75pt" valign="bottom" nowrap align="right">
<p style="MARGIN-BOTTOM: 0.5pt; TEXT-ALIGN: center" align="center"><font size="2">33</font></p>
</td>

<td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 12.75pt" valign="bottom" nowrap align="center">
<p style="MARGIN-BOTTOM: 0.5pt; TEXT-ALIGN: center" align="center"><font size="2">86</font></p>
</td>
</tr>

<tr style="HEIGHT: 11pt">
<td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 12.75pt" valign="bottom" nowrap align="right">
<p style="MARGIN-BOTTOM: 0.5pt; TEXT-ALIGN: center" align="center"><font size="2">32</font></p>
</td>

<td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 12.75pt" valign="bottom" nowrap align="center">
<p style="MARGIN-BOTTOM: 0.5pt; TEXT-ALIGN: center" align="center"><font size="2">84</font></p>
</td>
</tr>

<tr style="HEIGHT: 11pt">
<td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 12.75pt" valign="bottom" nowrap align="right">
<p style="MARGIN-BOTTOM: 0.5pt; TEXT-ALIGN: center" align="center"><font size="2">31</font></p>
</td>

<td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 12.75pt" valign="bottom" nowrap align="center">
<p style="MARGIN-BOTTOM: 0.5pt; TEXT-ALIGN: center" align="center"><font size="2">82</font></p>
</td>
</tr>

<tr style="HEIGHT: 11pt">
<td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 12.75pt" valign="bottom" nowrap align="right">
<p style="MARGIN-BOTTOM: 0.5pt; TEXT-ALIGN: center" align="center"><font size="2">30</font></p>
</td>

<td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 12.75pt" valign="bottom" nowrap align="center">
<p style="MARGIN-BOTTOM: 0.5pt; TEXT-ALIGN: center" align="center"><font size="2">80</font></p>
</td>
</tr>

<tr style="HEIGHT: 11pt">
<td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 12.75pt" valign="top" align="right">
<p style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center" align="center">&nbsp;</p>
</td>

<td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 12.75pt" valign="bottom" nowrap align="center">
<p style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center" align="center">&nbsp;</p>
</td>

<td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 12.75pt" valign="bottom" nowrap align="center">
<p style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center" align="center">&nbsp;</p>
</td>
</tr>

<tr style="HEIGHT: 11pt">
<td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 12.75pt" valign="top" align="right">
<p style="MARGIN-BOTTOM: 0.5pt; TEXT-ALIGN: center" align="center"><font size="2">270 MW by 6/30/2010</font></p>
</td>

<td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 12.75pt" valign="bottom" nowrap align="center">
<p style="MARGIN-BOTTOM: 0.5pt; TEXT-ALIGN: center" align="center"><font size="2">30 or higher</font></p>
</td>

<td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 12.75pt" valign="bottom" nowrap align="center">
<p style="MARGIN-BOTTOM: 0.5pt; TEXT-ALIGN: center" align="center"><font size="2">75</font></p>
</td>
</tr>

<tr style="HEIGHT: 11pt">
<td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 12.75pt" valign="top" align="right">
<p style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center" align="center">&nbsp;</p>
</td>

<td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 12.75pt" valign="bottom" nowrap align="center">
<p style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center" align="center">&nbsp;</p>
</td>

<td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 12.75pt" valign="bottom" nowrap align="center">
<p style="MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center" align="center">&nbsp;</p>
</td>
</tr>

<tr style="HEIGHT: 11pt">
<td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 12.75pt" valign="top" align="right">
<p style="MARGIN-BOTTOM: 0.5pt; TEXT-ALIGN: center" align="center"><font size="2">240 MW by 6/30/2010</font></p>
</td>

<td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 12.75pt" valign="bottom" nowrap align="center">
<p style="MARGIN-BOTTOM: 0.5pt; TEXT-ALIGN: center" align="center"><font size="2">30 or higher</font></p>
</td>

<td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 12.75pt" valign="bottom" nowrap align="center">
<p style="MARGIN-BOTTOM: 0.5pt; TEXT-ALIGN: center" align="center"><font size="2">50</font></p>
</td>
</tr>
</table>
</div>

<p style="MARGIN-TOP: 7pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

<div align="left">
<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"><font size="2">If the nameplate capacity is less than 240 MW by June 30, 2010, or the average gross margin is less than 30% during the measurement period, the payout level is 0%.</font></p>
</div>
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<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"><font size="2">Energy Conversion Devices, Inc.</font></p>

<div align="left">
<table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" border="0">
<tr>
<td valign="top" nowrap width="540">
<p><font size="2">Form of Performance Share Award Agreement</font></p>
</td>

<td valign="top" nowrap width="80">
<p align="right"><font size="2">Page</font> <font size="2">11 of 15</font></p>
</td>
</tr>
</table>
</div>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; BORDER-BOTTOM: black 2.25pt double; TEXT-ALIGN: left">&nbsp;</p>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center">&nbsp;</p>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 6pt; TEXT-ALIGN: center"><b><font size="2">EXHIBIT B [for the FY09-12 performance cycle]</font></b></p>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; TEXT-ALIGN: center"><b><font size="2">Performance Targets</font></b></p>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center"><small>PERFORMANCE</small> <small>SHARE</small> <small>AWARD</small> <small>AGREEMENT</small></p>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center"><small>UNDER</small> <small>THE</small> <small>ENERGY</small> <small>CONVERSION</small> <small>DEVICES,</small> <small>INC.</small></p>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center">2006 <small>STOCK</small> <small>INCENTIVE</small> <small>PLAN</small></p>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"><font size="2">Performance Shares are earned and shall vest, as described in this Exhibit, based on the Company&rsquo;s nameplate capacity and gross margin. Nameplate capacity refers to the nameplate capacity of the Company as of June 30, 2012, and gross margin refers to the gross margin of the Company for the fourth quarter of the 2012 fiscal year. For this purpose, &ldquo;nameplate capacity&rdquo; is defined as when
installed production equipment is turned over to production for launch and 500 KW have been produced, i.e., start of production ramp.</font></p>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"><b><font size="2">A.&nbsp;&nbsp;&nbsp;Nameplate Capacity At Least 1 GW and Gross Margin At Least 40%</font></b></p>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"><font size="2">If the Company&rsquo;s nameplate capacity is at least 1 GW and the gross margin is at least 40% (as of the dates specified above), the Performance Shares vest as follows:</font></p>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

<div align="center">
<TABLE STYLE="BORDER-COLLAPSE: collapse" CELLSPACING="0" CELLPADDING="0" WIDTH="100%">
<tr>
<TD STYLE="BORDER-RIGHT: black 1pt solid; PADDING-RIGHT: 5.4pt; BORDER-TOP: black 1pt solid; PADDING-LEFT: 5.4pt; BACKGROUND: #dfdfdf; PADDING-BOTTOM: 0in; BORDER-LEFT: black 1pt solid; PADDING-TOP: .10in; BORDER-BOTTOM: black 1pt solid" WIDTH="316" VALIGN="MIDDLE">
<p style="MARGIN: 3pt 0in; TEXT-ALIGN: center" align="center"><b><font size="2">Payout Level<BR>(% of target Performance Shares earned)</font></b></p>
</td>

<TD STYLE="BORDER-RIGHT: black 1pt solid; PADDING-RIGHT: 5.4pt; BORDER-TOP: black 1pt solid; PADDING-LEFT: 5.4pt; BACKGROUND: #dfdfdf; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: .10in; BORDER-BOTTOM: black 1pt solid" WIDTH="332" VALIGN="MIDDLE">
<p style="MARGIN-BOTTOM: 0.5pt; TEXT-ALIGN: center" align="center"><b><font size="2">Gross Margin %</font></b></p>
</td>
</tr>

<tr>
<TD STYLE="BORDER-RIGHT: black 1pt solid; PADDING-RIGHT: 5.4pt; BORDER-TOP: medium none; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; BORDER-LEFT: black 1pt solid; PADDING-TOP: .10in; BORDER-BOTTOM: black 1pt solid" VALIGN="MIDDLE">
<p style="MARGIN-BOTTOM: 0.5pt; TEXT-ALIGN: center" align="center"><font size="2">200</font></p>
</td>

<TD STYLE="BORDER-RIGHT: black 1pt solid; PADDING-RIGHT: 5.4pt; BORDER-TOP: medium none; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: .10in; BORDER-BOTTOM: black 1pt solid" VALIGN="MIDDLE">
<p style="MARGIN-BOTTOM: 0.5pt; TEXT-ALIGN: center" align="center"><font size="2">50 or greater</font></p>
</td>
</tr>

<tr>
<TD STYLE="BORDER-RIGHT: black 1pt solid; PADDING-RIGHT: 5.4pt; BORDER-TOP: medium none; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; BORDER-LEFT: black 1pt solid; PADDING-TOP: .10in; BORDER-BOTTOM: black 1pt solid" VALIGN="MIDDLE">
<p style="MARGIN-BOTTOM: 0.5pt; TEXT-ALIGN: center" align="center"><font size="2">190</font></p>
</td>

<TD STYLE="BORDER-RIGHT: black 1pt solid; PADDING-RIGHT: 5.4pt; BORDER-TOP: medium none; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: .10in; BORDER-BOTTOM: black 1pt solid" VALIGN="MIDDLE">
<p style="MARGIN-BOTTOM: 0.5pt; TEXT-ALIGN: center" align="center"><font size="2">49</font></p>
</td>
</tr>

<tr>
<TD STYLE="BORDER-RIGHT: black 1pt solid; PADDING-RIGHT: 5.4pt; BORDER-TOP: medium none; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; BORDER-LEFT: black 1pt solid; PADDING-TOP: .10in; BORDER-BOTTOM: black 1pt solid" VALIGN="MIDDLE">
<p style="MARGIN-BOTTOM: 0.5pt; TEXT-ALIGN: center" align="center"><font size="2">180</font></p>
</td>

<TD STYLE="BORDER-RIGHT: black 1pt solid; PADDING-RIGHT: 5.4pt; BORDER-TOP: medium none; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: .10in; BORDER-BOTTOM: black 1pt solid" VALIGN="MIDDLE">
<p style="MARGIN-BOTTOM: 0.5pt; TEXT-ALIGN: center" align="center"><font size="2">48</font></p>
</td>
</tr>

<tr>
<TD STYLE="BORDER-RIGHT: black 1pt solid; PADDING-RIGHT: 5.4pt; BORDER-TOP: medium none; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; BORDER-LEFT: black 1pt solid; PADDING-TOP: .10in; BORDER-BOTTOM: black 1pt solid" VALIGN="MIDDLE">
<p style="MARGIN-BOTTOM: 0.5pt; TEXT-ALIGN: center" align="center"><font size="2">170</font></p>
</td>

<TD STYLE="BORDER-RIGHT: black 1pt solid; PADDING-RIGHT: 5.4pt; BORDER-TOP: medium none; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: .10in; BORDER-BOTTOM: black 1pt solid" VALIGN="MIDDLE">
<p style="MARGIN-BOTTOM: 0.5pt; TEXT-ALIGN: center" align="center"><font size="2">47</font></p>
</td>
</tr>

<tr>
<TD STYLE="BORDER-RIGHT: black 1pt solid; PADDING-RIGHT: 5.4pt; BORDER-TOP: medium none; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; BORDER-LEFT: black 1pt solid; PADDING-TOP: .10in; BORDER-BOTTOM: black 1pt solid" VALIGN="MIDDLE">
<p style="MARGIN-BOTTOM: 0.5pt; TEXT-ALIGN: center" align="center"><font size="2">160</font></p>
</td>

<TD STYLE="BORDER-RIGHT: black 1pt solid; PADDING-RIGHT: 5.4pt; BORDER-TOP: medium none; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: .10in; BORDER-BOTTOM: black 1pt solid" VALIGN="MIDDLE">
<p style="MARGIN-BOTTOM: 0.5pt; TEXT-ALIGN: center" align="center"><font size="2">46</font></p>
</td>
</tr>

<tr>
<TD STYLE="BORDER-RIGHT: black 1pt solid; PADDING-RIGHT: 5.4pt; BORDER-TOP: medium none; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; BORDER-LEFT: black 1pt solid; PADDING-TOP: .10in; BORDER-BOTTOM: black 1pt solid" VALIGN="MIDDLE">
<p style="MARGIN-BOTTOM: 0.5pt; TEXT-ALIGN: center" align="center"><font size="2">150</font></p>
</td>

<TD STYLE="BORDER-RIGHT: black 1pt solid; PADDING-RIGHT: 5.4pt; BORDER-TOP: medium none; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: .10in; BORDER-BOTTOM: black 1pt solid" VALIGN="MIDDLE">
<p style="MARGIN-BOTTOM: 0.5pt; TEXT-ALIGN: center" align="center"><font size="2">45</font></p>
</td>
</tr>

<tr>
<TD STYLE="BORDER-RIGHT: black 1pt solid; PADDING-RIGHT: 5.4pt; BORDER-TOP: medium none; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; BORDER-LEFT: black 1pt solid; PADDING-TOP: .10in; BORDER-BOTTOM: black 1pt solid" VALIGN="MIDDLE">
<p style="MARGIN-BOTTOM: 0.5pt; TEXT-ALIGN: center" align="center"><font size="2">140</font></p>
</td>

<TD STYLE="BORDER-RIGHT: black 1pt solid; PADDING-RIGHT: 5.4pt; BORDER-TOP: medium none; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: .10in; BORDER-BOTTOM: black 1pt solid" VALIGN="MIDDLE">
<p style="MARGIN-BOTTOM: 0.5pt; TEXT-ALIGN: center" align="center"><font size="2">44</font></p>
</td>
</tr>

<tr>
<TD STYLE="BORDER-RIGHT: black 1pt solid; PADDING-RIGHT: 5.4pt; BORDER-TOP: medium none; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; BORDER-LEFT: black 1pt solid; PADDING-TOP: .10in; BORDER-BOTTOM: black 1pt solid" VALIGN="MIDDLE">
<p style="MARGIN-BOTTOM: 0.5pt; TEXT-ALIGN: center" align="center"><font size="2">130</font></p>
</td>

<TD STYLE="BORDER-RIGHT: black 1pt solid; PADDING-RIGHT: 5.4pt; BORDER-TOP: medium none; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: .10in; BORDER-BOTTOM: black 1pt solid" VALIGN="MIDDLE">
<p style="MARGIN-BOTTOM: 0.5pt; TEXT-ALIGN: center" align="center"><font size="2">43</font></p>
</td>
</tr>

<tr>
<TD STYLE="BORDER-RIGHT: black 1pt solid; PADDING-RIGHT: 5.4pt; BORDER-TOP: medium none; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; BORDER-LEFT: black 1pt solid; PADDING-TOP: .10in; BORDER-BOTTOM: black 1pt solid" VALIGN="MIDDLE">
<p style="MARGIN-BOTTOM: 0.5pt; TEXT-ALIGN: center" align="center"><font size="2">120</font></p>
</td>

<TD STYLE="BORDER-RIGHT: black 1pt solid; PADDING-RIGHT: 5.4pt; BORDER-TOP: medium none; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: .10in; BORDER-BOTTOM: black 1pt solid" VALIGN="MIDDLE">
<p style="MARGIN-BOTTOM: 0.5pt; TEXT-ALIGN: center" align="center"><font size="2">42</font></p>
</td>
</tr>

<tr>
<TD STYLE="BORDER-RIGHT: black 1pt solid; PADDING-RIGHT: 5.4pt; BORDER-TOP: medium none; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; BORDER-LEFT: black 1pt solid; PADDING-TOP: .10in; BORDER-BOTTOM: black 1pt solid" VALIGN="MIDDLE">
<p style="MARGIN-BOTTOM: 0.5pt; TEXT-ALIGN: center" align="center"><font size="2">110</font></p>
</td>

<TD STYLE="BORDER-RIGHT: black 1pt solid; PADDING-RIGHT: 5.4pt; BORDER-TOP: medium none; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: .10in; BORDER-BOTTOM: black 1pt solid" VALIGN="MIDDLE">
<p style="MARGIN-BOTTOM: 0.5pt; TEXT-ALIGN: center" align="center"><font size="2">41</font></p>
</td>
</tr>

<tr>
<TD STYLE="BORDER-RIGHT: black 1pt solid; PADDING-RIGHT: 5.4pt; BORDER-TOP: medium none; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; BORDER-LEFT: black 1pt solid; PADDING-TOP: .10in; BORDER-BOTTOM: black 1pt solid" VALIGN="MIDDLE">
<p style="MARGIN-BOTTOM: 0.5pt; TEXT-ALIGN: center" align="center"><font size="2">100</font></p>
</td>

<TD STYLE="BORDER-RIGHT: black 1pt solid; PADDING-RIGHT: 5.4pt; BORDER-TOP: medium none; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: .10in; BORDER-BOTTOM: black 1pt solid" VALIGN="MIDDLE">
<p style="MARGIN-BOTTOM: 0.5pt; TEXT-ALIGN: center" align="center"><font size="2">40</font></p>
</td>
</tr>
</table>
</div>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>
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<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"><font size="2">Energy Conversion Devices, Inc.</font></p>

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<p><font size="2">Form of Performance Share Award Agreement</font></p>
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<p align="right"><font size="2">Page</font> <font size="2">12 of 15</font></p>
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<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center">&nbsp;</p>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"><b><font size="2">B.&nbsp;&nbsp;&nbsp;Nameplate Capacity Less Than 1 GW or Gross Margin Less than 40% (provided Nameplate Capacity at least 800 MW and Gross Margin at least 30%)</font></b></p>

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<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"><font size="2">If the Company&rsquo;s nameplate capacity is less than 1 GW</font> <i><b><font size="2">or</font></b></i> <font size="2">the gross margin is less than 40% (as of the dates specified above), the target number of Performance Shares is split equally between goals for capacity and gross margin. Vesting occurs according to the payout levels shown below. The number of shares that vest based on the nameplate
capacity goal is added to the number of shares that vest based on the gross margin goal to arrive at the grand total of vested Performance Shares. However, this Section B does not apply if either Nameplate Capacity is less than 800 MW</font> <i><b><font size="2">or</font></b></i> <font size="2">Gross Margin is less than 30%; see Section C below.</font></p>

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<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

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<p style="MARGIN: 0.1in 0in 0.5pt; TEXT-ALIGN: center" align="center"><b><font size="2">Nameplate Capacity</font></b></p>
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<p style="MARGIN: 0.1in 0in 0.5pt; TEXT-ALIGN: center" align="center">&nbsp;</p>
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<p style="MARGIN: 0.1in 0in 0.5pt; TEXT-ALIGN: center" align="center"><b><font size="2">Gross Margin</font></b></p>
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<p style="MARGIN: 0.1in 0in; TEXT-ALIGN: center" align="center"><b><font size="2">Payout Level<BR>(% of nameplate capacity Performance Shares earned)</font></b></p>

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<p style="MARGIN: 0.1in 0in 0.5pt; TEXT-ALIGN: center" align="center"><b><font size="2">Nameplate Capacity</font></b></p>
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<p style="MARGIN: 0.1in 0in 0.5pt; TEXT-ALIGN: center" align="center">&nbsp;</p>
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<p style="MARGIN: 0.1in 0in; TEXT-ALIGN: center" align="center"><b><font size="2">Payout Level<BR>(% of gross margin Performance Shares earned)</font></b></p>
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<p style="MARGIN: 0.1in 0in 0.5pt; TEXT-ALIGN: center" align="center"><b><font size="2">Gross Margin %</font></b></p>
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<p style="MARGIN-BOTTOM: 0.5pt; TEXT-ALIGN: center" align="center"><font size="2">100</font></p>
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<p style="MARGIN-BOTTOM: 0.5pt; TEXT-ALIGN: center" align="center"><font size="2">1 GW</font></p>
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<p style="MARGIN-BOTTOM: 0.5pt; TEXT-ALIGN: center" align="center">&nbsp;</p>
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<p style="MARGIN-BOTTOM: 0.5pt; TEXT-ALIGN: center" align="center"><font size="2">100</font></p>
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<p style="MARGIN-BOTTOM: 0.5pt; TEXT-ALIGN: center" align="center"><font size="2">40</font></p>
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<p style="MARGIN-BOTTOM: 0.5pt; TEXT-ALIGN: center" align="center"><font size="2">95</font></p>
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<p style="MARGIN-BOTTOM: 0.5pt; TEXT-ALIGN: center" align="center"><font size="2">980 MW</font></p>
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<p style="MARGIN-BOTTOM: 0.5pt; TEXT-ALIGN: center" align="center">&nbsp;</p>
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<p style="MARGIN-BOTTOM: 0.5pt; TEXT-ALIGN: center" align="center"><font size="2">95</font></p>
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<p style="MARGIN-BOTTOM: 0.5pt; TEXT-ALIGN: center" align="center"><font size="2">39</font></p>
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<p style="MARGIN-BOTTOM: 0.5pt; TEXT-ALIGN: center" align="center"><font size="2">90</font></p>
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<p style="MARGIN-BOTTOM: 0.5pt; TEXT-ALIGN: center" align="center"><font size="2">960 MW</font></p>
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<p style="MARGIN-BOTTOM: 0.5pt; TEXT-ALIGN: center" align="center">&nbsp;</p>
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<p style="MARGIN-BOTTOM: 0.5pt; TEXT-ALIGN: center" align="center"><font size="2">90</font></p>
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<p style="MARGIN-BOTTOM: 0.5pt; TEXT-ALIGN: center" align="center"><font size="2">38</font></p>
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<p style="MARGIN-BOTTOM: 0.5pt; TEXT-ALIGN: center" align="center"><font size="2">85</font></p>
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<p style="MARGIN-BOTTOM: 0.5pt; TEXT-ALIGN: center" align="center"><font size="2">940 MW</font></p>
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<p style="MARGIN-BOTTOM: 0.5pt; TEXT-ALIGN: center" align="center">&nbsp;</p>
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<p style="MARGIN-BOTTOM: 0.5pt; TEXT-ALIGN: center" align="center"><font size="2">85</font></p>
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<p style="MARGIN-BOTTOM: 0.5pt; TEXT-ALIGN: center" align="center"><font size="2">37</font></p>
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<p style="MARGIN-BOTTOM: 0.5pt; TEXT-ALIGN: center" align="center"><font size="2">80</font></p>
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<p style="MARGIN-BOTTOM: 0.5pt; TEXT-ALIGN: center" align="center"><font size="2">920 MW</font></p>
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<p style="MARGIN-BOTTOM: 0.5pt; TEXT-ALIGN: center" align="center">&nbsp;</p>
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<p style="MARGIN-BOTTOM: 0.5pt; TEXT-ALIGN: center" align="center"><font size="2">80</font></p>
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<p style="MARGIN-BOTTOM: 0.5pt; TEXT-ALIGN: center" align="center"><font size="2">36</font></p>
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<p style="MARGIN-BOTTOM: 0.5pt; TEXT-ALIGN: center" align="center"><font size="2">75</font></p>
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<td style="BORDER-RIGHT: black 1pt solid; PADDING-RIGHT: 5.4pt; BORDER-TOP: medium none; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: black 1pt solid" valign="top" width="179">
<p style="MARGIN-BOTTOM: 0.5pt; TEXT-ALIGN: center" align="center"><font size="2">900 MW</font></p>
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<p style="MARGIN-BOTTOM: 0.5pt; TEXT-ALIGN: center" align="center">&nbsp;</p>
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<td style="BORDER-RIGHT: black 1pt solid; PADDING-RIGHT: 5.4pt; BORDER-TOP: medium none; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: black 1pt solid" valign="top" width="164">
<p style="MARGIN-BOTTOM: 0.5pt; TEXT-ALIGN: center" align="center"><font size="2">75</font></p>
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<p style="MARGIN-BOTTOM: 0.5pt; TEXT-ALIGN: center" align="center"><font size="2">35</font></p>
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<p style="MARGIN-BOTTOM: 0.5pt; TEXT-ALIGN: center" align="center"><font size="2">70</font></p>
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<p style="MARGIN-BOTTOM: 0.5pt; TEXT-ALIGN: center" align="center"><font size="2">880 MW</font></p>
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<p style="MARGIN-BOTTOM: 0.5pt; TEXT-ALIGN: center" align="center">&nbsp;</p>
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<td style="BORDER-RIGHT: black 1pt solid; PADDING-RIGHT: 5.4pt; BORDER-TOP: medium none; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: black 1pt solid" valign="top" width="164">
<p style="MARGIN-BOTTOM: 0.5pt; TEXT-ALIGN: center" align="center"><font size="2">70</font></p>
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<p style="MARGIN-BOTTOM: 0.5pt; TEXT-ALIGN: center" align="center"><font size="2">34</font></p>
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<p style="MARGIN-BOTTOM: 0.5pt; TEXT-ALIGN: center" align="center"><font size="2">65</font></p>
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<td style="BORDER-RIGHT: black 1pt solid; PADDING-RIGHT: 5.4pt; BORDER-TOP: medium none; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: black 1pt solid" valign="top" width="179">
<p style="MARGIN-BOTTOM: 0.5pt; TEXT-ALIGN: center" align="center"><font size="2">860 MW</font></p>
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<p style="MARGIN-BOTTOM: 0.5pt; TEXT-ALIGN: center" align="center">&nbsp;</p>
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<td style="BORDER-RIGHT: black 1pt solid; PADDING-RIGHT: 5.4pt; BORDER-TOP: medium none; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: black 1pt solid" valign="top" width="164">
<p style="MARGIN-BOTTOM: 0.5pt; TEXT-ALIGN: center" align="center"><font size="2">65</font></p>
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<td style="BORDER-RIGHT: black 1pt solid; PADDING-RIGHT: 5.4pt; BORDER-TOP: medium none; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: black 1pt solid" valign="top" width="130">
<p style="MARGIN-BOTTOM: 0.5pt; TEXT-ALIGN: center" align="center"><font size="2">33</font></p>
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<p style="MARGIN-BOTTOM: 0.5pt; TEXT-ALIGN: center" align="center"><font size="2">60</font></p>
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<td style="BORDER-RIGHT: black 1pt solid; PADDING-RIGHT: 5.4pt; BORDER-TOP: medium none; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: black 1pt solid" valign="top" width="179">
<p style="MARGIN-BOTTOM: 0.5pt; TEXT-ALIGN: center" align="center"><font size="2">840 MW</font></p>
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<p style="MARGIN-BOTTOM: 0.5pt; TEXT-ALIGN: center" align="center">&nbsp;</p>
</td>

<td style="BORDER-RIGHT: black 1pt solid; PADDING-RIGHT: 5.4pt; BORDER-TOP: medium none; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: black 1pt solid" valign="top" width="164">
<p style="MARGIN-BOTTOM: 0.5pt; TEXT-ALIGN: center" align="center"><font size="2">60</font></p>
</td>

<td style="BORDER-RIGHT: black 1pt solid; PADDING-RIGHT: 5.4pt; BORDER-TOP: medium none; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: black 1pt solid" valign="top" width="130">
<p style="MARGIN-BOTTOM: 0.5pt; TEXT-ALIGN: center" align="center"><font size="2">32</font></p>
</td>
</tr>

<tr style="page-break-inside: avoid">
<td style="BORDER-RIGHT: black 1pt solid; PADDING-RIGHT: 5.4pt; BORDER-TOP: medium none; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; BORDER-LEFT: black 1pt solid; PADDING-TOP: 0in; BORDER-BOTTOM: black 1pt solid" valign="top" width="130">
<p style="MARGIN-BOTTOM: 0.5pt; TEXT-ALIGN: center" align="center"><font size="2">55</font></p>
</td>

<td style="BORDER-RIGHT: black 1pt solid; PADDING-RIGHT: 5.4pt; BORDER-TOP: medium none; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: black 1pt solid" valign="top" width="179">
<p style="MARGIN-BOTTOM: 0.5pt; TEXT-ALIGN: center" align="center"><font size="2">820 MW</font></p>
</td>

<td style="BORDER-RIGHT: black 1pt solid; PADDING-RIGHT: 5.4pt; BORDER-TOP: medium none; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: black 1pt solid" valign="top" width="46">
<p style="MARGIN-BOTTOM: 0.5pt; TEXT-ALIGN: center" align="center">&nbsp;</p>
</td>

<td style="BORDER-RIGHT: black 1pt solid; PADDING-RIGHT: 5.4pt; BORDER-TOP: medium none; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: black 1pt solid" valign="top" width="164">
<p style="MARGIN-BOTTOM: 0.5pt; TEXT-ALIGN: center" align="center"><font size="2">55</font></p>
</td>

<td style="BORDER-RIGHT: black 1pt solid; PADDING-RIGHT: 5.4pt; BORDER-TOP: medium none; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: black 1pt solid" valign="top" width="130">
<p style="MARGIN-BOTTOM: 0.5pt; TEXT-ALIGN: center" align="center"><font size="2">31</font></p>
</td>
</tr>

<tr style="page-break-inside: avoid">
<td style="BORDER-RIGHT: black 1pt solid; PADDING-RIGHT: 5.4pt; BORDER-TOP: medium none; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; BORDER-LEFT: black 1pt solid; PADDING-TOP: 0in; BORDER-BOTTOM: black 1pt solid" valign="top" width="130">
<p style="MARGIN-BOTTOM: 0.5pt; TEXT-ALIGN: center" align="center"><font size="2">50</font></p>
</td>

<td style="BORDER-RIGHT: black 1pt solid; PADDING-RIGHT: 5.4pt; BORDER-TOP: medium none; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: black 1pt solid" valign="top" width="179">
<p style="MARGIN-BOTTOM: 0.5pt; TEXT-ALIGN: center" align="center"><font size="2">800 MW</font></p>
</td>

<td style="BORDER-RIGHT: black 1pt solid; PADDING-RIGHT: 5.4pt; BORDER-TOP: medium none; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: black 1pt solid" valign="top" width="46">
<p style="MARGIN-BOTTOM: 0.5pt; TEXT-ALIGN: center" align="center">&nbsp;</p>
</td>

<td style="BORDER-RIGHT: black 1pt solid; PADDING-RIGHT: 5.4pt; BORDER-TOP: medium none; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: black 1pt solid" valign="top" width="164">
<p style="MARGIN-BOTTOM: 0.5pt; TEXT-ALIGN: center" align="center"><font size="2">50</font></p>
</td>

<td style="BORDER-RIGHT: black 1pt solid; PADDING-RIGHT: 5.4pt; BORDER-TOP: medium none; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: black 1pt solid" valign="top" width="130">
<p style="MARGIN-BOTTOM: 0.5pt; TEXT-ALIGN: center" align="center"><font size="2">30</font></p>
</td>
</tr>
</table>
</div>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"><b><font size="2">C.&nbsp;&nbsp;&nbsp;Nameplate Capacity Less than 800 MW or Gross Margin Less than 30%</font></b></p>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"><font size="2">If the Company&rsquo;s nameplate capacity is less than 800 MW</font> <i><b><font size="2">or</font></b></i> <font size="2">the gross margin is less than 30% (as of the dates specified above), none of the Performance Shares vest.</font></p>
<!-- EEDocs PBStart-->

<p style="PAGE-BREAK-BEFORE: always"></p>
<PAGE><!-- EEDocs PBEnd-->

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"><font size="2">Energy Conversion Devices, Inc.</font></p>

<div align="left">
<table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" border="0">
<tr>
<td valign="top" nowrap width="540">
<p><font size="2">Form of Performance Share Award Agreement</font></p>
</td>

<td valign="top" nowrap width="80">
<p align="right"><font size="2">Page</font> <font size="2">13 of 15</font></p>
</td>
</tr>
</table>
</div>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; BORDER-BOTTOM: black 2.25pt double; TEXT-ALIGN: left">&nbsp;</p>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 6pt; TEXT-ALIGN: center"><b><font size="2">EXHIBIT C</font></b></p>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; TEXT-ALIGN: center"><b><font size="2">DEFERRAL ELECTION FORM</font></b></p>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center"><b><font size="2">Performance Share Award Agreement</font></b></p>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center"><b><font size="2">under the Energy Conversion Devices, Inc.</font></b></p>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 24pt; TEXT-ALIGN: center"><b><font size="2">2006 Stock Incentive Plan</font></b></p>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 24pt; TEXT-INDENT: 0.5in; TEXT-ALIGN: left"><font size="2">You have the opportunity to make a one-time election to defer payment of all or a portion of the Performance Shares granted to you on the date below. If you wish to make this election, please complete this Form and return a signed copy to ______________</font> <i><b><font size="2">no later than [December 31, 2008]. If you do not return this form by that deadline, payment of your
Performance Shares will not be deferred.</font></b></i></p>

<div align="left">
<table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="90%" border="0">
<tr>
<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" nowrap width="25%">
<p style="MARGIN: 0in 0in 0pt; TEXT-INDENT: 0in"><b><font size="2">Participant:</font></b></p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" nowrap width="45%">
<p style="MARGIN: 0in 0in 0pt; TEXT-INDENT: 0in; BORDER-BOTTOM: black 1px solid">&nbsp;</p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" nowrap width="35">
<p style="MARGIN: 0in 0in 0pt; TEXT-INDENT: 0in">&nbsp;</p>
</td>
</tr>
</table>
</div>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"></p>

<div align="left">
<table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="90%" border="0">
<tr>
<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" nowrap width="25%">
<p style="MARGIN: 0in 0in 0pt; TEXT-INDENT: 0in"><b><font size="2">Grant Date of<br>
Performance Shares:</font></b></p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" nowrap width="45%">
<p style="MARGIN: 0in 0in 0pt; TEXT-INDENT: 0in; BORDER-BOTTOM: black 1px solid">&nbsp;</p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" nowrap width="35">
<p style="MARGIN: 0in 0in 0pt; TEXT-INDENT: 0in">&nbsp;</p>
</td>
</tr>
</table>
</div>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 18pt; TEXT-INDENT: 0.53in; TEXT-ALIGN: left"><font size="2">If you elect to defer payment of Performance Shares, the amounts that otherwise would have been paid on the payment date determined under the Performance Share Award Agreement evidencing your award will instead be credited to a hypothetical account, net of mandatory taxes, and paid in Company stock at the time you specify below. You will not have any rights (including voting rights)
as a shareholder with respect to the Performance Shares until they are actually paid to you.</font></p>

<div align="center">
<table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" border="0">
<tr>
<td style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="10%">
<p style="MARGIN: 0in"><font size="2"><b>Deferral Election</b></font></p>
</td>

<td style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="5%">
<p style="MARGIN: 0in">&nbsp;</p>
</td>

<td style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="5%">
<p style="MARGIN-TOP: 0in; MARGIN-BOTTOM: 0pt"></p>
</td>

<td style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="70%">
<p style="MARGIN-TOP: 0in; MARGIN-BOTTOM: 0pt"><font size="2">I hereby elect to defer receipt of all (100%) of my Performance Shares pursuant to the terms of this deferral election form.</font></p>
</td>
</tr>
</table>
<br>

<table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" border="0">
<tr>
<td style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="10%">
<p style="MARGIN: 0in">&nbsp;</p>
</td>

<td style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="5%">
<p style="MARGIN: 0in">&nbsp;</p>
</td>

<td style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="5%">
<p style="MARGIN-TOP: 0in; MARGIN-BOTTOM: 0pt"></p>
</td>

<td style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="70%">
<p style="MARGIN-TOP: 0in; MARGIN-BOTTOM: 0pt"><font size="2">I hereby elect to defer receipt of _____% of my Performance Shares pursuant to the terms of this deferral election form. (If my election would otherwise result in a payment of partial shares, the number of Performance Shares deferred shall be rounded to the nearest whole number.)</font></p>
</td>
</tr>
</table>
</div>
<br>
<br>

<p style="MARGIN: 0in 0in 0.25in 1in"><font size="2">My election to defer (if any), will be effective only to the extent that it complies with the requirements of section 409A of the Internal Revenue Code (&ldquo;&sect;&nbsp;409A&rdquo;) and IRS Notice 2007-86.</font></p>
<!-- EEDocs PBStart-->

<p style="PAGE-BREAK-BEFORE: always"></p>
<PAGE><!-- EEDocs PBEnd-->

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"><font size="2">Energy Conversion Devices, Inc.</font></p>

<div align="left">
<table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" border="0">
<tr>
<td valign="top" nowrap width="540">
<p><font size="2">Form of Performance Share Award Agreement</font></p>
</td>

<td valign="top" nowrap width="80">
<p align="right"><font size="2">Page</font> <font size="2">14 of 15</font></p>
</td>
</tr>
</table>
</div>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; BORDER-BOTTOM: black 2.25pt double; TEXT-ALIGN: left">&nbsp;</p>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

<div align="left">
<table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" border="0">
<tr>
<td style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 0.2in; PADDING-TOP: 0in" valign="top" width="10%">
<p style="MARGIN: 0in"><font size="2"><b>Payment Date</b></font></p>
</td>

<td style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 0.2in; PADDING-TOP: 0in" valign="top" width="5%">
<p style="MARGIN: 0in">&nbsp;</p>
</td>

<td style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 0.2in; PADDING-TOP: 0in" valign="top" colspan="3">
<p style="MARGIN-TOP: 0in; MARGIN-BOTTOM: 0in"><font size="2">I hereby irrevocably elect to defer payment of the portion of my Performance Shares designated above until (</font><i><font size="2">select only one of the following</font></i><font size="2">):</font></p>
</td>
</tr>

<tr>
<td style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 0.15in; PADDING-TOP: 0in" valign="top" width="10%">
<p style="MARGIN: 0in">&nbsp;</p>
</td>

<td style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 0.15in; PADDING-TOP: 0in" valign="top" width="5%">
<p style="MARGIN: 0in">&nbsp;</p>
</td>

<td style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 0.15in; PADDING-TOP: 0in" valign="top" width="5%">
<p style="MARGIN-TOP: 0in; MARGIN-BOTTOM: 0pt">&nbsp;</p>
</td>

<td style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 0.15in; PADDING-TOP: 0in" valign="top" width="5%">
<p style="MARGIN-TOP: 0in; MARGIN-BOTTOM: 0in"></p>
</td>

<td style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 0.15in; PADDING-TOP: 0in" valign="top" width="50%">
<p style="MARGIN-TOP: 0in; MARGIN-BOTTOM: 0in"><font size="2"><u>&nbsp;&nbsp;&nbsp;/&nbsp;&nbsp;&nbsp;</u> &nbsp;&nbsp;(</font><i><font size="2">specify month/year</font></i><font size="2">)</font></p>
</td>
</tr>

<tr>
<td style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 0.15in; PADDING-TOP: 0in" valign="top" width="10%">
<p style="MARGIN: 0in 0in 0.2in">&nbsp;</p>
</td>

<td style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 0.15in; PADDING-TOP: 0in" valign="top" width="5%">
<p style="MARGIN: 0in 0in 0.2in">&nbsp;</p>
</td>

<td style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 0.15in; PADDING-TOP: 0in" valign="top" width="5%">
<p style="MARGIN-TOP: 0in; MARGIN-BOTTOM: 0pt">&nbsp;</p>
</td>

<td style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 0.15in; PADDING-TOP: 0in" valign="top" width="5%">
<p style="MARGIN-TOP: 0in; MARGIN-BOTTOM: 0.2in"></p>
</td>

<td style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 0.15in; PADDING-TOP: 0in" valign="top" width="50%">
<p style="MARGIN-TOP: 0in; MARGIN-BOTTOM: 0.2in"><font size="2"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u> &nbsp;&nbsp;month(s) following the month of my separation from service (as defined in &sect;&nbsp;409A)</font></p>
</td>
</tr>

<tr>
<td style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 0.25in; PADDING-TOP: 0in" valign="top" width="10%">
<p style="MARGIN: 0in 0in 0.2in">&nbsp;</p>
</td>

<td style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 0.25in; PADDING-TOP: 0in" valign="top" width="5%">
<p style="MARGIN: 0in 0in 0.2in">&nbsp;</p>
</td>

<td style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 0.25in; PADDING-TOP: 0in" valign="top" width="5%">
<p style="MARGIN-TOP: 0in; MARGIN-BOTTOM: 0pt">&nbsp;</p>
</td>

<td style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 0.25in; PADDING-TOP: 0in" valign="top" width="5%">
<p style="MARGIN-TOP: 0in; MARGIN-BOTTOM: 0.2in"></p>
</td>

<td style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 0.25in; PADDING-TOP: 0in" valign="top" width="50%">
<p style="MARGIN-TOP: 0in; MARGIN-BOTTOM: 0.2in"><font size="2"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u> &nbsp;&nbsp;calendar year(s) following the calendar year of my separation from service (as defined in &sect;&nbsp;409A) (Payment will be made on January 1 of the calendar year of payment.)</font></p>
</td>
</tr>
</table>
</div>

<p style="MARGIN: 0in 0in 12pt 1in"><font size="2">Notwithstanding my payment election:</font></p>

<div align="left">
<table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" border="0">
<tr>
<td style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 0.15in; PADDING-TOP: 0in" valign="top" width="10%">
<p style="MARGIN: 0in 0in 0.2in">&nbsp;</p>
</td>

<td style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 0.15in; PADDING-TOP: 0in" valign="top" width="5%">
<p style="MARGIN: 0in 0in 0.2in 0.1in"><font size="4"><b>&bull;</b></font></p>
</td>

<td style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 0.15in; PADDING-TOP: 0in" valign="top" width="65%">
<p style="MARGIN-TOP: 0in; MARGIN-BOTTOM: 0.2in"><font size="2">in the event of a Change in Control before I have received my full payment, section 7(a) and (b) of the Performance Share Award Agreement shall apply and payment shall be made as described above, except that if the Change in Control constitutes a &ldquo;409A Change in Control&rdquo; (as defined in the Performance Share Award Agreement), payment shall be made in a lump sum on the date of a &ldquo;409A
Change in Control&rdquo;;</font></p>
</td>
</tr>

<tr>
<td style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 0.15in; PADDING-TOP: 0in" valign="top" width="10%">
<p style="MARGIN: 0in 0in 0.2in">&nbsp;</p>
</td>

<td style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 0.15in; PADDING-TOP: 0in" valign="top" width="5%">
<p style="MARGIN: 0in 0in 0.2in 0.1in"><font size="4"><b>&bull;</b></font></p>
</td>

<td style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 0.15in; PADDING-TOP: 0in" valign="top" width="65%">
<p style="MARGIN-TOP: 0in; MARGIN-BOTTOM: 0.2in"><font size="2">if I die before I have received my full payment, payment of the remaining portion of Performance Shares under this deferral arrangement shall be made to my beneficiary (as determined under the Plan) in the month following my death;</font></p>
</td>
</tr>

<tr>
<td style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 0.25in; PADDING-TOP: 0in" valign="top" width="10%">
<p style="MARGIN: 0in 0in 0.2in">&nbsp;</p>
</td>

<td style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 0.25in; PADDING-TOP: 0in" valign="top" width="5%">
<p style="MARGIN: 0in 0in 0.2in 0.1in"><font size="4"><b>&bull;</b></font></p>
</td>

<td style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 0.25in; PADDING-TOP: 0in" valign="top" width="65%">
<p style="MARGIN-TOP: 0in; MARGIN-BOTTOM: 0.2in"><font size="2">if I am a &ldquo;specified employee&rdquo; (as defined in &sect;&nbsp;409A) on the date of my separation from service, any payment triggered by my separation from service that would otherwise be due within the first six months following my separation from service will instead be paid in the seventh month following my separation from service (or, if earlier, in the month following my death).</font></p>
</td>
</tr>
</table>
</div>

<div align="left">
<table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" border="0">
<tr>
<td style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 0.15in; PADDING-TOP: 0in" valign="top" width="10%">
<p style="MARGIN: 0in 0in 0.2in"><font size="2"><b>Payment Form</b></font></p>
</td>

<td style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 0.15in; PADDING-TOP: 0in" valign="top" width="5%">
<p style="MARGIN: 0in 0in 0.2in">&nbsp;</p>
</td>

<td style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 0.15in; PADDING-TOP: 0in" valign="top" colspan="3">
<p style="MARGIN-TOP: 0in; MARGIN-BOTTOM: 0.2in"><font size="2">I hereby elect to have my Performance Shares paid in the following terms:</font></p>
</td>
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<tr>
<td style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 0.15in; PADDING-TOP: 0in" valign="top" width="10%">
<p style="MARGIN: 0in 0in 0.2in">&nbsp;</p>
</td>

<td style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 0.15in; PADDING-TOP: 0in" valign="top" width="5%">
<p style="MARGIN: 0in 0in 0.2in">&nbsp;</p>
</td>

<td style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 0.15in; PADDING-TOP: 0in" valign="top" width="5%">
<p style="MARGIN-TOP: 0in; MARGIN-BOTTOM: 0pt">&nbsp;</p>
</td>

<td style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 0.15in; PADDING-TOP: 0in" valign="top" width="5%">
<p style="MARGIN-TOP: 0in; MARGIN-BOTTOM: 0.2in"></p>
</td>

<td style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 0.15in; PADDING-TOP: 0in" valign="top" width="50%">
<p style="MARGIN-TOP: 0in; MARGIN-BOTTOM: 0.2in"><font size="2">A single lump-sum payment</font></p>
</td>
</tr>

<tr>
<td style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 0.25in; PADDING-TOP: 0in" valign="top" width="10%">
<p style="MARGIN: 0in 0in 0.2in">&nbsp;</p>
</td>

<td style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 0.25in; PADDING-TOP: 0in" valign="top" width="5%">
<p style="MARGIN: 0in 0in 0.2in">&nbsp;</p>
</td>

<td style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 0.25in; PADDING-TOP: 0in" valign="top" width="5%">
<p style="MARGIN-TOP: 0in; MARGIN-BOTTOM: 0pt">&nbsp;</p>
</td>

<td style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 0.25in; PADDING-TOP: 0in" valign="top" width="5%">
<p style="MARGIN-TOP: 0in; MARGIN-BOTTOM: 0.2in"></p>
</td>

<td style="PADDING-RIGHT: 0pt; PADDING-LEFT: 0pt; PADDING-BOTTOM: 0.25in; PADDING-TOP: 0in" valign="top" width="50%">
<p style="MARGIN-TOP: 0in; MARGIN-BOTTOM: 0.2in"><font size="2"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u> &nbsp;&nbsp;approximately equal annual installment payments (The first payment will be made at the time specified above; subsequent payments will be made on January 1 of the calendar year of payment); installment payments may be accelerated on account of a 409A Change in Control or death, as described above.</font></p>
</td>
</tr>
</table>
</div>

<p style="MARGIN: 0in 0in 0.25in 1in"><i><font size="2">Please note that if installments are elected, each payment will be calculated on the payment date by dividing the account balance by the number of remaining installments.</font></i></p>
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<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"><font size="2">Energy Conversion Devices, Inc.</font></p>

<div align="left">
<table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" border="0">
<tr>
<td valign="top" nowrap width="540">
<p><font size="2">Form of Performance Share Award Agreement</font></p>
</td>

<td valign="top" nowrap width="80">
<p align="right"><font size="2">Page</font> <font size="2">15 of 15</font></p>
</td>
</tr>
</table>
</div>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; BORDER-BOTTOM: black 2.25pt double; TEXT-ALIGN: left">&nbsp;</p>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 18pt; TEXT-ALIGN: left"><b><font size="2">Terms and Conditions</font></b></p>

<p><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><u><font size="2">General Asset Obligation</font></u><font size="2">. The obligation to pay the amounts deferred is an unfunded and unsecured obligation of Energy Conversion Devices, Inc. (the &ldquo;Company&rdquo;). I shall have no legal or equitable rights, interest, or claims in any property or assets of the Company with respect to
amounts deferred under this agreement.</font></p>

<p><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><u><font size="2">Withholding</font></u><font size="2">. The Company shall have the right to deduct from all payments under this deferral arrangement any federal, state, or local income or employment tax required by law to be withheld. Although this arrangement is intended to allow me to defer federal income tax, the amounts that I elect
to defer generally will be subject to federal employment tax as I earn them.</font></p>

<p><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><u><font size="2">Nonassignable</font></u><font size="2">. My rights and interest under this deferral arrangement may not be assigned, pledged, or transferred, other than to a designated beneficiary or my estate upon death, or to a person named in a domestic relations order.</font></p>

<p><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><u><font size="2">Section 409A</font></u><font size="2">. This form shall be interpreted to ensure that my deferral election and the payments made pursuant to the election comply with &sect;&nbsp;409A; provided, however, that nothing in this form or otherwise shall be interpreted or construed to transfer any liability for any tax
(including a tax or penalty due as a result of a failure to comply with &sect;&nbsp;409A) from me to the Company or to any other individual or entity.</font></p>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;By executing this Deferral Election Form, I hereby acknowledge my understanding of, and agreement with, its terms.</font></p>
<br>

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<p style="BORDER-TOP: black 1px solid"><font size="2">Participant Signature</font></p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0.25in; PADDING-TOP: 0in" valign="top" nowrap width="5%">
<p>&nbsp;</p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0.25in; PADDING-TOP: 0in" valign="top" nowrap width="47%">
<p style="BORDER-TOP: black 1px solid; MARGIN-BOTTOM: 6pt"><font size="2">Date</font></p>
</td>
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<p style="BORDER-TOP: black 1px solid"><b><font size="2">[insert name/title]</font></b></p>
</td>

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<p>&nbsp;</p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 0.25in; PADDING-TOP: 0in" valign="top" nowrap width="47%">
<p style="BORDER-TOP: black 1px solid"><font size="2">Date</font></p>
</td>
</tr>
</table>
</div>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center">&nbsp;</p>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>
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</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.4
<SEQUENCE>5
<FILENAME>ex10p4_amendedexecsevplan.htm
<DESCRIPTION>AMENDED EXECUTIVE SEVERANCE PLAN
<TEXT>
<html>
<head>
<title></title>
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<body style="FONT-FAMILY: 'Times New Roman'" bgcolor="#ffffff">
<div style="WIDTH: 620px">
<p style="MARGIN-TOP: 130pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>
<hr width="45%" color="black" size="2">
<br>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center"><b><font size="2">ENERGY CONVERSION DEVICES, INC.</font></b></p>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; TEXT-ALIGN: center"><b><font size="2">EXECUTIVE SEVERANCE PLAN</font></b></p>
<hr width="45%" color="black" size="2">
<br>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; TEXT-ALIGN: center"><font size="2">Effective July 24, 2007</font></p>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; TEXT-ALIGN: center"><font size="2">(As amended through September 30, 2008)</font></p>
<hr width="90%" color="black" size="2">
<br>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>
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<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center"><b><font size="2">TABLE OF CONTENTS</font></b></p>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="2%" nowrap valign=top style='padding:12.0pt 0in 12.0pt 0in; '>
            <p ><font size=1>&nbsp;</font></p> </td>
        <td width="14%" nowrap valign=top style='padding:12.0pt 0in 12.0pt 0in; '>
            <p ><b><font size=2>Section 1.</font></b></p> </td>
        <td width="78%" nowrap valign=top style='padding:12.0pt 0in 12.0pt 0in; '>
            <p  style='margin:0in;margin-bottom:.0001pt'><a href="#TOC2a"><u><b><font size=2>Introduction</font></b></u></a></p> </td>
        <td width="4%" nowrap valign=top style='padding:12.0pt 0in 12.0pt 0in; '>
            <p ><b><font size=2>1</font></b></p> </td> </tr></table>
</div>



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<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="7%" nowrap valign=top >
            <p  style='margin:0in;margin-bottom:.0001pt'><font size=1>&nbsp;</font></p> </td>
        <td width="7%" nowrap valign=top >
            <p  style='margin:0in;margin-bottom:.0001pt'><a href="#TOC3a"><u><b><font size=2>1.1.</font></b></u></a></p> </td>
        <td width="80%" nowrap valign=top >
            <p ><b><font size=2>Purpose.</font></b></p> </td>
        <td width="4%" nowrap valign=top >
            <p ><b><font size=2>1</font></b></p> </td> </tr></table>
</div>



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<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="7%" nowrap valign=top >
            <p  style='margin:0in;margin-bottom:.0001pt'><font size=1>&nbsp;</font></p> </td>
        <td width="7%" nowrap valign=top >
            <p  style='margin:0in;margin-bottom:.0001pt'><a href="#TOC4a"><u><b><font size=2>1.2.</font></b></u></a></p> </td>
        <td width="80%" nowrap valign=top >
            <p ><b><font size=2>Effective Date.</font></b></p> </td>
        <td width="4%" nowrap valign=top >
            <p ><b><font size=2>1</font></b></p> </td> </tr></table>
</div>



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<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="2%" nowrap valign=top style='padding:12.0pt 0in 12.0pt 0in; '>
            <p ><font size=1>&nbsp;</font></p> </td>
        <td width="14%" nowrap valign=top style='padding:12.0pt 0in 12.0pt 0in; '>
            <p ><b><font size=2>Section 2.</font></b></p> </td>
        <td width="78%" nowrap valign=top style='padding:12.0pt 0in 12.0pt 0in; '>
            <p  style='margin:0in;margin-bottom:.0001pt'><a href="#TOC5a"><u><b><font size=2>Definitions and Construction</font></b></u></a></p> </td>
        <td width="4%" nowrap valign=top style='padding:12.0pt 0in 12.0pt 0in; '>
            <p ><b><font size=2>2</font></b></p> </td> </tr></table>
</div>



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<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="7%" nowrap valign=top >
            <p  style='margin:0in;margin-bottom:.0001pt'><font size=1>&nbsp;</font></p> </td>
        <td width="7%" nowrap valign=top >
            <p  style='margin:0in;margin-bottom:.0001pt'><a href="#TOC6a"><u><b><font size=2>2.1.</font></b></u></a></p> </td>
        <td width="80%" nowrap valign=top >
            <p ><b><font size=2>Definitions.</font></b></p> </td>
        <td width="4%" nowrap valign=top >
            <p ><b><font size=2>2</font></b></p> </td> </tr></table>
</div>



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        <td width="7%" nowrap valign=top >
            <p  style='margin:0in;margin-bottom:.0001pt'><font size=1>&nbsp;</font></p> </td>
        <td width="7%" nowrap valign=top >
            <p  style='margin:0in;margin-bottom:.0001pt'><a href="#TOC7a"><u><b><font size=2>2.2.</font></b></u></a></p> </td>
        <td width="80%" nowrap valign=top >
            <p ><b><font size=2>Gender and Number.</font></b></p> </td>
        <td width="4%" nowrap valign=top >
            <p ><b><font size=2>3</font></b></p> </td> </tr></table>
</div>



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<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
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        <td width="7%" nowrap valign=top >
            <p  style='margin:0in;margin-bottom:.0001pt'><font size=1>&nbsp;</font></p> </td>
        <td width="7%" nowrap valign=top >
            <p ><font size=2><a href="#TOC8a"><u><b>2.3.</b></u></a></font></p> </td>
        <td width="80%" nowrap valign=top >
            <p  style='margin:0in;margin-bottom:.0001pt'><font size=2><b>Section 409A</b></font></p> </td>
        <td width="4%" nowrap valign=top >
            <p ><b><font size=2>3</font></b></p> </td> </tr></table>
</div>



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        <td width="2%" nowrap valign=top style='padding:12.0pt 0in 12.0pt 0in; '>
            <p ><font size=1>&nbsp;</font></p> </td>
        <td width="14%" nowrap valign=top style='padding:12.0pt 0in 12.0pt 0in; '>
            <p ><b><font size=2>Section 3.</font></b></p> </td>
        <td width="78%" nowrap valign=top style='padding:12.0pt 0in 12.0pt 0in; '>
            <p  style='margin:0in;margin-bottom:.0001pt'><a href="#TOC9a"><u><b><font size=2>Participation by Eligible Executives</font></b></u></a></p> </td>
        <td width="4%" nowrap valign=top style='padding:12.0pt 0in 12.0pt 0in; '>
            <p ><b><font size=2>4</font></b></p> </td> </tr></table>
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            <p  style='margin:0in;margin-bottom:.0001pt'><font size=1>&nbsp;</font></p> </td>
        <td width="7%" nowrap valign=top >
            <p  style='margin:0in;margin-bottom:.0001pt'><a href="#TOC10a"><u><b><font size=2>3.1.</font></b></u></a></p> </td>
        <td width="80%" nowrap valign=top >
            <p ><b><font size=2>Generally.</font></b></p> </td>
        <td width="4%" nowrap valign=top >
            <p ><b><font size=2>4</font></b></p> </td> </tr></table>
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            <p  style='margin:0in;margin-bottom:.0001pt'><font size=1>&nbsp;</font></p> </td>
        <td width="7%" nowrap valign=top >
            <p  style='margin:0in;margin-bottom:.0001pt'><a href="#TOC11a"><u><b><font size=2>3.2.</font></b></u></a></p> </td>
        <td width="80%" nowrap valign=top >
            <p ><b><font size=2>Participation Agreement Required.</font></b></p> </td>
        <td width="4%" nowrap valign=top >
            <p ><b><font size=2>4</font></b></p> </td> </tr></table>
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        <td width="2%" nowrap valign=top style='padding:12.0pt 0in 12.0pt 0in; '>
            <p ><font size=1>&nbsp;</font></p> </td>
        <td width="14%" nowrap valign=top style='padding:12.0pt 0in 12.0pt 0in; '>
            <p ><b><font size=2>Section 4.</font></b></p> </td>
        <td width="78%" nowrap valign=top style='padding:12.0pt 0in 12.0pt 0in; '>
            <p  style='margin:0in;margin-bottom:.0001pt'><a href="#TOC12a"><u><b><font size=2>Severance Benefits</font></b></u></a></p> </td>
        <td width="4%" nowrap valign=top style='padding:12.0pt 0in 12.0pt 0in; '>
            <p ><b><font size=2>5</font></b></p> </td> </tr></table>
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            <p  style='margin:0in;margin-bottom:.0001pt'><font size=1>&nbsp;</font></p> </td>
        <td width="7%" nowrap valign=top >
            <p  style='margin:0in;margin-bottom:.0001pt'><a href="#TOC13a"><u><b><font size=2>4.1.</font></b></u></a></p> </td>
        <td width="80%" nowrap valign=top >
            <p ><b><font size=2>Basic Severance Benefits.</font></b></p> </td>
        <td width="4%" nowrap valign=top >
            <p ><b><font size=2>5</font></b></p> </td> </tr></table>
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            <p  style='margin:0in;margin-bottom:.0001pt'><font size=1>&nbsp;</font></p> </td>
        <td width="7%" nowrap valign=top >
            <p  style='margin:0in;margin-bottom:.0001pt'><a href="#TOC14a"><u><b><font size=2>4.2.</font></b></u></a></p> </td>
        <td width="80%" nowrap valign=top >
            <p ><b><font size=2>Medical and Dental Benefits.</font></b></p> </td>
        <td width="4%" nowrap valign=top >
            <p ><b><font size=2>7</font></b></p> </td> </tr></table>
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            <p  style='margin:0in;margin-bottom:.0001pt'><font size=1>&nbsp;</font></p> </td>
        <td width="7%" nowrap valign=top >
            <p  style='margin:0in;margin-bottom:.0001pt'><a href="#TOC15a"><u><b><font size=2>4.3.</font></b></u></a></p> </td>
        <td width="80%" nowrap valign=top >
            <p ><b><font size=2>Equity Awards</font></b></p> </td>
        <td width="4%" nowrap valign=top >
            <p ><b><font size=2>7</font></b></p> </td> </tr></table>
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            <p  style='margin:0in;margin-bottom:.0001pt'><font size=1>&nbsp;</font></p> </td>
        <td width="7%" nowrap valign=top >
            <p  style='margin:0in;margin-bottom:.0001pt'><a href="#TOC16a"><u><b><font size=2>4.4.</font></b></u></a></p> </td>
        <td width="80%" nowrap valign=top >
            <p ><b><font size=2>Outplacement Services</font></b></p> </td>
        <td width="4%" nowrap valign=top >
            <p ><b><font size=2>8</font></b></p> </td> </tr></table>
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            <p  style='margin:0in;margin-bottom:.0001pt'><font size=1>&nbsp;</font></p> </td>
        <td width="7%" nowrap valign=top >
            <p  style='margin:0in;margin-bottom:.0001pt'><a href="#TOC17a"><u><b><font size=2>4.5.</font></b></u></a></p> </td>
        <td width="80%" nowrap valign=top >
            <p ><b><font size=2>Gross-Up Payment/Reduction of Benefits</font></b></p> </td>
        <td width="4%" nowrap valign=top >
            <p ><b><font size=2>8</font></b></p> </td> </tr></table>
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            <p  style='margin:0in;margin-bottom:.0001pt'><a href="#TOC18a"><u><b><font size=2>4.6.</font></b></u></a></p> </td>
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            <p ><b><font size=2>Qualifying Termination.</font></b></p> </td>
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            <p ><b><font size=2>10</font></b></p> </td> </tr></table>
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            <p ><font size=1>&nbsp;</font></p> </td>
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            <p ><b><font size=2>Section 5.</font></b></p> </td>
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            <p  style='margin:0in;margin-bottom:.0001pt'><a href="#TOC19a"><u><b><font size=2>Covenants</font></b></u></a></p> </td>
        <td width="5%" nowrap valign=top style='padding:12.0pt 0in 12.0pt 0in; '>
            <p ><b><font size=2>12</font></b></p> </td> </tr></table>
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            <p  style='margin:0in;margin-bottom:.0001pt'><a href="#TOC20a"><u><b><font size=2>5.1.</font></b></u></a></p> </td>
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            <p ><b><font size=2>Generally.</font></b></p> </td>
        <td width="5%" nowrap valign=top >
            <p ><b><font size=2>12</font></b></p> </td> </tr></table>
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            <p  style='margin:0in;margin-bottom:.0001pt'><a href="#TOC21a"><u><b><font size=2>5.2.</font></b></u></a></p> </td>
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            <p ><b><font size=2>Noncompetition.</font></b></p> </td>
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            <p ><b><font size=2>12</font></b></p> </td> </tr></table>
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            <p  style='margin:0in;margin-bottom:.0001pt'><a href="#TOC22a"><u><b><font size=2>5.3.</font></b></u></a></p> </td>
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            <p ><b><font size=2>Interference with Business Relations.</font></b></p> </td>
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            <p ><b><font size=2>12</font></b></p> </td> </tr></table>
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            <p  style='margin:0in;margin-bottom:.0001pt'><a href="#TOC23a"><u><b><font size=2>5.4.</font></b></u></a></p> </td>
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            <p ><b><font size=2>Proprietary and Confidential Information.</font></b></p> </td>
        <td width="5%" nowrap valign=top >
            <p ><b><font size=2>13</font></b></p> </td> </tr></table>
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            <p  style='margin:0in;margin-bottom:.0001pt'><a href="#TOC24a"><u><b><font size=2>5.5.</font></b></u></a></p> </td>
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            <p ><b><font size=2>Nondisparagement</font></b></p> </td>
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            <p ><b><font size=2>13</font></b></p> </td> </tr></table>
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            <p  style='margin:0in;margin-bottom:.0001pt'><a href="#TOC25a"><u><b><font size=2>5.6.</font></b></u></a></p> </td>
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            <p ><b><font size=2>Cooperation</font></b></p> </td>
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            <p ><b><font size=2>13</font></b></p> </td> </tr></table>
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            <p  style='margin:0in;margin-bottom:.0001pt'><a href="#TOC26a"><u><b><font size=2>5.7.</font></b></u></a></p> </td>
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            <p ><b><font size=2>Recoupment</font></b></p> </td>
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            <p ><b><font size=2>14</font></b></p> </td> </tr></table>
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            <p ><b><font size=2>Section 6.</font></b></p> </td>
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            <p  style='margin:0in;margin-bottom:.0001pt'><a href="#TOC27a"><u><b><font size=2>Release</font></b></u></a></p> </td>
        <td width="5%" nowrap valign=top style='padding:12.0pt 0in 12.0pt 0in; '>
            <p ><b><font size=2>15</font></b></p> </td> </tr></table>
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            <p  style='margin:0in;margin-bottom:.0001pt'><a href="#TOC28a"><u><b><font size=2>6.1.</font></b></u></a></p> </td>
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            <p ><b><font size=2>Generally.</font></b></p> </td>
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            <p ><b><font size=2>15</font></b></p> </td> </tr></table>
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            <p  style='margin:0in;margin-bottom:.0001pt'><a href="#TOC29a"><u><b><font size=2>6.2.</font></b></u></a></p> </td>
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            <p ><b><font size=2>Time Limit for Providing Release.</font></b></p> </td>
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            <p ><b><font size=2>15</font></b></p> </td> </tr></table>
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            <p ><b><font size=2>Section 7.</font></b></p> </td>
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            <p  style='margin:0in;margin-bottom:.0001pt'><a href="#TOC30a"><u><b><font size=2>Nature of Participant&#146;s Interest in the Plan</font></b></u></a></p> </td>
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            <p ><b><font size=2>16</font></b></p> </td> </tr></table>
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            <p  style='margin:0in;margin-bottom:.0001pt'><a href="#TOC31a"><u><b><font size=2>7.1.</font></b></u></a></p> </td>
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            <p ><b><font size=2>No Right to Assets.</font></b></p> </td>
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            <p ><b><font size=2>16</font></b></p> </td> </tr></table>
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            <p  style='margin:0in;margin-bottom:.0001pt'><a href="#TOC32a"><u><b><font size=2>7.2.</font></b></u></a></p> </td>
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            <p ><b><font size=2>No Right to Transfer Interest.</font></b></p> </td>
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            <p ><b><font size=2>16</font></b></p> </td> </tr></table>
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            <p  style='margin:0in;margin-bottom:.0001pt'><a href="#TOC33a"><u><b><font size=2>7.3.</font></b></u></a></p> </td>
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            <p ><b><font size=2>No Employment Rights.</font></b></p> </td>
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            <p ><b><font size=2>16</font></b></p> </td> </tr></table>
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            <p  style='margin:0in;margin-bottom:.0001pt'><a href="#TOC34a"><u><b><font size=2>7.4.</font></b></u></a></p> </td>
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            <p ><b><font size=2>Withholding and Tax Liabilities.</font></b></p> </td>
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            <p ><b><font size=2>16</font></b></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

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

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





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<p><font size="1">Energy Conversion Devices, Inc.<br>
Executive Severance Plan</font></p>
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<td style="BORDER-TOP: black 1pt solid" valign="top" nowrap width="50%">
<p align="right"><font size="1">Table of Contents<br>
September 30, 2008</font></p>
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            <p ><font size=1>&nbsp;</font></p> </td>
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            <p ><b><font size=2>Section 8.</font></b></p> </td>
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            <p  style='margin:0in;margin-bottom:.0001pt'><a href="#TOC35a"><u><b><font size=2>Administration, Interpretation, and Modification of Plan</font></b></u></a></p> </td>
        <td width="5%" nowrap valign=top style='padding:12.0pt 0in 12.0pt 0in; '>
            <p ><b><font size=2>17</font></b></p> </td> </tr></table>
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            <p  style='margin:0in;margin-bottom:.0001pt'><a href="#TOC36a"><u><b><font size=2>8.1.</font></b></u></a></p> </td>
        <td width="79%" nowrap valign=top >
            <p ><b><font size=2>Plan Administrator.</font></b></p> </td>
        <td width="5%" nowrap valign=top >
            <p ><b><font size=2>17</font></b></p> </td> </tr></table>
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            <p  style='margin:0in;margin-bottom:.0001pt'><a href="#TOC37a"><u><b><font size=2>8.2.</font></b></u></a></p> </td>
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            <p ><b><font size=2>Powers of the Administrator.</font></b></p> </td>
        <td width="5%" nowrap valign=top >
            <p ><b><font size=2>17</font></b></p> </td> </tr></table>
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            <p  style='margin:0in;margin-bottom:.0001pt'><a href="#TOC38a"><u><b><font size=2>8.3.</font></b></u></a></p> </td>
        <td width="79%" nowrap valign=top >
            <p ><b><font size=2>Finality of Committee Determinations.</font></b></p> </td>
        <td width="5%" nowrap valign=top >
            <p ><b><font size=2>17</font></b></p> </td> </tr></table>
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            <p  style='margin:0in;margin-bottom:.0001pt'><a href="#TOC39a"><u><b><font size=2>8.4.</font></b></u></a></p> </td>
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            <p ><b><font size=2>Incapacity.</font></b></p> </td>
        <td width="5%" nowrap valign=top >
            <p ><b><font size=2>17</font></b></p> </td> </tr></table>
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            <p  style='margin:0in;margin-bottom:.0001pt'><a href="#TOC40a"><u><b><font size=2>8.5.</font></b></u></a></p> </td>
        <td width="79%" nowrap valign=top >
            <p ><b><font size=2>Amendment, Suspension, and Termination.</font></b></p> </td>
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            <p ><b><font size=2>17</font></b></p> </td> </tr></table>
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            <p  style='margin:0in;margin-bottom:.0001pt'><a href="#TOC41a"><u><b><font size=2>8.6.</font></b></u></a></p> </td>
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            <p ><b><font size=2>Power to Delegate Authority.</font></b></p> </td>
        <td width="5%" nowrap valign=top >
            <p ><b><font size=2>18</font></b></p> </td> </tr></table>
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            <p  style='margin:0in;margin-bottom:.0001pt'><a href="#TOC42a"><u><b><font size=2>8.7.</font></b></u></a></p> </td>
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            <p ><b><font size=2>Headings.</font></b></p> </td>
        <td width="5%" nowrap valign=top >
            <p ><b><font size=2>18</font></b></p> </td> </tr></table>
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            <p  style='margin:0in;margin-bottom:.0001pt'><a href="#TOC43a"><u><b><font size=2>8.8.</font></b></u></a></p> </td>
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            <p ><b><font size=2>Severability.</font></b></p> </td>
        <td width="5%" nowrap valign=top >
            <p ><b><font size=2>18</font></b></p> </td> </tr></table>
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            <p  style='margin:0in;margin-bottom:.0001pt'><a href="#TOC44a"><u><b><font size=2>8.9.</font></b></u></a></p> </td>
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            <p ><b><font size=2>Governing Law.</font></b></p> </td>
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            <p ><b><font size=2>18</font></b></p> </td> </tr></table>
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            <p  style='margin:0in;margin-bottom:.0001pt'><a href="#TOC45a"><u><b><font size=2>8.10.</font></b></u></a></p> </td>
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            <p ><b><font size=2>Complete Statement of Plan.</font></b></p> </td>
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            <p ><b><font size=2>18</font></b></p> </td> </tr></table>
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            <p ><b><font size=2>Section 9.</font></b></p> </td>
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            <p  style='margin:0in;margin-bottom:.0001pt'><a href="#TOC46a"><u><b><font size=2>Claims and Appeals</font></b></u></a></p> </td>
        <td width="5%" nowrap valign=top style='padding:12.0pt 0in 12.0pt 0in; '>
            <p ><b><font size=2>19</font></b></p> </td> </tr></table>
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            <p  style='margin:0in;margin-bottom:.0001pt'><font size=1>&nbsp;</font></p> </td>
        <td width="7%" nowrap valign=top >
            <p  style='margin:0in;margin-bottom:.0001pt'><a href="#TOC47a"><u><b><font size=2>9.1.</font></b></u></a></p> </td>
        <td width="79%" nowrap valign=top >
            <p ><b><font size=2>Application of Claims and Appeals Procedures.</font></b></p> </td>
        <td width="5%" nowrap valign=top >
            <p ><b><font size=2>19</font></b></p> </td> </tr></table>
</div>



<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="7%" nowrap valign=top >
            <p  style='margin:0in;margin-bottom:.0001pt'><font size=1>&nbsp;</font></p> </td>
        <td width="7%" nowrap valign=top >
            <p  style='margin:0in;margin-bottom:.0001pt'><a href="#TOC48a"><u><b><font size=2>9.2.</font></b></u></a></p> </td>
        <td width="79%" nowrap valign=top >
            <p ><b><font size=2>Initial Claims.</font></b></p> </td>
        <td width="5%" nowrap valign=top >
            <p ><b><font size=2>19</font></b></p> </td> </tr></table>
</div>



<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="7%" nowrap valign=top >
            <p  style='margin:0in;margin-bottom:.0001pt'><font size=1>&nbsp;</font></p> </td>
        <td width="7%" nowrap valign=top >
            <p  style='margin:0in;margin-bottom:.0001pt'><a href="#TOC49a"><u><b><font size=2>9.3.</font></b></u></a></p> </td>
        <td width="79%" nowrap valign=top >
            <p ><b><font size=2>Appeals.</font></b></p> </td>
        <td width="5%" nowrap valign=top >
            <p ><b><font size=2>20</font></b></p> </td> </tr></table>
</div>



<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="7%" nowrap valign=top >
            <p  style='margin:0in;margin-bottom:.0001pt'><font size=1>&nbsp;</font></p> </td>
        <td width="7%" nowrap valign=top >
            <p  style='margin:0in;margin-bottom:.0001pt'><a href="#TOC50a"><u><b><font size=2>9.4.</font></b></u></a></p> </td>
        <td width="79%" nowrap valign=top >
            <p ><b><font size=2>Other Rules and Rights Regarding Claims and Appeals.</font></b></p> </td>
        <td width="5%" nowrap valign=top >
            <p ><b><font size=2>21</font></b></p> </td> </tr></table>
</div>



<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="7%" nowrap valign=top >
            <p  style='margin:0in;margin-bottom:.0001pt'><font size=1>&nbsp;</font></p> </td>
        <td width="7%" nowrap valign=top >
            <p  style='margin:0in;margin-bottom:.0001pt'><a href="#TOC51a"><u><b><font size=2>9.5.</font></b></u></a></p> </td>
        <td width="79%" nowrap valign=top >
            <p ><b><font size=2>Interpretation.</font></b></p> </td>
        <td width="5%" nowrap valign=top >
            <p ><b><font size=2>21</font></b></p> </td> </tr></table>
</div>

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

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

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

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

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

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

<div align="left">
<table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="98%" border="0">
<tr>
<td style="BORDER-TOP: black 1pt solid" valign="top" nowrap width="50%">
<p><font size="1">Energy Conversion Devices, Inc.<br>
Executive Severance Plan</font></p>
</td>

<td style="BORDER-TOP: black 1pt solid" valign="top" nowrap width="50%">
<p align="right"><font size="1">Table of Contents<br>
September 30, 2008</font></p>
</td>
</tr>
</table>
</div>
<!-- EEDocs PBStart-->

<p style="PAGE-BREAK-BEFORE: always"></p>
<PAGE><!-- EEDocs PBEnd-->

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 18pt; TEXT-ALIGN: center"><b><font size="2"><a name="TOC2a"></a>SECTION 1.</font></b><font size="1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><b><font size="2">INTRODUCTION</font></b></p>
<a name="toc3a"></a>&nbsp;

<div align="left">
<table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="132" border="0">
<tr>
<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" nowrap width="48">
<p><font size="2">1.1.</font></p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" nowrap width="84">
<p><b><font size="2">Purpose</font></b><font size="2">.</font></p>
</td>
</tr>
</table>
</div>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0.5in; TEXT-ALIGN: left"><font size="2">The purpose of the Plan is to ensure that the Company will have the continued dedication of key executives of the Company by providing severance protection to selected individuals. The Plan is an unfunded welfare plan maintained primarily for the purpose of providing severance benefits to a select group of management and key management employees.</font></p>
<a name="toc4a"></a>&nbsp;

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<table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="171" border="0">
<tr>
<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" nowrap width="48">
<p><font size="2">1.2.</font></p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" nowrap width="123">
<p><b><font size="2">Effective Date</font></b><font size="2">.</font></p>
</td>
</tr>
</table>
</div>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0.5in; TEXT-ALIGN: left"><font size="2">The Plan is effective as of July 24, 2007. This restatement includes amendments through September 30, 2008. However, no amendment to the Plan made after July 24, 2007, and before July 28, 2008, is effective with respect to an individual who is a Participant before July 28, 2008, unless such Participant consents to such amendment.</font></p>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in; TEXT-ALIGN: left">&nbsp;</p>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"><a name="toc5a"></a></p>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

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<tr>
<td style="BORDER-TOP: black 1pt solid" valign="top" nowrap width="50%">
<p><font size="1">Energy Conversion Devices, Inc.<br>
Executive Severance Plan</font></p>
</td>

<td style="BORDER-TOP: black 1pt solid" valign="top" nowrap width="50%">
<p align="right"><font size="1">Page 1<br>
September 30, 2008</font></p>
</td>
</tr>
</table>
</div>
<!-- EEDocs PBStart-->

<p style="PAGE-BREAK-BEFORE: always"></p>
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<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 18pt; TEXT-ALIGN: center"><b><font size="2">SECTION 2.</font></b><font size="1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><b><font size="2">DEFINITIONS AND CONSTRUCTION</font></b></p>
<a name="toc6a"></a>&nbsp;

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<table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="149" border="0">
<tr>
<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" nowrap width="48">
<p><font size="2">2.1.</font></p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" nowrap width="101">
<p><b><font size="2">Definitions</font></b><font size="2">.</font></p>
</td>
</tr>
</table>
</div>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0.5in; TEXT-ALIGN: left"><font size="2">When used in capitalized form in the Plan, the following words and phrases have the following meanings, unless the context clearly indicates that a different meaning is intended:</font></p>

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<table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" border="0">
<tr>
<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" width="48">
<p style="MARGIN-LEFT: 0in; TEXT-INDENT: 0in">&nbsp;</p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" width="48">
<p><font size="2">(a)</font></p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top">
<p><i><b><font size="2">&ldquo;Across the Board Change&rdquo;</font></b></i><b><font size="2">means any change affecting more than fifty percent (50%) of the Company&rsquo;s employees.</font></b></p>
</td>
</tr>
</table>
</div>

<div align="left">
<table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" border="0">
<tr>
<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" width="48">
<p style="MARGIN-LEFT: 0in; TEXT-INDENT: 0in">&nbsp;</p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" width="48">
<p><font size="2">(b)</font></p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top">
<p><i><b><font size="2">&ldquo;Administrative Committee&rdquo;</font></b></i> <font size="2">means the Compensation Committee or such other Committee or person as the Board of Directors designates.</font></p>
</td>
</tr>
</table>
</div>

<div align="left">
<table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" border="0">
<tr>
<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" width="48">
<p style="MARGIN-LEFT: 0in; TEXT-INDENT: 0in">&nbsp;</p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" width="48">
<p><font size="2">(c)</font></p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top">
<p><i><b><font size="2">&ldquo;Board of Directors&rdquo;</font></b></i> <font size="2">means the Board of Directors of the Company.</font></p>
</td>
</tr>
</table>
</div>

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<table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" border="0">
<tr>
<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" width="48">
<p style="MARGIN-LEFT: 0in; TEXT-INDENT: 0in">&nbsp;</p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" width="48">
<p><font size="2">(d)</font></p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top">
<p><i><b><font size="2">&ldquo;Cause&rdquo;</font></b></i> <font size="2">has the meaning provided in Section 4.6(c).</font></p>
</td>
</tr>
</table>
</div>

<div align="left">
<table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" border="0">
<tr>
<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" width="48">
<p style="MARGIN-LEFT: 0in; TEXT-INDENT: 0in">&nbsp;</p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" width="48">
<p><font size="2">(e)</font></p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top">
<p><i><b><font size="2">&ldquo;CEO&rdquo;</font></b></i> <font size="2">means the Chief Executive Officer of the Company.</font></p>
</td>
</tr>
</table>
</div>

<div align="left">
<table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" border="0">
<tr>
<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" width="48">
<p style="MARGIN-LEFT: 0in; TEXT-INDENT: 0in">&nbsp;</p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" width="48">
<p><font size="2">(f)</font></p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top">
<p><i><b><font size="2">&ldquo;Change in Control&rdquo;</font></b></i> <font size="2">means a Change in Control of the Company as defined in the Energy Conversion Devices, Inc. 2006 Stock Incentive Plan.</font></p>
</td>
</tr>
</table>
</div>

<div align="left">
<table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" border="0">
<tr>
<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" width="48">
<p style="MARGIN-LEFT: 0in; TEXT-INDENT: 0in">&nbsp;</p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" width="48">
<p><font size="2">(g)</font></p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top">
<p><i><b><font size="2">&ldquo;Code&rdquo;</font></b></i> <font size="2">means the Internal Revenue Code of 1986, as amended.</font></p>
</td>
</tr>
</table>
</div>

<div align="left">
<table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" border="0">
<tr>
<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" width="48">
<p style="MARGIN-LEFT: 0in; TEXT-INDENT: 0in">&nbsp;</p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" width="48">
<p><font size="2">(h)</font></p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top">
<p><i><b><font size="2">&ldquo;Company&rdquo;</font></b></i> <font size="2">means Energy Conversion Devices, Inc., and any successor to Energy Conversion Devices, Inc. Employment with the Company includes employment with any corporation, partnership, or other organization that would, if applicable, be aggregated with the Company under sections 414(b) and (c) of the Code.</font></p>
</td>
</tr>
</table>
</div>

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<table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" border="0">
<tr>
<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" width="48">
<p style="MARGIN-LEFT: 0in; TEXT-INDENT: 0in">&nbsp;</p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" width="48">
<p><font size="2">(i)</font></p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top">
<p><i><b><font size="2">&ldquo;Compensation Committee&rdquo;</font></b></i> <font size="2">means the Compensation Committee of the Board of Directors.</font></p>
</td>
</tr>
</table>
</div>

<div align="left">
<table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" border="0">
<tr>
<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" width="48">
<p style="MARGIN-LEFT: 0in; TEXT-INDENT: 0in">&nbsp;</p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" width="48">
<p><font size="2">(j)</font></p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top">
<p><i><b><font size="2">&ldquo;Effective Date&rdquo;</font></b></i> <font size="2">means July 24, 2007.</font></p>
</td>
</tr>
</table>
</div>

<div align="left">
<table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" border="0">
<tr>
<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" width="48">
<p style="MARGIN-LEFT: 0in; TEXT-INDENT: 0in">&nbsp;</p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" width="48">
<p><font size="2">(k)</font></p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top">
<p><i><b><font size="2">&ldquo;Eligible Executive&rdquo;</font></b></i> <font size="2">means an employee of the Company who is designated by the Administrative Committee, in its discretion, to be eligible to participate in the Plan.</font></p>
</td>
</tr>
</table>
</div>

<div align="left">
<table style="MARGIN-LEFT: 0pt; BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" border="0">
<tr>
<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" width="48">
<p style="MARGIN-LEFT: 0in; TEXT-INDENT: 0in">&nbsp;</p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" width="48">
<p><font size="2">(l)</font></p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top">
<p><i><b><font size="2">&ldquo;ERISA&rdquo;</font></b></i> <font size="2">means the Employee Retirement Income Security Act of 1974, as amended.</font></p>
</td>
</tr>
</table>
</div>

<div align="left">
<table style="MARGIN-LEFT: 0pt; BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" border="0">
<tr>
<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" width="48">
<p style="MARGIN-LEFT: 0in; TEXT-INDENT: 0in">&nbsp;</p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" width="48">
<p><font size="2">(m)</font></p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top">
<p><i><b><font size="2">&ldquo;Excise Tax&rdquo;</font></b></i> <font size="2">has the meaning provided in Section 4.5.</font></p>
</td>
</tr>
</table>
</div>

<div align="left">
<table style="MARGIN-LEFT: 0pt; BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" border="0">
<tr>
<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" width="48">
<p style="MARGIN-LEFT: 0in; TEXT-INDENT: 0in">&nbsp;</p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" width="48">
<p><font size="2">(n)</font></p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top">
<p><i><b><font size="2">&ldquo;Good Reason&rdquo;</font></b></i> <font size="2">has the meaning provided in Section 4.6(b).</font></p>
</td>
</tr>
</table>
</div>

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<table style="MARGIN-LEFT: 0pt; BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" border="0">
<tr>
<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" width="48">
<p style="MARGIN-LEFT: 0in; TEXT-INDENT: 0in">&nbsp;</p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" width="48">
<p><font size="2">(o)</font></p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top">
<p><i><b><font size="2">&ldquo;Gross-Up Payment&rdquo;</font></b></i> <font size="2">has the meaning provided in Section 4.5.</font></p>
</td>
</tr>
</table>
</div>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

<div align="left">
<table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="98%" border="0">
<tr>
<td style="BORDER-TOP: black 1pt solid" valign="top" nowrap width="50%">
<p><font size="1">Energy Conversion Devices, Inc.<br>
Executive Severance Plan</font></p>
</td>

<td style="BORDER-TOP: black 1pt solid" valign="top" nowrap width="50%">
<p align="right"><font size="1">Page 2<br>
September 30, 2008</font></p>
</td>
</tr>
</table>
</div>
<!-- EEDocs PBStart-->

<p style="PAGE-BREAK-BEFORE: always"></p>
<PAGE><!-- EEDocs PBEnd-->

<div align="left">
<table style="MARGIN-LEFT: 0pt; BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" border="0">
<tr>
<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" width="48">
<p style="MARGIN-LEFT: 0in; TEXT-INDENT: 0in">&nbsp;</p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" width="48">
<p><font size="2">(p)</font></p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top">
<p><i><b><font size="2">&ldquo;Participant&rdquo;</font></b></i> <font size="2">means an Eligible Executive who is eligible to participate in the Plan under Section 2.</font></p>
</td>
</tr>
</table>
</div>

<div align="left">
<table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" border="0">
<tr>
<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" width="48">
<p style="MARGIN-LEFT: 0in; TEXT-INDENT: 0in">&nbsp;</p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" width="48">
<p><font size="2">(q)</font></p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top">
<p><i><b><font size="2">&ldquo;Participation Agreement&rdquo;</font></b></i> <font size="2">has the meaning provided in Section 3.2.</font></p>
</td>
</tr>
</table>
</div>

<div align="left">
<table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" border="0">
<tr>
<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" width="48">
<p style="MARGIN-LEFT: 0in; TEXT-INDENT: 0in">&nbsp;</p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" width="48">
<p><font size="2">(r)</font></p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top">
<p><i><b><font size="2">&ldquo;Plan&rdquo;</font></b></i> <font size="2">means the Energy Conversion Devices, Inc. Executive Severance Plan as set forth in this document.</font></p>
</td>
</tr>
</table>
</div>

<div align="left">
<table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" border="0">
<tr>
<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" width="48">
<p style="MARGIN-LEFT: 0in; TEXT-INDENT: 0in">&nbsp;</p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" width="48">
<p><font size="2">(s)</font></p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top">
<p><i><b><font size="2">&ldquo;Qualifying Termination&rdquo;</font></b></i> <font size="2">has the meaning provided in Section 4.6</font></p>
</td>
</tr>
</table>
</div>

<div align="left">
<table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" border="0">
<tr>
<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" width="48">
<p style="MARGIN-LEFT: 0in; TEXT-INDENT: 0in">&nbsp;</p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" width="48">
<p><font size="2">(t)</font></p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top">
<p><i><b><font size="2">&ldquo;Section&rdquo;</font></b></i> <font size="2">means a section of this Plan and any subsections of that section.</font></p>
</td>
</tr>
</table>
</div>

<div align="left">
<table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" border="0">
<tr>
<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" width="48">
<p style="MARGIN-LEFT: 0in; TEXT-INDENT: 0in">&nbsp;</p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" width="48">
<p><font size="2">(u)</font></p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top">
<p><i><b><font size="2">&ldquo;Section 409A&rdquo;</font></b></i><b><font size="2">means section 409A of the Code.</font></b></p>
</td>
</tr>
</table>
</div>

<div align="left">
<table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" border="0">
<tr>
<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" width="48">
<p style="MARGIN-LEFT: 0in; TEXT-INDENT: 0in">&nbsp;</p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" width="48">
<p><font size="2">(v)</font></p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top">
<p><i><b><font size="2">&ldquo;Severance Benefit&rdquo;</font></b></i> <font size="2">has the meaning provided in Section 4.1.</font></p>
</td>
</tr>
</table>
</div>

<div align="left">
<table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" border="0">
<tr>
<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" width="48">
<p style="MARGIN-LEFT: 0in; TEXT-INDENT: 0in">&nbsp;</p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" width="48">
<p><font size="2">(w)</font></p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top">
<p><i><b><font size="2">&ldquo;Severance Coverage Period&rdquo;</font></b></i><b><font size="2">is, with respect to a Participant, the period of severance specified in the Participant&rsquo;s Participation Agreement.</font></b></p>
</td>
</tr>
</table>
</div>
<a name="toc7a"></a>&nbsp;

<div align="left">
<table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="213" border="0">
<tr>
<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" nowrap width="48">
<p><font size="2">2.2.</font></p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" nowrap width="165">
<p><b><font size="2">Gender and Number</font></b><font size="2">.</font></p>
</td>
</tr>
</table>
</div>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0.5in; TEXT-ALIGN: left"><font size="2">Words used in the masculine gender in the Plan are intended to include the feminine and neuter genders, where appropriate. Words used in the singular form in the Plan are intended to include the plural form, where appropriate, and vice versa.</font></p>
<a name="toc8a"></a>&nbsp;

<div align="left">
<table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="159" border="0">
<tr>
<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" nowrap width="48">
<p><font size="2">2.3.</font></p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" nowrap width="111">
<p><b><font size="2">Section 409A</font></b></p>
</td>
</tr>
</table>
</div>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0.5in; TEXT-ALIGN: left"><font size="2">Payments under the Plan are intended to be exempt from, or comply with, Section 409A, and the Plan will be interpreted to achieve this result. However, in no event is the Company responsible for any tax or penalty owed by a Participant with respect to the payments under this Plan, except as provided in Section 4.5 (relating to Gross-Up Payments).</font></p>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"><a name="toc9a"></a>&nbsp;</p>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

<div align="left">
<table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="98%" border="0">
<tr>
<td style="BORDER-TOP: black 1pt solid" valign="top" nowrap width="50%">
<p><font size="1">Energy Conversion Devices, Inc.<br>
Executive Severance Plan</font></p>
</td>

<td style="BORDER-TOP: black 1pt solid" valign="top" nowrap width="50%">
<p align="right"><font size="1">Page 3<br>
September 30, 2008</font></p>
</td>
</tr>
</table>
</div>
<!-- EEDocs PBStart-->

<p style="PAGE-BREAK-BEFORE: always"></p>
<PAGE><!-- EEDocs PBEnd-->

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 18pt; TEXT-ALIGN: center"><b><font size="2">SECTION 3.</font></b><font size="1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><b><font size="2">PARTICIPATION BY ELIGIBLE EXECUTIVES</font></b></p>
<a name="toc10a"></a>&nbsp;

<div align="left">
<table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="139" border="0">
<tr>
<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" nowrap width="48">
<p><font size="2">3.1.</font></p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" nowrap width="91">
<p><b><font size="2">Generally</font></b><font size="2">.</font></p>
</td>
</tr>
</table>
</div>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0.5in; TEXT-ALIGN: left"><font size="2">An employee of the Company becomes eligible to participate in the Plan upon the later of (a) the date on which the Administrative Committee designates the employee as an Eligible Executive and (b)&nbsp;the date on which the Company and the employee execute a Participation Agreement in accordance with Section 3.2.</font></p>
<a name="toc11a"></a>&nbsp;

<div align="left">
<table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="309" border="0">
<tr>
<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" nowrap width="48">
<p><font size="2">3.2.</font></p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" nowrap width="261">
<p><b><font size="2">Participation Agreement Required</font></b><font size="2">.</font></p>
</td>
</tr>
</table>
</div>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0.5in; TEXT-ALIGN: left"><font size="2">No employee will be eligible to receive a benefit under this Plan unless the employee and the Company execute a Participation Agreement containing such terms as shall be determined by the Administrative Committee. The executed Participation Agreement will constitute an agreement between the Company and the employee that binds both of them to the terms of the Plan and will bind their
heirs, executors, administrators, successors, and assigns, both present and future.</font></p>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"><a name="toc12a"></a>&nbsp;</p>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

<div align="left">
<table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="98%" border="0">
<tr>
<td style="BORDER-TOP: black 1pt solid" valign="top" nowrap width="50%">
<p><font size="1">Energy Conversion Devices, Inc.<br>
Executive Severance Plan</font></p>
</td>

<td style="BORDER-TOP: black 1pt solid" valign="top" nowrap width="50%">
<p align="right"><font size="1">Page 4<br>
September 30, 2008</font></p>
</td>
</tr>
</table>
</div>
<!-- EEDocs PBStart-->

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<PAGE><!-- EEDocs PBEnd-->

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 18pt; TEXT-ALIGN: center"><b><font size="2">SECTION 4.</font></b><font size="1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><b><font size="2">SEVERANCE BENEFITS</font></b></p>
<a name="toc13a"></a>&nbsp;

<div align="left">
<table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="251" border="0">
<tr>
<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" nowrap width="48">
<p><font size="2">4.1.</font></p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" nowrap width="203">
<p><b><font size="2">Basic Severance Benefits</font></b><font size="2">.</font></p>
</td>
</tr>
</table>
</div>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0.5in; TEXT-ALIGN: left"><font size="2">A Participant who has a Qualifying Termination is entitled to a Severance Benefit in the amount described in subsection (a), which is paid in the time and form specified in subsection (b), and is conditioned upon the Participant&rsquo;s timely execution of a release as provided in Section 6.</font></p>

<div align="left">
<table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" border="0">
<tr>
<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" width="48">
<p style="MARGIN-LEFT: 0in; TEXT-INDENT: 0in">&nbsp;</p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" width="48">
<p><font size="2">(a)</font></p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top">
<p><u><font size="2">Amount</font></u><font size="2">. The Participant&rsquo;s Severance Benefit will include the Participant&rsquo;s base salary and bonus award as follows&mdash;</font></p>
</td>
</tr>
</table>
</div>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 1in; TEXT-ALIGN: left"><font size="2">(1)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><i><font size="2">Base Salary.</font></i> <font size="2">The Participant&rsquo;s Severance Benefit includes the Participant&rsquo;s base salary (at the rate in effect immediately prior to the Participant&rsquo;s Qualifying Termination, or if greater, the rate in effect at any time within 180 days prior to the Participant&rsquo;s
Qualifying Termination) for the Participant&rsquo;s Severance Coverage Period.</font></p>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 1in; TEXT-ALIGN: left"><font size="2">(2)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><i><font size="2">Bonus Award.</font></i> <font size="2">If the threshold is satisfied for bonus eligibility under the Company&rsquo;s annual cash incentive plan for the Company&rsquo;s fiscal year in which the Qualifying Termination occurs, the Participant&rsquo;s Severance Benefit will include the following bonus
award&mdash;</font></p>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 1.5in; TEXT-ALIGN: left"><font size="2">(A)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a pro-rata portion of the target incentive under the Company&rsquo;s annual cash incentive plan for the measurement period during which the Qualifying Termination occurs, which is equal to the target incentive for the period multiplied by a fraction, the numerator of which is the number of complete calendar months that elapsed from the
beginning of the incentive measurement period until the Participant&rsquo;s Qualifying Termination, and the denominator of which is the total number of complete calendar months in the incentive measurement period; and</font></p>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 1.5in; TEXT-ALIGN: left"><font size="2">(B)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;an amount equal to the target incentive for the measurement period in which the Qualifying Termination occurs multiplied by a fraction, the numerator of which is the number of complete calendar months in the Severance Coverage Period, and the denominator of which is the total number of complete calendar months in the incentive measurement
period.</font></p>

<div align="left">
<table style="MARGIN-LEFT: 0pt; BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" border="0">
<tr>
<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" width="48">
<p style="MARGIN-LEFT: 0in; TEXT-INDENT: 0in">&nbsp;</p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" width="48">
<p><font size="2">(b)</font></p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top">
<p><u><font size="2">Time and Form of Payment</font></u><font size="2">. If a Participant is entitled to a Severance Benefit, the Severance Benefit will be paid as follows&mdash;</font></p>
</td>
</tr>
</table>
</div>

<div align="left">
<table style="MARGIN-LEFT: 0pt; BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" border="0">
<tr>
<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" width="96">
<p style="MARGIN-LEFT: 0in">&nbsp;</p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" width="48">
<p><font size="2">(1)</font></p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top">
<p><i><font size="2">In General</font></i><font size="2">. Except as otherwise provided in paragraph (2) or (3), below, (A)&nbsp;the base salary portion of a Participant&rsquo;s Severance Benefit will be paid during the Severance Coverage Period according to the Company&rsquo;s usual payroll practices, except that payments otherwise to be made before 60th day following the Participant&rsquo;s Qualifying Termination date will be paid on the 60th day following the
Participant&rsquo;s Qualifying Termination date, and (B) the bonus award portion of the Participant&rsquo;s Severance Benefit will be paid after the end of the Company&rsquo;s fiscal year in which the</font></p>
</td>
</tr>
</table>
</div>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 1.5in; TEXT-ALIGN: left">&nbsp;</p>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

<div align="left">
<table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="98%" border="0">
<tr>
<td style="BORDER-TOP: black 1pt solid" valign="top" nowrap width="50%">
<p><font size="1">Energy Conversion Devices, Inc.<br>
Executive Severance Plan</font></p>
</td>

<td style="BORDER-TOP: black 1pt solid" valign="top" nowrap width="50%">
<p align="right"><font size="1">Page 5<br>
September 30, 2008</font></p>
</td>
</tr>
</table>
</div>
<!-- EEDocs PBStart-->

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<PAGE><!-- EEDocs PBEnd-->

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 1.5in; TEXT-ALIGN: left"><font size="2">Qualifying Termination occurs and on or before December 31 following the end of such fiscal year.</font></p>

<div align="left">
<table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" border="0">
<tr>
<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" width="96">
<p style="MARGIN-LEFT: 0in">&nbsp;</p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" width="48">
<p><font size="2">(2)</font></p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top">
<p><i><font size="2">Qualifying Termination Following a Change in Control</font></i><font size="2">. If the Participant&rsquo;s Qualifying Termination occurs in anticipation of, or within one year after, a Change in Control, and subject to paragraph (3), below, the entire Severance Benefit will be paid in the form of a lump sum on the 60th day following the Participant&rsquo;s Qualifying Termination date.</font></p>
</td>
</tr>
</table>
</div>

<div align="left">
<table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" border="0">
<tr>
<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" width="96">
<p style="MARGIN-LEFT: 0in">&nbsp;</p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" width="48">
<p><font size="2">(3)</font></p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top">
<p><i><font size="2">Time of Payment under Section 409A.</font></i> <font size="2">To comply with Section 409A&mdash;</font></p>
</td>
</tr>
</table>
</div>

<div align="left">
<table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" border="0">
<tr>
<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" width="144">
<p style="MARGIN-LEFT: 0in">&nbsp;</p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" width="48">
<p><font size="2">(A)</font></p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top">
<p><font size="2">The portion of the Severance Benefit that is not subject to Section 409A is a separate payment, for purposes of Section 409A, from the portion of the Severance Benefit, if any, that is subject to Section 409A. For the avoidance of doubt, Section 409A does not cover the portion of the Severance Benefit equal to (i) the first two and one-half months of base salary, plus (ii) if the Participant&rsquo;s Severance Benefit is paid solely on account of an
&ldquo;involuntary separation from service&rdquo; under Treas. Reg. section 1.409A-1(n), the remaining portion of the Severance Benefit up to the lesser of two times the Participant&rsquo;s annualized compensation (as determined under Section 409A) or two times the Code section 401(a)(17) limit for the year of the Participant&rsquo;s separation from service. The amount in clause (ii) in the previous sentence is limited to payments that must be paid by December 31 of
the second calendar year following the calendar year of the Participant&rsquo;s separation from service.</font></p>
</td>
</tr>
</table>
</div>

<div align="left">
<table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" border="0">
<tr>
<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" width="144">
<p style="MARGIN-LEFT: 0in">&nbsp;</p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" width="48">
<p><font size="2">(B)</font></p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top">
<p><font size="2">Any payment under the Plan that is subject to Section 409A and that is contingent on a termination of employment is contingent on a &ldquo;separation from service&rdquo; within the meaning of Section 409A.</font></p>
</td>
</tr>
</table>
</div>

<div align="left">
<table style="MARGIN-LEFT: 0pt; BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" border="0">
<tr>
<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" width="144">
<p style="MARGIN-LEFT: 0in">&nbsp;</p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" width="48">
<p><font size="2">(C)</font></p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top">
<p><font size="2">If, upon separation from service, the Participant is a &ldquo;specified employee&rdquo; within the meaning of Section 409A, any payment under the Plan that is subject to Section 409A and would otherwise be paid within six months after the Participant&rsquo;s separation from service will instead be paid in the seventh month following the Participant&rsquo;s separation from service.</font></p>
</td>
</tr>
</table>
</div>

<div align="left">
<table style="MARGIN-LEFT: 0pt; BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" border="0">
<tr>
<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" width="144">
<p style="MARGIN-LEFT: 0in">&nbsp;</p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" width="48">
<p><font size="2">(D)</font></p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top">
<p><font size="2">If any portion of the Severance Benefit is subject to Section 409A, the time of payment with respect to that portion of the Severance Benefit will be determined without regard to paragraph (2) unless the Change in Control constitutes a &ldquo;change in control&rdquo; as defined under Section 409A and the separation from service occurs no later than two years after the Change in Control.</font></p>
</td>
</tr>
</table>
</div>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"><a name="toc14a"></a>&nbsp;</p>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

<div align="left">
<table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="98%" border="0">
<tr>
<td style="BORDER-TOP: black 1pt solid" valign="top" nowrap width="50%">
<p><font size="1">Energy Conversion Devices, Inc.<br>
Executive Severance Plan</font></p>
</td>

<td style="BORDER-TOP: black 1pt solid" valign="top" nowrap width="50%">
<p align="right"><font size="1">Page 6<br>
September 30, 2008</font></p>
</td>
</tr>
</table>
</div>
<!-- EEDocs PBStart-->

<p style="PAGE-BREAK-BEFORE: always"></p>
<PAGE><!-- EEDocs PBEnd-->

<div align="left">
<table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="268" border="0">
<tr>
<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" nowrap width="48">
<p><font size="2">4.2.</font></p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" nowrap width="220">
<p><b><font size="2">Medical and Dental Benefits</font></b><font size="2">.</font></p>
</td>
</tr>
</table>
</div>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0.5in; TEXT-ALIGN: left"><font size="2">If the Participant has a Qualifying Termination and timely executes a release as provided in Section 6, the Company will provide the Participant with medical and dental benefits as follows&mdash;</font></p>

<div align="left">
<table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" border="0">
<tr>
<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" width="48">
<p style="MARGIN-LEFT: 0in; TEXT-INDENT: 0in">&nbsp;</p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" width="48">
<p><font size="2">(a)</font></p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top">
<p><u><font size="2">Amount</font></u><i><font size="2">.</font></i> <font size="2">During the Severance Coverage Period (but not for more than 18 months), the Company will pay a portion of the Participant&rsquo;s premiums for medical and dental coverage under COBRA (and, if the Severance Coverage Period extends beyond the COBRA period, any medical and dental coverage obtained by the Participant after the COBRA period) equal to the portion of medical and dental
benefit premiums (if any) that the Company would have paid with respect to the Participant had the Participant continued employment with the Company in the same position held by the Participant at the time of his or her Qualifying Termination. Notwithstanding the previous sentence, the Company reserves the right to modify, amend, or terminate at any time any Company benefit plan to the extent permitted under the terms of the plan and applicable law.</font></p>
</td>
</tr>
</table>
</div>

<div align="left">
<table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" border="0">
<tr>
<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" width="48">
<p style="MARGIN-LEFT: 0in; TEXT-INDENT: 0in">&nbsp;</p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" width="48">
<p><font size="2">(b)</font></p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top">
<p><u><font size="2">Time of Payment</font></u><i><font size="2">.</font></i> <font size="2">Each month&rsquo;s premium will be paid in the month it is due, except that payments may be delayed pending the Participant&rsquo;s execution of a release in accordance with Section 6. For purposes of Section 409A, payments under this Section made within the COBRA coverage period are separate from payments, if any, made later.</font></p>
</td>
</tr>
</table>
</div>
<a name="toc15a"></a>&nbsp;

<div align="left">
<table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="169" border="0">
<tr>
<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" nowrap width="48">
<p><font size="2">4.3.</font></p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" nowrap width="121">
<p><b><font size="2">Equity Awards</font></b></p>
</td>
</tr>
</table>
</div>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0.5in; TEXT-ALIGN: left"><font size="2">If the Participant has a Qualifying Termination and timely executes a release as provided in Section 6, the Participant&rsquo;s awards, if any, under the Energy Conversion Devices, Inc. 2006 Stock Incentive Plan (or its successor or its predecessor) (the &ldquo;Stock Incentive Plan&rdquo;) will be treated as follows, subject to the terms of the Stock Incentive Plan:</font></p>

<div align="left">
<table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" border="0">
<tr>
<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" width="48">
<p style="MARGIN-LEFT: 0in; TEXT-INDENT: 0in">&nbsp;</p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" width="48">
<p><font size="2">(a)</font></p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top">
<p><u><font size="2">Stock Options and Stock Appreciation Rights</font></u><font size="2">. Each of the Participant&rsquo;s stock options and stock appreciation rights that is outstanding on the date of the Participant&rsquo;s Qualifying Termination shall be vested and, unless otherwise provided in the applicable award agreement, be exercisable until the six month anniversary of the Participant&rsquo;s Qualifying Termination (but no later than the earlier of the 10th
anniversary of the date the award was granted or the expiration date of the award as specified in the award agreement).</font></p>
</td>
</tr>
</table>
</div>

<div align="left">
<table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" border="0">
<tr>
<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" width="48">
<p style="MARGIN-LEFT: 0in; TEXT-INDENT: 0in">&nbsp;</p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" width="48">
<p><font size="2">(b)</font></p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top">
<p><u><font size="2">Restricted Stock Awards</font></u><font size="2">. The restrictions shall lapse, and the award shall be fully vested, with respect to each of the Participant&rsquo;s Restricted Stock Awards (as defined in the Stock Incentive Plan) that is outstanding on the date of the Participant&rsquo;s Qualifying Termination.</font></p>
</td>
</tr>
</table>
</div>

<div align="left">
<table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" border="0">
<tr>
<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" width="48">
<p style="MARGIN-LEFT: 0in; TEXT-INDENT: 0in">&nbsp;</p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" width="48">
<p><font size="2">(c)</font></p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top">
<p><font size="2">Non-Performance-Based</font> <u><font size="2">Restricted Stock Unit Awards</font></u><font size="2">. Each of the Participant&rsquo;s Restricted Stock Unit Awards (as defined in the Stock Incentive Plan) that are not based on performance measures and that are outstanding on the date of the Participant&rsquo;s Qualifying Termination shall vest on the date of the Participant&rsquo;s Qualifying Termination. Such awards shall be paid within 90 days
after the</font></p>
</td>
</tr>
</table>
</div>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 1in; TEXT-ALIGN: left">&nbsp;</p>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

<div align="left">
<table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="98%" border="0">
<tr>
<td style="BORDER-TOP: black 1pt solid" valign="top" nowrap width="50%">
<p><font size="1">Energy Conversion Devices, Inc.<br>
Executive Severance Plan</font></p>
</td>

<td style="BORDER-TOP: black 1pt solid" valign="top" nowrap width="50%">
<p align="right"><font size="1">Page 7<br>
September 30, 2008</font></p>
</td>
</tr>
</table>
</div>
<!-- EEDocs PBStart-->

<p style="PAGE-BREAK-BEFORE: always"></p>
<PAGE><!-- EEDocs PBEnd-->

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 1in; TEXT-ALIGN: left"><font size="2">Participant&rsquo;s &ldquo;separation from service&rdquo; (within the meaning of Section 409A), except that. if, upon separation from service, the Participant is a &ldquo;specified employee&rdquo; within the meaning of Section 409A, payment will instead be made in the seventh month following the Participant&rsquo;s separation from service.</font></p>

<div align="left">
<table style="MARGIN-LEFT: 0pt; BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" border="0">
<tr>
<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" width="48">
<p style="MARGIN-LEFT: 0in; TEXT-INDENT: 0in">&nbsp;</p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" width="48">
<p><font size="2">(d)</font></p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top">
<p><u><font size="2">Performance-Based Restricted Stock Unit Awards</font></u><font size="2">. A pro-rated portion of each of the Participant&rsquo;s Restricted Stock Units that are based on performance measures and that are outstanding on the date of the Participant&rsquo;s Qualifying Termination shall be paid at the same time the award would have been paid if the Participant had not incurred a Qualifying Termination (subject to any provision of the award agreement
that applies on account of a change in control, as determined under such agreement). Such prorated portion shall equal the total amount that would have been paid absent the Participant&rsquo;s Qualifying Termination (if any) multiplied by a fraction, the numerator of which is the total number of full calendar months during the performance period that ended on or before the Participant&rsquo;s Qualifying Termination, and the denominator of which is the total number of
full calendar months in the performance period.</font></p>
</td>
</tr>
</table>
</div>
<a name="toc16a"></a>&nbsp;

<div align="left">
<table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="231" border="0">
<tr>
<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" nowrap width="48">
<p><font size="2">4.4.</font></p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" nowrap width="183">
<p><b><font size="2">Outplacement Services</font></b></p>
</td>
</tr>
</table>
</div>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0.5in; TEXT-ALIGN: left"><font size="2">If the Participant has a Qualifying Termination and timely executes a release as provided in Section 6, the Company will provide the Participant with reasonable outplacement services during the Severance Coverage Period, but in no event later than the end of the 18th complete calendar month after a Qualifying Termination.</font></p>
<a name="toc17a"></a>&nbsp;

<div align="left">
<table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="357" border="0">
<tr>
<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" nowrap width="48">
<p><font size="2">4.5.</font></p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" nowrap width="309">
<p><b><font size="2">Gross-Up Payment/Reduction of Benefits</font></b></p>
</td>
</tr>
</table>
</div>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0.5in; TEXT-ALIGN: left"><font size="2">Under some circumstances, payments by a company to certain individuals that are considered to be contingent upon a change in control are subject to a 20% excise tax under section 4999 of the Code (the &ldquo;Excise Tax&rdquo;). The Excise Tax could apply to payments under this Plan if the payments are considered to be contingent upon a change in control, and the payments, combined
with all other change in control payments, exceed three times the Participant&rsquo;s average pay, all as determined under the Code. If the Excise Tax applies to payments under this Plan, the Company will pay such Excise Tax as described below.</font></p>

<div align="left">
<table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" border="0">
<tr>
<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" width="48">
<p style="MARGIN-LEFT: 0in; TEXT-INDENT: 0in">&nbsp;</p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" width="48">
<p><font size="2">(a)</font></p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top">
<p><u><font size="2">Eligibility for Gross-Up</font></u><font size="2">. If any payment to a Participant made under this Plan is subject to the Excise Tax, the Participant will be eligible for a Gross-Up Payment in the amount described in subsection (c), paid at the time specified in subsection (d), except as provided in subsection (b).</font></p>
</td>
</tr>
</table>
</div>

<div align="left">
<table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" border="0">
<tr>
<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" width="48">
<p style="MARGIN-LEFT: 0in; TEXT-INDENT: 0in">&nbsp;</p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" width="48">
<p><font size="2">(b)</font></p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top">
<p><u><font size="2">Reduction of Benefits</font></u><font size="2">. Notwithstanding subsection (a), a Participant will not be entitled to receive a Gross-Up Payment under this Section if the aggregate present value of the Participant&rsquo;s &ldquo;parachute payments&rdquo; is less than or equal to 310% of his or her &ldquo;base amount&rdquo; (as determined under section 280G of the Code). In such an event, the Participant&rsquo;s benefits under this Plan will be
reduced (first by reducing the bonus portion of the Severance Benefit, then by reducing the base salary portion, from latest payments to earliest payments, of the Severance Benefit, and then by reducing other payments under the Plan) by</font></p>
</td>
</tr>
</table>
</div>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 1in; TEXT-ALIGN: left">&nbsp;</p>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

<div align="left">
<table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="98%" border="0">
<tr>
<td style="BORDER-TOP: black 1pt solid" valign="top" nowrap width="50%">
<p><font size="1">Energy Conversion Devices, Inc.<br>
Executive Severance Plan</font></p>
</td>

<td style="BORDER-TOP: black 1pt solid" valign="top" nowrap width="50%">
<p align="right"><font size="1">Page 8<br>
September 30, 2008</font></p>
</td>
</tr>
</table>
</div>
<!-- EEDocs PBStart-->

<p style="PAGE-BREAK-BEFORE: always"></p>
<PAGE><!-- EEDocs PBEnd-->

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 1in; TEXT-ALIGN: left"><font size="2">the smallest amount necessary to ensure that the benefits paid under the Plan are not subject to the Excise Tax.</font></p>

<div align="left">
<table style="MARGIN-LEFT: 0pt; BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" border="0">
<tr>
<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" width="48">
<p style="MARGIN-LEFT: 0in; TEXT-INDENT: 0in">&nbsp;</p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" width="48">
<p><font size="2">(c)</font></p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top">
<p><u><font size="2">Amount</font></u><font size="2">. If a Participant is entitled to a Gross-Up Payment, the amount of such payment will be determined as follows&mdash;</font></p>
</td>
</tr>
</table>
</div>

<div align="left">
<table style="MARGIN-LEFT: 0pt; BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" border="0">
<tr>
<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" width="96">
<p style="MARGIN-LEFT: 0in">&nbsp;</p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" width="48">
<p><font size="2">(1)</font></p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top">
<p><i><font size="2">Generally.</font></i> <font size="2">The amount of the Gross-Up Payment will equal an amount such that, after payment by the Participant of all taxes (including any interest or penalties imposed with respect to such taxes) with respect to the Gross-Up Payment, including any Excise Tax imposed upon the Gross-Up Payment, the Participant retains an amount of the Gross-Up Payment equal to the Excise Tax imposed upon the payments made under the Plan.
A nationally recognized firm of certified public accountants (the "Accounting Firm") selected by the Company will determine whether the payments under the Plan will result in an excess parachute payment that is subject to the Excise Tax. If the Accounting Firm determines that no payment under the Plan will be subject to the Excise Tax, it will, at the same time as it makes such determination, furnish the Participant with an opinion that he or she has substantial
authority not to report any Excise Tax on his/her federal, state, local income or other tax return. If it is later determined pursuant to paragraph (4) that the payments under the Plan are subject to the Excise Tax, the Gross-Up Payment will include any penalties and interest that are imposed or become due as a result of the Accounting Firm&rsquo;s initial determination that the Company&rsquo;s Payments were not subject to the Excise Tax.</font></p>
</td>
</tr>
</table>
</div>

<div align="left">
<table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" border="0">
<tr>
<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" width="96">
<p style="MARGIN-LEFT: 0in">&nbsp;</p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" width="48">
<p><font size="2">(2)</font></p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top">
<p><i><font size="2">Tax Rates.</font></i> <font size="2">For purposes of determining the amount of the Gross-Up Payment, the Participant will be deemed to pay (A) federal income taxes at the highest marginal rates of federal income taxation applicable to individuals in the calendar year in which the Gross-Up Payment is to be made and (B) state and local income taxes at the highest marginal rates of taxation applicable to individuals as are in effect in the state and
locality of the Participant&rsquo;s residence in the calendar year in which the Gross-Up Payment is to be made, net the maximum reduction in federal income taxes that can be obtained from deduction of such state and local taxes, taking into account any limitations applicable to individuals subject to federal income tax at the highest marginal rates.</font></p>
</td>
</tr>
</table>
</div>

<div align="left">
<table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" border="0">
<tr>
<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" width="96">
<p style="MARGIN-LEFT: 0in">&nbsp;</p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" width="48">
<p><font size="2">(3)</font></p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top">
<p><i><font size="2">Adjustments to Gross-Up Payments</font></i><font size="2">. If it is established pursuant to a final determination of a court or an Internal Revenue Service proceeding or written opinion of counsel that the Excise Tax is less than the amount previously taken into account hereunder, the Participant will repay the Company, within 30 days of his or her receipt of notice of such final determination or opinion, the portion of the Gross-Up Payment
attributable to such reduction (plus the portion of the Gross-Up Payment attributable to the Excise Tax imposed on the Gross-Up Payment being repaid by the Participant if such repayment results in a reduction in Excise Tax) plus any interest received by the Participant on the amount of such repayment, provided that if any such amount has been paid by the</font></p>
</td>
</tr>
</table>
</div>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 1.5in; TEXT-ALIGN: left">&nbsp;</p>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

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<tr>
<td style="BORDER-TOP: black 1pt solid" valign="top" nowrap width="50%">
<p><font size="1">Energy Conversion Devices, Inc.<br>
Executive Severance Plan</font></p>
</td>

<td style="BORDER-TOP: black 1pt solid" valign="top" nowrap width="50%">
<p align="right"><font size="1">Page&nbsp;9<br>
September 30, 2008</font></p>
</td>
</tr>
</table>
</div>
<!-- EEDocs PBStart-->

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<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 1.5in; TEXT-ALIGN: left"><font size="2">Participant as an Excise Tax or other tax, he or she will cooperate with the Company in seeking a refund of any tax overpayments, and he or she will not be required to make repayments to the Company until the overpaid taxes and interest thereon are refunded to him or her.</font></p>

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<tr>
<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" width="96">
<p style="MARGIN-LEFT: 0in">&nbsp;</p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" width="48">
<p><font size="2">(4)</font></p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top">
<p><i><font size="2">Additional Gross-Up Payment.</font></i> <font size="2">If it is established pursuant to a final determination of a court or an Internal Revenue Service proceeding or the written opinion of counsel that the Excise Tax exceeds the amount taken into account hereunder (including by reason of any payment the existence or amount of which cannot be determined at the time of the Gross-Up Payment), the Company will make an additional Gross-Up Payment in
respect of such excess (including any tax penalties imposed or interest due because of the underpayment) 30 days after the Company&rsquo;s receipt of notice of such final determination or opinion; provided that the Participant notifies the Company of the potential underpayment within 30 days of the Participant&rsquo;s initial receipt from the Internal Revenue Service of a dispute or inquiry regarding the amount of the Excise Tax.</font></p>
</td>
</tr>
</table>
</div>

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<table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" border="0">
<tr>
<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" width="48">
<p style="MARGIN-LEFT: 0in; TEXT-INDENT: 0in">&nbsp;</p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" width="48">
<p><font size="2">(d)</font></p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top">
<p><u><font size="2">Time and Form of Payment</font></u><font size="2">.</font></p>
</td>
</tr>
</table>
</div>

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<table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" border="0">
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<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" width="96">
<p style="MARGIN-LEFT: 0in">&nbsp;</p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" width="48">
<p><font size="2">(1)</font></p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top">
<p><i><font size="2">Generally</font></i><font size="2">.</font></p>
</td>
</tr>
</table>
</div>

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<table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" border="0">
<tr>
<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" width="144">
<p style="MARGIN-LEFT: 0in">&nbsp;</p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" width="48">
<p><font size="2">(A)</font></p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top">
<p><font size="2">Except as provided in paragraph (C), if the Company determines that an Excise Tax will be imposed upon a Participant, the Gross-Up Payment will be paid (to the extent not required to be withheld) in a lump sum on the fifth day before the due date of the Excise Tax.</font></p>
</td>
</tr>
</table>
</div>

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<table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" border="0">
<tr>
<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" width="144">
<p style="MARGIN-LEFT: 0in">&nbsp;</p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" width="48">
<p><font size="2">(B)</font></p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top">
<p><font size="2">Except as provided in paragraph (C), if the Accounting Firm initially determines that an Excise Tax will not be imposed upon any payment under the Plan and an Excise Tax is subsequently imposed on a payment under the Plan pursuant to Section 4.5(c)(4), the Gross-Up Payment will be paid in a lump sum on the 60th day after the Participant&rsquo;s initial receipt of notice of such final determination or opinion; provided that no Gross-Up Payment will
be paid under this paragraph (B) if the Participant does not notify the Company of the potential underpayment within 30 days of the Participant&rsquo;s initial receipt from the Internal Revenue Service of a dispute or inquiry regarding the amount of the Excise Tax.</font></p>
</td>
</tr>
</table>
</div>

<div align="left">
<table style="MARGIN-LEFT: 0pt; BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" border="0">
<tr>
<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" width="144">
<p style="MARGIN-LEFT: 0in">&nbsp;</p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" width="48">
<p><font size="2">(C)</font></p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top">
<p><font size="2">Notwithstanding subparagraphs (A) and (B), the Gross-Up Payment will neither be paid (i) later than the end of the Participant&rsquo;s taxable year next following the Participant&rsquo;s taxable year in which the related taxes are remitted to the taxing authority, nor (ii) earlier than the date that is six months after the Participant&rsquo;s separation from service, if the Participant is a &ldquo;specified employee&rdquo; upon separation from
service (as determined under Section 409A).</font></p>
</td>
</tr>
</table>
</div>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"><a name="toc18a"></a>&nbsp;</p>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

<div align="left">
<table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="98%" border="0">
<tr>
<td style="BORDER-TOP: black 1pt solid" valign="top" nowrap width="50%">
<p><font size="1">Energy Conversion Devices, Inc.<br>
Executive Severance Plan</font></p>
</td>

<td style="BORDER-TOP: black 1pt solid" valign="top" nowrap width="50%">
<p align="right"><font size="1">Page 10<br>
September 30, 2008</font></p>
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</tr>
</table>
</div>
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<div align="left">
<table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="232" border="0">
<tr>
<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" nowrap width="48">
<p><font size="2">4.6.</font></p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" nowrap width="184">
<p><b><font size="2">Qualifying Termination</font></b><font size="2">.</font></p>
</td>
</tr>
</table>
</div>

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<table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" border="0">
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<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" width="48">
<p style="MARGIN-LEFT: 0in; TEXT-INDENT: 0in">&nbsp;</p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" width="48">
<p><font size="2">(a)</font></p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top">
<p><font size="2">A Participant has a Qualifying Termination if his or her employment with the Company is terminated&mdash;</font></p>
</td>
</tr>
</table>
</div>

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<table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="331" border="0">
<tr>
<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" nowrap width="96">
<p style="MARGIN-LEFT: 0in">&nbsp;</p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" nowrap width="48">
<p><font size="2">(1)</font></p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" nowrap width="187">
<p><font size="2">for Good Reason; or</font></p>
</td>
</tr>
</table>
</div>

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<table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="592" border="0">
<tr>
<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" nowrap width="100">
<p style="MARGIN-LEFT: 0in">&nbsp;</p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" nowrap width="44">
<p><font size="2">(2)</font></p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" nowrap width="448">
<p><font size="2">involuntarily by the Company for any reason other than for Cause.</font></p>
</td>
</tr>
</table>
</div>

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<table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" border="0">
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<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" width="48">
<p style="MARGIN-LEFT: 0in; TEXT-INDENT: 0in">&nbsp;</p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" width="48">
<p><font size="2">(b)</font></p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top">
<p><i><font size="2">Good Reason</font></i><font size="2">.</font></p>
</td>
</tr>
</table>
</div>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 1in; TEXT-ALIGN: left"><font size="2">(1)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><i><font size="2">Definition.</font></i> <font size="2">&ldquo;Good Reason&rdquo; means, without the consent of the Participant, (A) any material diminution in the Participant&rsquo;s base pay; (B) any material diminution in the Participant&rsquo;s authority, duties or responsibilities; or (C) a material change in the
Participant&rsquo;s office location (which, for this purpose, means a change of more than 50 miles). However, &ldquo;Good Reason&rdquo; does not include such material diminution if the material diminution is the result of an Across the Board Change, unless the Participant&rsquo;s Qualifying Termination occurs within one year before, or within one year after, a Change in Control. For the avoidance of doubt, &ldquo;Good Reason&rdquo; does not occur solely because the Company ceases to
be publicly traded.</font></p>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 1in; TEXT-ALIGN: left"><font size="2">(2)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><i><font size="2">Notice and Cure Period</font></i><font size="2">. A Participant does not terminate for Good Reason unless (A) the Participant gives the Administrative Committee</font><font size="2">written</font><font size="2">notice within 90 days of the initial existence of the condition on which Good Reason is based, (B) the
Company does not cure the condition within 30 days of receiving such notice, and (C) the Participant terminates within one year following the initial existence of the condition.</font></p>

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<table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" border="0">
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<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" width="48">
<p style="MARGIN-LEFT: 0in; TEXT-INDENT: 0in">&nbsp;</p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" width="48">
<p><font size="2">(c)</font></p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top">
<p><i><font size="2">Cause.</font></i> <font size="2">&ldquo;Cause&rdquo; means, as determined by the Administrative Committee in its discretion, fraud, embezzlement, conviction of a felony, a material violation of the Company&rsquo;s code of conduct, a willful and continual failure after notice to substantially perform his duties (other than failure resulting from the Participant&rsquo;s incapacity due to physical or mental illness), or any other breach of duty by
the Participant resulting in material harm to the Company.</font></p>
</td>
</tr>
</table>
</div>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"><a name="toc19a"></a>&nbsp;</p>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

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<table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="98%" border="0">
<tr>
<td style="BORDER-TOP: black 1pt solid" valign="top" nowrap width="50%">
<p><font size="1">Energy Conversion Devices, Inc.<br>
Executive Severance Plan</font></p>
</td>

<td style="BORDER-TOP: black 1pt solid" valign="top" nowrap width="50%">
<p align="right"><font size="1">Page 11<br>
September 30, 2008</font></p>
</td>
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</table>
</div>
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<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 18pt; TEXT-ALIGN: center"><b><font size="2">SECTION 5.</font></b><font size="1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><b><font size="2">COVENANTS</font></b></p>
<a name="toc20a"></a>&nbsp;

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<table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="139" border="0">
<tr>
<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" nowrap width="48">
<p><font size="2">5.1.</font></p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" nowrap width="91">
<p><b><font size="2">Generally.</font></b></p>
</td>
</tr>
</table>
</div>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0.5in; TEXT-ALIGN: left"><font size="2">In consideration for the benefits provided under the Plan, each Participant will agree to the covenants set forth in this Section 5.</font></p>
<a name="toc21a"></a>&nbsp;

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<table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="184" border="0">
<tr>
<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" nowrap width="48">
<p><font size="2">5.2.</font></p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" nowrap width="136">
<p><b><font size="2">Noncompetition.</font></b></p>
</td>
</tr>
</table>
</div>

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<table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" border="0">
<tr>
<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" width="48">
<p style="MARGIN-LEFT: 0in; TEXT-INDENT: 0in">&nbsp;</p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" width="48">
<p><font size="2">(a)</font></p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top">
<p><u><font size="2">Prohibited Conduct</font></u><i><font size="2">.</font></i><b><font size="2">During the period of a Participant&rsquo;s employment with the Company, and for the Participant&rsquo;s Severance Coverage Period, the Participant will not, without the prior written consent of the CEO (or if the Participant is the CEO, without prior written consent of the Board of Directors)&mdash;</font></b></p>
</td>
</tr>
</table>
</div>

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<table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="621" border="0">
<tr>
<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" nowrap width="96">
<p style="MARGIN-LEFT: 0in">&nbsp;</p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" nowrap width="48">
<p><font size="2">(1)</font></p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" nowrap width="477">
<p><font size="2">personally engage in Competitive Activities (as defined below); or</font></p>
</td>
</tr>
</table>
</div>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 1in; TEXT-ALIGN: left"><font size="2">(2)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;work for, own, manage, operate, control, or participate in the ownership, management, operation, or control of, or provide consulting or advisory services to, any individual, partnership, firm, corporation, or institution engaged in Competitive Activities, or any company or person affiliated with such person or entity engaged in Competitive
Activities; provided that Participant&rsquo;s mere purchase or holding, for investment purposes, of securities of a publicly-traded company will not constitute &ldquo;ownership&rdquo; or &ldquo;participation in ownership&rdquo; for purposes of this paragraph so long as Participant&rsquo;s equity interest in any such company is less than 5% of its outstanding shares.</font></p>

<div align="left">
<table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" border="0">
<tr>
<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" width="48">
<p style="MARGIN-LEFT: 0in; TEXT-INDENT: 0in">&nbsp;</p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" width="48">
<p><font size="2">(b)</font></p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top">
<p><u><font size="2">Competitive Activities</font></u><i><font size="2">.</font></i><b><font size="2">&ldquo;Competitive Activities&rdquo; means business activities, for employees classified as above E5 anywhere in the world and for employees classified as E5 and E4 anywhere in North America, which, in whole or in part, are in competition with the Company and its divisions, subsidiaries, affiliates and joint ventures as of the date that employment with the Company
terminates. If the scope of the obligations contained in this Section 5.2 is determined to exceed that which may be enforceable under applicable law, the scope of these obligations will be reformed to provide for enforcement to the maximum extent permitted under applicable law. The Participant will bear the burden of proving the scope of the maximum enforceable obligations under applicable law and that the activities in which he or she has engaged do not exceed such
maximum enforceable obligations.</font></b></p>
</td>
</tr>
</table>
</div>
<a name="toc22a"></a>&nbsp;

<div align="left">
<table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="331" border="0">
<tr>
<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" nowrap width="48">
<p><font size="2">5.3.</font></p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" nowrap width="283">
<p><b><font size="2">Interference with Business Relations</font></b><font size="2">.</font></p>
</td>
</tr>
</table>
</div>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0.5in; TEXT-ALIGN: left"><font size="2">During the period of the Participant&rsquo;s employment with the Company, and for the Participant&rsquo;s Severance Coverage Period, Participant will not, without the prior written consent of the CEO (or if the Participant is the CEO, without prior written consent of the Board of Directors)&mdash;</font></p>

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<table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" border="0">
<tr>
<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" width="48">
<p style="MARGIN-LEFT: 0in; TEXT-INDENT: 0in">&nbsp;</p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" width="48">
<p><font size="2">(a)</font></p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top">
<p><font size="2">recruit or solicit any employee of the Company for employment or for retention as a consultant or service provider;</font></p>
</td>
</tr>
</table>
</div>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

<div align="left">
<table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="98%" border="0">
<tr>
<td style="BORDER-TOP: black 1pt solid" valign="top" nowrap width="50%">
<p><font size="1">Energy Conversion Devices, Inc.<br>
Executive Severance Plan</font></p>
</td>

<td style="BORDER-TOP: black 1pt solid" valign="top" nowrap width="50%">
<p align="right"><font size="1">Page 12<br>
September 30, 2008</font></p>
</td>
</tr>
</table>
</div>
<!-- EEDocs PBStart-->

<p style="PAGE-BREAK-BEFORE: always"></p>
<PAGE><!-- EEDocs PBEnd-->

<div align="left">
<table style="MARGIN-LEFT: 0pt; BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" border="0">
<tr>
<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" width="48">
<p style="MARGIN-LEFT: 0in; TEXT-INDENT: 0in">&nbsp;</p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" width="48">
<p><font size="2">(b)</font></p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top">
<p><font size="2">hire or participate (with another company or third party) in the process of hiring (other than for the Company) any person who is then an employee of the Company, or provide names or other information about Company employees to any person or business (other than the Company) under circumstances that could lead to the use of that information for purposes of recruiting or hiring;</font></p>
</td>
</tr>
</table>
</div>

<div align="left">
<table style="MARGIN-LEFT: 0pt; BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" border="0">
<tr>
<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" width="48">
<p style="MARGIN-LEFT: 0in; TEXT-INDENT: 0in">&nbsp;</p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" width="48">
<p><font size="2">(c)</font></p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top">
<p><font size="2">interfere with the relationship of the Company with any of its employees, agents, or representatives;</font></p>
</td>
</tr>
</table>
</div>

<div align="left">
<table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" border="0">
<tr>
<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" width="48">
<p style="MARGIN-LEFT: 0in; TEXT-INDENT: 0in">&nbsp;</p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" width="48">
<p><font size="2">(d)</font></p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top">
<p><font size="2">solicit or induce, or in any manner attempt to solicit or induce, any client, customer, or prospect of the Company (1) to cease being, or not to become, a customer of the Company or (2) to divert any business of such customer or prospect from the Company; or</font></p>
</td>
</tr>
</table>
</div>

<div align="left">
<table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" border="0">
<tr>
<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" width="48">
<p style="MARGIN-LEFT: 0in; TEXT-INDENT: 0in">&nbsp;</p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" width="48">
<p><font size="2">(e)</font></p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top">
<p><font size="2">otherwise interfere with, disrupt, or attempt to interfere with or disrupt, the relationship, contractual or otherwise, between the Company and any of its customers, clients, prospects, suppliers, consultants, or employees.</font></p>
</td>
</tr>
</table>
</div>
<a name="toc23a"></a>&nbsp;

<div align="left">
<table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="355" border="0">
<tr>
<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" nowrap width="48">
<p><font size="2">5.4.</font></p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" nowrap width="307">
<p><b><font size="2">Proprietary and Confidential Information</font></b><font size="2">.</font></p>
</td>
</tr>
</table>
</div>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0.5in; TEXT-ALIGN: left"><font size="2">The Participant will at all times preserve the confidentiality of all proprietary information and trade secrets of the Company, except to the extent that disclosure of such information is legally required. &ldquo;Proprietary information&rdquo; means information that has not been disclosed to the public and that is treated as confidential within the business of the Company, such as
strategic or tactical business plans; undisclosed financial data; ideas, processes, methods, techniques, systems, patented or copyrighted information, models, devices, programs, computer software, or related information; documents relating to regulatory matters and correspondence with governmental entities; undisclosed information concerning any past, pending, or threatened legal dispute; pricing and cost data; reports and analyses of business prospects; business transactions that
are contemplated or planned; research data; personnel information and data; identities of users and purchasers of the Company&rsquo;s products or services; and other confidential matters pertaining to or known by the Company, including confidential information of a third party that Participant knows or should know the Company is bound to protect.</font></p>
<a name="toc24a"></a>&nbsp;

<div align="left">
<table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="203" border="0">
<tr>
<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" nowrap width="48">
<p><font size="2">5.5.</font></p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" nowrap width="155">
<p><b><font size="2">Nondisparagement</font></b></p>
</td>
</tr>
</table>
</div>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0.5in; TEXT-ALIGN: left"><font size="2">The Participant will at no time make any derogatory, misleading or otherwise negative statement about the actions, performance or behavior of the Company or its officers, directors, employees and agents.</font></p>
<a name="toc25a"></a>&nbsp;

<div align="left">
<table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="155" border="0">
<tr>
<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" nowrap width="48">
<p><font size="2">5.6.</font></p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" nowrap width="107">
<p><b><font size="2">Cooperation</font></b></p>
</td>
</tr>
</table>
</div>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0.5in; TEXT-ALIGN: left"><font size="2">The Participant will cooperate with the Company in order to ensure an orderly transfer of his or her duties and responsibilities. In addition, the Participant will at all times, both before and after termination of employment, (a) provide reasonable cooperation in connection with any action or proceeding (or any appeal from any action or proceeding) that relates to events occurring
during the Participant&rsquo;s employment hereunder, provided that such cooperation does not materially interfere with the Executive&rsquo;s then current employment, and (b) cooperate with the Company in executing and delivering</font></p>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in; TEXT-ALIGN: left">&nbsp;</p>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

<div align="left">
<table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="98%" border="0">
<tr>
<td style="BORDER-TOP: black 1pt solid" valign="top" nowrap width="50%">
<p><font size="1">Energy Conversion Devices, Inc.<br>
Executive Severance Plan</font></p>
</td>

<td style="BORDER-TOP: black 1pt solid" valign="top" nowrap width="50%">
<p align="right"><font size="1">Page 13<br>
September 30, 2008</font></p>
</td>
</tr>
</table>
</div>
<!-- EEDocs PBStart-->

<p style="PAGE-BREAK-BEFORE: always"></p>
<PAGE><!-- EEDocs PBEnd-->

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0.5in; TEXT-ALIGN: left"><font size="2">documents requested by the Company, and taking any other actions, that are necessary or requested by the Company to assist the Company in patenting, copyrighting, or registering any programs, ideas, inventions, discoveries, patented or copyrighted material, or trademarks, and to vest title thereto in the Company.</font></p>
<a name="toc26a"></a>&nbsp;

<div align="left">
<table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="157" border="0">
<tr>
<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" nowrap width="48">
<p><font size="2">5.7.</font></p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" nowrap width="109">
<p><b><font size="2">Recoupment</font></b></p>
</td>
</tr>
</table>
</div>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0.5in; TEXT-ALIGN: left"><font size="2">If the Participant breaches any of the covenants set forth in this Section 5, the Company will have no further obligation to pay to the Participant any benefit under the Plan, and the Participant will be obligated to repay to the Company all benefits previously paid to, or on behalf of, the Participant under the Plan.</font></p>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"><a name="toc27a"></a>&nbsp;</p>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

<div align="left">
<table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="98%" border="0">
<tr>
<td style="BORDER-TOP: black 1pt solid" valign="top" nowrap width="50%">
<p><font size="1">Energy Conversion Devices, Inc.<br>
Executive Severance Plan</font></p>
</td>

<td style="BORDER-TOP: black 1pt solid" valign="top" nowrap width="50%">
<p align="right"><font size="1">Page 14<br>
September 30, 2008</font></p>
</td>
</tr>
</table>
</div>
<!-- EEDocs PBStart-->

<p style="PAGE-BREAK-BEFORE: always"></p>
<PAGE><!-- EEDocs PBEnd-->

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 18pt; TEXT-ALIGN: center"><b><font size="2">SECTION 6.</font></b><font size="1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><b><font size="2">RELEASE</font></b></p>
<a name="toc28a"></a>&nbsp;

<div align="left">
<table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="139" border="0">
<tr>
<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" nowrap width="48">
<p><font size="2">6.1.</font></p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" nowrap width="91">
<p><b><font size="2">Generally</font></b><font size="2">.</font></p>
</td>
</tr>
</table>
</div>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0.5in; TEXT-ALIGN: left"><font size="2">A Participant will not be entitled to any benefits under this Plan unless, at the time of the Participant&rsquo;s Qualifying Termination, he or she executes and does not subsequently revoke a release satisfactory to the Company releasing the Company, its affiliates, subsidiaries, shareholders, directors, officers, employees, representatives, and agents and their successors and
assigns from any and all employment-related claims the Participant or his or her successors and beneficiaries might then have against them (excluding any claims the Participant might then have under this Plan or any employee benefit plan sponsored by the Company). The release will be substantially in the form that is attached as Exhibit A to the Plan.</font></p>
<a name="toc29a"></a>&nbsp;

<div align="left">
<table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="301" border="0">
<tr>
<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" nowrap width="48">
<p><font size="2">6.2.</font></p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" nowrap width="253">
<p><b><font size="2">Time Limit for Providing Release</font></b><font size="2">.</font></p>
</td>
</tr>
</table>
</div>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0.5in; TEXT-ALIGN: left"><font size="2">A Participant will execute and submit the release to the Company within 30 days after the date of the Participant&rsquo;s Qualifying Termination. However, if the Participant has a Qualifying Termination in connection with an exit incentive or other employment termination program offered to a group or class of employees, the Participant will have 50 days after the Participant
terminates employment to execute and submit the release to the Company.</font></p>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"><a name="toc30a"></a>&nbsp;</p>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

<div align="left">
<table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="98%" border="0">
<tr>
<td style="BORDER-TOP: black 1pt solid" valign="top" nowrap width="50%">
<p><font size="1">Energy Conversion Devices, Inc.<br>
Executive Severance Plan</font></p>
</td>

<td style="BORDER-TOP: black 1pt solid" valign="top" nowrap width="50%">
<p align="right"><font size="1">Page 15<br>
September 30, 2008</font></p>
</td>
</tr>
</table>
</div>
<!-- EEDocs PBStart-->

<p style="PAGE-BREAK-BEFORE: always"></p>
<PAGE><!-- EEDocs PBEnd-->

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 18pt; TEXT-ALIGN: center"><b><font size="2">SECTION 7.</font></b><font size="1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><b><font size="2">NATURE OF PARTICIPANT'S INTEREST IN THE PLAN</font></b></p>
<a name="toc31a"></a>&nbsp;

<div align="left">
<table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="203" border="0">
<tr>
<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" nowrap width="48">
<p><font size="2">7.1.</font></p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" nowrap width="155">
<p><b><font size="2">No Right to Assets</font></b><font size="2">.</font></p>
</td>
</tr>
</table>
</div>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0.5in; TEXT-ALIGN: left"><font size="2">Participation in the Plan does not create, in favor of any Participant, any right or lien in or against any asset of the Company. Nothing contained in the Plan, and no action taken under its provisions, will create or be construed to create a trust of any kind, or a fiduciary relationship, between the Company and a Participant or any other person. The Company&rsquo;s promise to pay
benefits under the Plan will at all times remain unfunded as to each Participant, whose rights under the Plan are limited to those of a general and unsecured creditor of the Company.</font></p>
<a name="toc32a"></a>&nbsp;

<div align="left">
<table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="272" border="0">
<tr>
<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" nowrap width="48">
<p><font size="2">7.2.</font></p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" nowrap width="224">
<p><b><font size="2">No Right to Transfer Interest</font></b><font size="2">.</font></p>
</td>
</tr>
</table>
</div>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0.5in; TEXT-ALIGN: left"><font size="2">Rights to benefits payable under the Plan are not subject in any manner to alienation, sale, transfer, assignment, pledge, or encumbrance. However, the Administrative Committee may recognize the right of an alternate payee named in a domestic relations order to receive all or part of a Participant&rsquo;s benefits under the Plan, but only if (a) the domestic relations order would be
a &ldquo;qualified domestic relations order&rdquo; within the meaning of section 414(p) of the Code (if section 414 (p) applied to the Plan), (b) the domestic relations order does not attempt to give the alternate payee any right to any asset of the Company, (c) the domestic relations order does not attempt to give the alternate payee any right to receive payments under the Plan at a time or in an amount that the Participant could not receive under the Plan, and (d) the amount of
the Participant&rsquo;s benefits under the Plan are reduced to reflect any payments made or due the alternate payee.</font></p>
<a name="toc33a"></a>&nbsp;

<div align="left">
<table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="235" border="0">
<tr>
<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" nowrap width="48">
<p><font size="2">7.3.</font></p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" nowrap width="187">
<p><b><font size="2">No Employment Rights</font></b><font size="2">.</font></p>
</td>
</tr>
</table>
</div>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0.5in; TEXT-ALIGN: left"><font size="2">No provisions of the Plan and no action taken by the Company, the Board of Directors, the Compensation Committee, or the Administrative Committee will give any person any right to be retained in the employ of the Company, and the Company specifically reserves the right and power to dismiss or discharge any Participant for any reason or no reason and at any time.</font></p>
<a name="toc34a"></a>&nbsp;

<div align="left">
<table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="288" border="0">
<tr>
<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" nowrap width="48">
<p><font size="2">7.4.</font></p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" nowrap width="240">
<p><b><font size="2">Withholding and Tax Liabilities</font></b><font size="2">.</font></p>
</td>
</tr>
</table>
</div>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0.5in; TEXT-ALIGN: left"><font size="2">The amount of any withholdings required to be made by any government or government agency will be deducted from benefits paid under the Plan to the extent deemed necessary by the Administrative Committee. In addition, the Participant will bear the cost of any taxes not withheld on benefits provided under the Plan, regardless of whether withholding is required, except as provided in
Section 4.5 (relating to Gross-Up Payments).</font></p>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in; TEXT-ALIGN: left">&nbsp;</p>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"><a name="toc35a"></a></p>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

<div align="left">
<table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="98%" border="0">
<tr>
<td style="BORDER-TOP: black 1pt solid" valign="top" nowrap width="50%">
<p><font size="1">Energy Conversion Devices, Inc.<br>
Executive Severance Plan</font></p>
</td>

<td style="BORDER-TOP: black 1pt solid" valign="top" nowrap width="50%">
<p align="right"><font size="1">Page&nbsp;16<br>
September 30, 2008</font></p>
</td>
</tr>
</table>
</div>

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<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 18pt; TEXT-ALIGN: center"><b><font size="2">SECTION 8.</font></b><font size="1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><b><font size="2">ADMINISTRATION, INTERPRETATION, AND MODIFICATION OF PLAN</font></b></p>
<a name="toc36a"></a>&nbsp;

<div align="left">
<table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="203" border="0">
<tr>
<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" nowrap width="48">
<p><font size="2">8.1.</font></p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" nowrap width="155">
<p><b><font size="2">Plan Administrator</font></b><font size="2">.</font></p>
</td>
</tr>
</table>
</div>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0.5in; TEXT-ALIGN: left"><font size="2">The Administrative Committee will administer the Plan.</font></p>
<a name="toc37a"></a>&nbsp;

<div align="left">
<table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="268" border="0">
<tr>
<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" nowrap width="48">
<p><font size="2">8.2.</font></p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" nowrap width="220">
<p><b><font size="2">Powers of the Administrator</font></b><font size="2">.</font></p>
</td>
</tr>
</table>
</div>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0.5in; TEXT-ALIGN: left"><font size="2">The Administrative Committee powers include, but are not limited to, the power to adopt rules consistent with the Plan; the power to decide all questions relating to the interpretation of the terms and provisions of the Plan; and the power to resolve all other questions arising under the Plan (including, without limitation, the power to remedy possible ambiguities, inconsistencies,
or omissions by a general rule or particular decision). The Administrative Committee has full discretionary authority to exercise each of the foregoing powers.</font></p>
<a name="toc38a"></a>&nbsp;

<div align="left">
<table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="332" border="0">
<tr>
<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" nowrap width="48">
<p><font size="2">8.3.</font></p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" nowrap width="284">
<p><b><font size="2">Finality of Committee Determinations</font></b><font size="2">.</font></p>
</td>
</tr>
</table>
</div>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0.5in; TEXT-ALIGN: left"><font size="2">Determinations by the Administrative Committee and any interpretation, rule, or decision adopted by the Administrative Committee under the Plan or in carrying out or administering the Plan will be final and binding for all purposes and upon all interested persons, their heirs, and their personal representatives.</font></p>
<a name="toc39a"></a>&nbsp;

<div align="left">
<table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="143" border="0">
<tr>
<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" nowrap width="48">
<p><font size="2">8.4.</font></p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" nowrap width="95">
<p><b><font size="2">Incapacity</font></b><font size="2">.</font></p>
</td>
</tr>
</table>
</div>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0.5in; TEXT-ALIGN: left"><font size="2">If the Administrative Committee determines that any Participant entitled to benefits under the Plan is unable to care for his or her affairs because of illness or accident, any payment due (unless a duly qualified guardian or other legal representative has been appointed) may be paid for the benefit of such Participant to his or her spouse, parent, brother, sister, or other party
deemed by the Administrative Committee to have incurred expenses for such Participant. If a Participant dies after having a Qualifying Termination, any payment of the Participant's Severance Benefit remaining due to the Participant will be paid to the Participant's estate at the time such payment would otherwise be paid to the Participant but no later than 90 days after the Participant's death.</font></p>
<a name="toc40a"></a>&nbsp;

<div align="left">
<table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="371" border="0">
<tr>
<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" nowrap width="48">
<p><font size="2">8.5.</font></p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" nowrap width="323">
<p><b><font size="2">Amendment, Suspension, and Termination</font></b><font size="2">.</font></p>
</td>
</tr>
</table>
</div>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0.5in; TEXT-ALIGN: left"><font size="2">The Board of Directors has the right by written resolution to amend, suspend, or terminate the Plan at any time, except, with respect to a Participant, as provided under the Participant&rsquo;s Participation Agreement. However, no amendment, suspension, or termination that reduces the benefits to which a Participant is entitled under the Plan will apply to an employee who already is
a Participant in the Plan without his or her express written consent if such amendment, suspension, or termination occurs less than one year before, or within the two-year period following, a Change in Control. Notwithstanding the foregoing, the Board of Directors may amend the Plan at any time to comply with Section 409A.</font></p>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"><a name="toc41a"></a>&nbsp;</p>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

<div align="left">
<table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="98%" border="0">
<tr>
<td style="BORDER-TOP: black 1pt solid" valign="top" nowrap width="50%">
<p><font size="1">Energy Conversion Devices, Inc.<br>
Executive Severance Plan</font></p>
</td>

<td style="BORDER-TOP: black 1pt solid" valign="top" nowrap width="50%">
<p align="right"><font size="1">Page 17<br>
September 30, 2008</font></p>
</td>
</tr>
</table>
</div>
<!-- EEDocs PBStart-->

<p style="PAGE-BREAK-BEFORE: always"></p>
<PAGE><!-- EEDocs PBEnd-->

<div align="left">
<table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="268" border="0">
<tr>
<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" nowrap width="48">
<p><font size="2">8.6.</font></p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" nowrap width="220">
<p><b><font size="2">Power to Delegate Authority</font></b><font size="2">.</font></p>
</td>
</tr>
</table>
</div>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0.5in; TEXT-ALIGN: left"><font size="2">The Board of Directors and the Administrative Committee may, in their sole discretion, delegate to any person or persons all or part of its authority and responsibility under the Plan, including, without limitation, the authority to amend the Plan.</font></p>
<a name="toc42a"></a>&nbsp;

<div align="left">
<table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="139" border="0">
<tr>
<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" nowrap width="48">
<p><font size="2">8.7.</font></p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" nowrap width="91">
<p><b><font size="2">Headings</font></b><font size="2">.</font></p>
</td>
</tr>
</table>
</div>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0.5in; TEXT-ALIGN: left"><font size="2">The headings used in this document are for convenience of reference only and may not be given any weight in interpreting any provision of the Plan.</font></p>
<a name="toc43a"></a>&nbsp;

<div align="left">
<table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="155" border="0">
<tr>
<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" nowrap width="48">
<p><font size="2">8.8.</font></p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" nowrap width="107">
<p><b><font size="2">Severability</font></b><font size="2">.</font></p>
</td>
</tr>
</table>
</div>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0.5in; TEXT-ALIGN: left"><font size="2">If an arbitrator or court of competent jurisdiction determines that any term, provision, or portion of this Plan is void, illegal, or unenforceable, the other terms, provisions, and portions of this Plan will remain in full force and effect, and the terms, provisions, and portions that are determined to be void, illegal, or unenforceable will either be limited so that they will
remain in effect to the extent permissible by law, or such arbitrator or court will substitute, to the extent enforceable, provisions similar thereto or other provisions, so as to provide to the Company, to the fullest extent permitted by applicable law, the benefits intended by this Plan.</font></p>
<a name="toc44a"></a>&nbsp;

<div align="left">
<table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="179" border="0">
<tr>
<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" nowrap width="48">
<p><font size="2">8.9.</font></p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" nowrap width="131">
<p><b><font size="2">Governing Law</font></b><font size="2">.</font></p>
</td>
</tr>
</table>
</div>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0.5in; TEXT-ALIGN: left"><font size="2">The Plan will be construed, administered, and regulated in accordance with the laws of Michigan (excluding any conflicts or choice of law rule or principle), except to the extent that those laws are preempted by federal law.</font></p>
<a name="toc45a"></a>&nbsp;

<div align="left">
<table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="268" border="0">
<tr>
<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" nowrap width="48">
<p><font size="2">8.10.</font></p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" nowrap width="220">
<p><b><font size="2">Complete Statement of Plan</font></b><font size="2">.</font></p>
</td>
</tr>
</table>
</div>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0.5in; TEXT-ALIGN: left"><font size="2">This Plan contains a complete statement of its terms. The Plan may be amended, suspended, or terminated only in writing and then only as provided in Section 8.5 or 8.6. A Participant&rsquo;s right to any benefit of a type provided under the Plan will be determined solely in accordance with the terms of the Plan. No other evidence, whether written or oral, will be taken into account
in interpreting the provisions of the Plan. Notwithstanding the preceding provisions of this Section 8.10, for purposes of determining benefits with respect to a Participant, this Plan will be deemed to include (a) the provisions of any Participation Agreement executed in accordance with Section 3.2, and (b) the provisions of any other written agreement between the Company and the Participant to the extent such other agreement explicitly provides for the incorporation of some or all
of its terms into this Plan.</font></p>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"><a name="toc46a"></a>&nbsp;</p>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

<div align="left">
<table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="98%" border="0">
<tr>
<td style="BORDER-TOP: black 1pt solid" valign="top" nowrap width="50%">
<p><font size="1">Energy Conversion Devices, Inc.<br>
Executive Severance Plan</font></p>
</td>

<td style="BORDER-TOP: black 1pt solid" valign="top" nowrap width="50%">
<p align="right"><font size="1">Page&nbsp;18<br>
September 30, 2008</font></p>
</td>
</tr>
</table>
</div>
<!-- EEDocs PBStart-->

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<PAGE><!-- EEDocs PBEnd-->

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 18pt; TEXT-ALIGN: center"><b><font size="2">SECTION 9.</font></b><font size="1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><b><font size="2">CLAIMS AND APPEALS</font></b></p>
<a name="toc47a"></a>&nbsp;

<div align="left">
<table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="399" border="0">
<tr>
<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" nowrap width="48">
<p><font size="2">9.1.</font></p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" nowrap width="351">
<p><b><font size="2">Application of Claims and Appeals Procedures.</font></b></p>
</td>
</tr>
</table>
</div>

<div align="left">
<table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" border="0">
<tr>
<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" width="48">
<p style="MARGIN-LEFT: 0in; TEXT-INDENT: 0in">&nbsp;</p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" width="48">
<p><font size="2">(a)</font></p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top">
<p><font size="2">The provisions of this Section 9 will apply to any claim for a benefit under the Plan, regardless of the basis asserted for the claim and regardless of when the act or omission upon which the claim is based occurred.</font></p>
</td>
</tr>
</table>
</div>

<div align="left">
<table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" border="0">
<tr>
<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" width="48">
<p style="MARGIN-LEFT: 0in; TEXT-INDENT: 0in">&nbsp;</p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" width="48">
<p><font size="2">(b)</font></p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top">
<p><font size="2">No claim for non-payment or underpayment of benefits allegedly owed under the Plan may be filed in court until the claimant has exhausted the claims review procedures established in accordance with this Section 9.</font></p>
</td>
</tr>
</table>
</div>
<a name="toc48a"></a>&nbsp;

<div align="left">
<table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="163" border="0">
<tr>
<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" nowrap width="48">
<p><font size="2">9.2.</font></p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" nowrap width="115">
<p><b><font size="2">Initial Claims.</font></b></p>
</td>
</tr>
</table>
</div>

<div align="left">
<table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" border="0">
<tr>
<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" width="48">
<p style="MARGIN-LEFT: 0in; TEXT-INDENT: 0in">&nbsp;</p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" width="48">
<p><font size="2">(a)</font></p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top">
<p><font size="2">Any claim for benefits will be in writing (which may be electronic if permitted by the Administrative Committee) and will be delivered to a claims administrator designated in writing by the Administrative Committee</font></p>
</td>
</tr>
</table>
</div>

<div align="left">
<table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" border="0">
<tr>
<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" width="48">
<p style="MARGIN-LEFT: 0in; TEXT-INDENT: 0in">&nbsp;</p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" width="48">
<p><font size="2">(b)</font></p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top">
<p><font size="2">Each claim for benefits will be decided by the claims administrator or the Administrative Committee (as determined by the Administrative Committee</font><b><font size="2">)</font></b> <font size="2">within a reasonable period of time, but not later than 90 days after such claim is received by the claims administrator (without regard to whether the claim submission includes sufficient information to make a determination), unless the claims
administrator or the Administrative Committee determines that special circumstances require an extension of time for processing the claim. If the claims administrator or the Administrative Committee determines that an extension of time for processing is required, the claims administrator or the Administrative Committee will notify the claimant in writing before the end of the initial 90-day period of the circumstances requiring an extension of time and the date by
which a decision is expected.</font></p>
</td>
</tr>
</table>
</div>

<div align="left">
<table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" border="0">
<tr>
<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" width="48">
<p style="MARGIN-LEFT: 0in; TEXT-INDENT: 0in">&nbsp;</p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" width="48">
<p><font size="2">(c)</font></p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top">
<p><font size="2">If any claim is denied in whole or in part, the claims administrator or the Administrative Committee will provide to the claimant a written decision, issued by the end of the period prescribed by subsection (b), above, that includes the following information:</font></p>
</td>
</tr>
</table>
</div>

<div align="left">
<table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="547" border="0">
<tr>
<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" nowrap width="96">
<p style="MARGIN-LEFT: 0in">&nbsp;</p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" nowrap width="48">
<p><font size="2">(1)</font></p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" nowrap width="403">
<p><font size="2">The specific reason or reasons for denial of the claim;</font></p>
</td>
</tr>
</table>
</div>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 1in; TEXT-ALIGN: left"><font size="2">(2)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;References to the specific Plan provisions upon which such denial is based;</font></p>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 1in; TEXT-ALIGN: left"><font size="2">(3)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A description of any additional material or information necessary to perfect the claim, and an explanation of why such material or information is necessary;</font></p>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 1in; TEXT-ALIGN: left"><font size="2">(4)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;An explanation of the appeal procedures Plan&rsquo;s and the applicable time limits; and</font></p>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 1in; TEXT-ALIGN: left"><font size="2">(5)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A statement of the claimant&rsquo;s right to bring a civil action under section 502(a) of ERISA, if his or her claim is denied upon review.</font></p>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"><a name="toc49a"></a>&nbsp;</p>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

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<td style="BORDER-TOP: black 1pt solid" valign="top" nowrap width="50%">
<p><font size="1">Energy Conversion Devices, Inc.<br>
Executive Severance Plan</font></p>
</td>

<td style="BORDER-TOP: black 1pt solid" valign="top" nowrap width="50%">
<p align="right"><font size="1">Page 19<br>
September 30, 2008</font></p>
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<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0.25in" valign="top" nowrap width="48">
<p><font size="2">9.3.</font></p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0.25in" valign="top" nowrap width="81">
<p><b><font size="2">Appeals.</font></b></p>
</td>
</tr>
</table>
</div>

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<table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" border="0">
<tr>
<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" width="48">
<p style="MARGIN-LEFT: 0in; TEXT-INDENT: 0in">&nbsp;</p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" width="48">
<p><font size="2">(a)</font></p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top">
<p><font size="2">If a claim for benefits is denied in whole or in part, the claimant may appeal the denial to the Administrative Committee. Such appeal will be in writing (which may be electronic, if permitted by the Administrative Committee), may include any written comments, documents, records, or other information relating to the claim for benefits, and will be delivered to the Administrative Committee within 60 days after the claimant receives written notice
that his or her claim has been denied.</font></p>
</td>
</tr>
</table>
</div>

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<table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" border="0">
<tr>
<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" width="48">
<p style="MARGIN-LEFT: 0in; TEXT-INDENT: 0in">&nbsp;</p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" width="48">
<p><font size="2">(b)</font></p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top">
<p><font size="2">The Administrative Committee will decide each appeal within a reasonable period of time, but not later than 60 days after such claim is received by the Administrative Committee, unless the Administrative Committee determines that special circumstances require an extension of time for processing the appeal.</font></p>
</td>
</tr>
</table>
</div>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 1in; TEXT-ALIGN: left"><font size="2">(1)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If the Administrative Committee determines that an extension of time for processing is required, the Administrative Committee will notify the claimant in writing before the end of the initial 60-day period of the circumstances requiring an extension of time and the date by which the claims administrator expects to render a
decision.</font></p>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 1in; TEXT-ALIGN: left"><font size="2">(2)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If an extension of time pursuant to paragraph (1), above, is due to a claimant&rsquo;s failure to submit information necessary to decide the appeal, the period for deciding the appeal will be tolled from the date on which the notification of extension is sent to the claimant until the date on which the claimant responds to the request for
additional information.</font></p>

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<table style="MARGIN-LEFT: 0pt; BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" border="0">
<tr>
<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" width="48">
<p style="MARGIN-LEFT: 0in; TEXT-INDENT: 0in">&nbsp;</p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" width="48">
<p><font size="2">(c)</font></p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top">
<p><font size="2">In connection with any appeal, a claimant will be provided, upon request and free of charge, reasonable access to, and copies of, all documents, records, and other information relevant to his or her claim for benefits. A document, record, or other information will be considered relevant to a claim for benefits if such document, record, or other information:</font></p>
</td>
</tr>
</table>
</div>

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<table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="541" border="0">
<tr>
<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" nowrap width="96">
<p style="MARGIN-LEFT: 0in">&nbsp;</p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" nowrap width="48">
<p><font size="2">(1)</font></p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" nowrap width="397">
<p><font size="2">Was relied upon in making the benefit determination;</font></p>
</td>
</tr>
</table>
</div>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 1in; TEXT-ALIGN: left"><font size="2">(2)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Was submitted, considered, or generated in the course of making the benefit determination, without regard to whether such document, record, or other information was relied upon in making the benefit determination; or</font></p>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 1in; TEXT-ALIGN: left"><font size="2">(3)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Demonstrates compliance with processes and safeguards designed to ensure and to verify that the benefit determination was made in accordance with the terms of the Plan and that such terms of the Plan have been applied consistently with respect to similarly situated claimants.</font></p>

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<p style="MARGIN-LEFT: 0in; TEXT-INDENT: 0in">&nbsp;</p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" width="48">
<p><font size="2">(d)</font></p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top">
<p><font size="2">The Administrative Committee review on appeal will take into account all comments, documents, records and other information submitted by the claimant, without regard to whether such information was considered in the initial benefit determination.</font></p>
</td>
</tr>
</table>
</div>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

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<tr>
<td style="BORDER-TOP: black 1pt solid" valign="top" nowrap width="50%">
<p><font size="1">Energy Conversion Devices, Inc.<br>
Executive Severance Plan</font></p>
</td>

<td style="BORDER-TOP: black 1pt solid" valign="top" nowrap width="50%">
<p align="right"><font size="1">Page 20<br>
September 30, 2008</font></p>
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</div>
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<p style="MARGIN-LEFT: 0in; TEXT-INDENT: 0in">&nbsp;</p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" width="48">
<p><font size="2">(e)</font></p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top">
<p><font size="2">If any appeal is denied in whole or in part, the Administrative Committee will provide to the claimant a written decision, issued by the end of the period prescribed by subsection (b), above, that includes the following information:</font></p>
</td>
</tr>
</table>
</div>

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<table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="507" border="0">
<tr>
<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" nowrap width="96">
<p style="MARGIN-LEFT: 0in">&nbsp;</p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" nowrap width="48">
<p><font size="2">(1)</font></p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" nowrap width="363">
<p><font size="2">The specific reason or reasons for the decision;</font></p>
</td>
</tr>
</table>
</div>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 1in; TEXT-ALIGN: left"><font size="2">(2)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;References to the specific Plan provisions upon which the decision is based;</font></p>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 1in; TEXT-ALIGN: left"><font size="2">(3)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;An explanation of the claimant&rsquo;s right to receive, upon request and free of charge, reasonable access to, and copies of, all documents, records, and other information relevant to his or her claim for benefits (as determined pursuant to subsection (c), above); and</font></p>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 1in; TEXT-ALIGN: left"><font size="2">(4)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A statement of the claimant&rsquo;s right to bring a civil action under section 502(a) of ERISA.</font></p>
<a name="toc50a"></a>&nbsp;

<div align="left">
<table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="455" border="0">
<tr>
<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0.25in" valign="top" nowrap width="48">
<p><font size="2">9.4.</font></p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0.25in" valign="top" nowrap width="407">
<p><b><font size="2">Other Rules and Rights Regarding Claims and Appeals.</font></b></p>
</td>
</tr>
</table>
</div>

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<table style="MARGIN-LEFT: 0pt; BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" border="0">
<tr>
<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" width="48">
<p style="MARGIN-LEFT: 0in; TEXT-INDENT: 0in">&nbsp;</p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" width="48">
<p><font size="2">(a)</font></p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top">
<p><font size="2">A claimant may authorize a representative to pursue any claim or appeal on his or her behalf. The Administrative Committee may establish reasonable procedures for verifying that any representative has in fact been authorized to act on his or her behalf.</font></p>
</td>
</tr>
</table>
</div>

<div align="left">
<table style="MARGIN-LEFT: 0pt; BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" border="0">
<tr>
<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" width="48">
<p style="MARGIN-LEFT: 0in; TEXT-INDENT: 0in">&nbsp;</p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" width="48">
<p><font size="2">(b)</font></p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top">
<p><font size="2">Notwithstanding the deadlines prescribed by this 9.4, the Administrative Committee and any claimant may agree to a longer period for deciding a claim or appeal or for filing an appeal, provided that the Administrative Committee will not extend any deadline for filing an appeal unless imposition of the deadline prescribed by Section 9.3(a) would be unreasonable under the applicable circumstances.</font></p>
</td>
</tr>
</table>
</div>
<a name="toc51a"></a>&nbsp;

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<table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="168" border="0">
<tr>
<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" nowrap width="48">
<p><font size="2">9.5.</font></p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" nowrap width="120">
<p><b><font size="2">Interpretation.</font></b></p>
</td>
</tr>
</table>
</div>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0.5in; TEXT-ALIGN: left"><font size="2">The provisions of this Section 9 are intended to comply with section 503 of ERISA and will be administered and interpreted in a manner consistent with such intent.</font></p>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in; TEXT-ALIGN: left">&nbsp;</p>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

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<tr>
<td style="BORDER-TOP: black 1pt solid" valign="top" nowrap width="50%">
<p><font size="1">Energy Conversion Devices, Inc.<br>
Executive Severance Plan</font></p>
</td>

<td style="BORDER-TOP: black 1pt solid" valign="top" nowrap width="50%">
<p align="right"><font size="1">Page 21<br>
September 30, 2008</font></p>
</td>
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</table>
</div>
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<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center"><b><font size="2">EXHIBIT A</font></b></p>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center">&nbsp;</p>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center"><b><font size="2">DRAFT RELEASE</font></b></p>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center">&nbsp;</p>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; TEXT-ALIGN: left"><font size="2">In consideration of the benefits I am entitled to receive under the Energy Conversion Devices, Inc. Executive Severance Plan (the &ldquo;Plan&rdquo;), I,</font> <b><font size="2">[employee name]</font></b><font size="2">, on behalf of myself, and on behalf of my heirs, successors and assigns, hereby agree to release Energy Conversion Devices, Inc. (the &ldquo;Company&rdquo;), all of its past, present
and future subsidiaries, affiliates, directors, officers, employees; and all of its and their respective heirs, successors, and assigns (the &ldquo;Released Parties&rdquo;) from any and all claims, demands, actions, and liabilities that I might otherwise have asserted arising out of my employment with the Company, including the termination of that employment.</font></p>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; TEXT-ALIGN: left"><font size="2">I also promise not to sue the Company or any of the Released Parties based, in whole or in part, on any claims relating to my employment with the Company or the termination of that employment. However, I am not releasing my rights, if any, under the Plan or any qualified employee retirement plan, nor am I releasing any rights or claims that may arise after the date on which I sign this Release. Those
rights, and only those rights, survive unaffected by this Release.</font></p>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; TEXT-ALIGN: left"><font size="2">I understand that as a consequence of my signing this Release I am giving up, with respect to my employment and the termination of that employment, any and all rights I might otherwise have under (1) the Age Discrimination in Employment Act of 1967, as amended; (2) and all other federal, state or municipal laws prohibiting discrimination in employment on the basis of sex, race, national origin,
religion, age, handicap or other invidious factor; and (3) any and all theories of contract or tort law, whether based on common law or otherwise.</font></p>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; TEXT-ALIGN: left"><font size="2">I acknowledge and agree that:</font></p>

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<tr>
<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" width="48">
<p><font size="2">1.</font></p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top">
<p><font size="2">The benefits I am receiving under the Plan constitute consideration over and above any benefits that I might be entitled to receive without executing this Release.</font></p>
</td>
</tr>
</table>
</div>

<div align="left">
<table style="MARGIN-LEFT: 0pt; BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" border="0">
<tr>
<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" width="48">
<p><font size="2">2.</font></p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top">
<p><font size="2">The Company advised me in writing to consult with an attorney prior to executing a copy of the Plan document and the Release.</font></p>
</td>
</tr>
</table>
</div>

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<table style="MARGIN-LEFT: 0pt; BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" border="0">
<tr>
<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" width="48">
<p><font size="2">3.</font></p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top">
<p><font size="2">I was given a period of at least 21 days within which to consider the Plan and the Release.</font></p>
</td>
</tr>
</table>
</div>

<div align="left">
<table style="MARGIN-LEFT: 0pt; BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" border="0">
<tr>
<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" width="48">
<p><font size="2">4.</font></p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top">
<p><font size="2">The Company has advised me of my statutory right to revoke my acceptance of the terms of the Plan and this Release at any time within seven (7) days of my signing of this Release.</font></p>
</td>
</tr>
</table>
</div>

<div align="left">
<table style="MARGIN-LEFT: 0pt; BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" border="0">
<tr>
<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" width="48">
<p><font size="2">5.</font></p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top">
<p><font size="2">I remain subject to and will continue to comply with the restrictive covenants set forth in Section 5 of the Plan.</font></p>
</td>
</tr>
</table>
</div>

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<table style="MARGIN-LEFT: 0pt; BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" border="0">
<tr>
<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top" width="48">
<p><font size="2">6.</font></p>
</td>

<td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 12pt; PADDING-TOP: 0in" valign="top">
<p><font size="2">I warrant and represent that my decision to accept the Plan (including this Release) was (a)&nbsp;entirely voluntary on my part; (b) not made in reliance on any inducement, promise or representation, whether express or implied, other than the inducements, representations and promises expressly set forth in the Plan or in the Release; and (c) did not result from any threats or other coercive activities to induce acceptance of the Plan or
Release.</font></p>
</td>
</tr>
</table>
</div>








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<td style="BORDER-TOP: black 1pt solid" valign="top" nowrap width="50%">
<p><font size="1">Energy Conversion Devices, Inc.<br>
Executive Severance Plan</font></p>
</td>

<td style="BORDER-TOP: black 1pt solid" valign="top" nowrap width="50%">
<p align="right"><font size="1">Page A-1<br>
September 30, 2008</font></p>
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<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; TEXT-ALIGN: left"><font size="2">In the event I decide to exercise my right to revoke within seven (7) days of my acceptance of this Release, I warrant and represent that I will do the following: (1)&nbsp;notify the Company in writing of my intent to revoke my agreement, and (2)&nbsp;simultaneously return in full the consideration received from the Company under the Plan. I acknowledge that, if I revoke this Release during the
revocation period, I will not be entitled to the benefits under the Plan.</font></p>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; TEXT-ALIGN: left"><font size="2">I further warrant and represent that I fully understand and appreciate the consequence of my signing this Release.</font></p>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; TEXT-ALIGN: left"><font size="2">IN WITNESS WHEREOF, I hereby acknowledge receipt of consideration and execute the foregoing agreement at ___, this ____ day of ____________, 20__.</font></p>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 3.5in; TEXT-ALIGN: left"><font size="2">_______________________________</font></p>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 4in; TEXT-ALIGN: left"><b><font size="2">[name of employee]</font></b></p>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0.5in; TEXT-ALIGN: left"><font size="2">Witnessed by _______________ on this _____ day of ____________, 20_.</font></p>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 3.5in; TEXT-ALIGN: left"><font size="2">_______________________________</font></p>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 4in; TEXT-ALIGN: left"><font size="2">WITNESS</font></p>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

<p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

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<p><font size="1">Energy Conversion Devices, Inc.<br>
Executive Severance Plan</font></p>
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<p align="right"><font size="1">Page A-2<br>
September 30, 2008</font></p>
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<DOCUMENT>
<TYPE>EX-31.1
<SEQUENCE>6
<FILENAME>ex31p1_ceo-certification.htm
<DESCRIPTION>CEO CERTIFICATION - RULE 13A-14(A)/15D-14(A)
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<p style=' margin-bottom:18pt; margin-top:6pt; text-indent:4.5in;text-align:left;'><font size=1>&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>Exhibit 31.1</font></p>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><B><font SIZE=2>CERTIFICATION OF CEO PURSUANT TO </font></B></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><B><font SIZE=2>SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002</font></B></p>

<p style=' margin-bottom:0pt; margin-top:6pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:6pt; margin-top:6pt;text-align:justify;'><font size=2>I, Mark D. Morelli, Chief Executive Officer of Energy Conversion Devices, Inc., certify that:</font></p>


<p style=' margin-bottom:6pt; margin-top:12pt;text-align:justify;'><font size=2>1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I have reviewed this quarterly report on Form 10-Q of Energy Conversion Devices, Inc.;</font></p>
<p style=' margin-bottom:6pt; margin-top:12pt;text-align:justify;'><font size=2>2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;</font></p>

<p style=' margin-bottom:6pt; margin-top:12pt;text-align:justify;'><font size=2>3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;</font></p>

<p style=' margin-bottom:6pt; margin-top:12pt;text-align:justify;'><font size=2>4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The registrant&#146;s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:</font></p>


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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:6.0pt;margin-bottom: 6.0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="16" 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 size=2>a)</font></p> </td>
        <td  valign=top style='padding:6.0pt 0in 6.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;</font></p> </td> </tr></table>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:6.0pt;margin-bottom: 6.0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="16" 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 size=2>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:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;</font></p> </td> </tr></table>
</div>



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<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
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        <td width="36" valign=top style='padding:6.0pt 0in 6.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:6.0pt;margin-bottom: 6.0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="16" 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 size=2>c)</font></p> </td>
        <td  valign=top style='padding:6.0pt 0in 6.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Evaluated the effectiveness of the registrant&#146;s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and </font></p> </td> </tr></table>
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        <td width="36" valign=top style='padding:6.0pt 0in 6.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:6.0pt;margin-bottom: 6.0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="16" 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 size=2>d)</font></p> </td>
        <td  valign=top style='padding:6.0pt 0in 6.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Disclosed in this report any change in the registrant&#146;s internal control over financial reporting that occurred during the registrant&#146;s most recent fiscal quarter (the registrant&#146;s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant&#146;s internal control over financial reporting. </font></p> </td> </tr></table>
</div>


<p style=' margin-bottom:6pt; margin-top:12pt;text-align:justify;'><font size=2>5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The registrant&#146;s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant&#146;s auditors and the audit committee of registrant&#146;s Board of Directors (or persons performing the equivalent functions):</font></p>


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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:6.0pt;margin-bottom: 6.0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="16" 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 size=2>a)</font></p> </td>
        <td  valign=top style='padding:6.0pt 0in 6.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant&#146;s ability to record, process, summarize and report financial information; and</font></p> </td> </tr></table>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:6.0pt;margin-bottom: 6.0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="16" 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 size=2>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:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant&#146;s internal control over financial reporting.</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:6pt;text-align:justify;'><font 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=2>Date: November 10, 2008</font></p> </td>
        <td width="144" nowrap valign=top style="border-bottom: solid black 1px">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>/s/ Mark D. Morelli</font></p> </td> </tr>

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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Mark D. Morelli<BR>Chief Executive Officer</font></p> </td> </tr></table>
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<DOCUMENT>
<TYPE>EX-31.2
<SEQUENCE>7
<FILENAME>ex31p2_cfo-certification.htm
<DESCRIPTION>CFO CERTIFICATION - RULE 13A-14(A)/15D-14(A)
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<p style=' margin-bottom:15pt; margin-top:6pt; text-indent:0.5in;text-align:center;'><font size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>Exhibit 31.2</font></p>



<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><B><font SIZE=2>CERTIFICATION OF CFO PURSUANT TO </font></B></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><B><font SIZE=2>SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002</font></B></p>

<p style=' margin-bottom:0pt; margin-top:6pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:6pt; margin-top:6pt;text-align:justify;'><font size=2>I, Harry W. Zike, Chief Financial Officer of Energy Conversion Devices, Inc., certify that:</font></p>



<p style=' margin-bottom:6pt; margin-top:12pt;text-align:justify;'><font size=2>1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I have reviewed this quarterly report on Form 10-Q of Energy Conversion Devices, Inc.;</font></p>

<p style=' margin-bottom:6pt; margin-top:12pt;text-align:justify;'><font size=2>2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;</font></p>

<p style=' margin-bottom:6pt; margin-top:12pt;text-align:justify;'><font size=2>3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;</font></p>

<p style=' margin-bottom:6pt; margin-top:12pt;text-align:justify;'><font size=2>4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The registrant&#146;s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:</font></p>


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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:6.0pt;margin-bottom: 6.0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="16" 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 size=2>a)</font></p> </td>
        <td  valign=top style='padding:6.0pt 0in 6.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;</font></p> </td> </tr></table>
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<div align=left>

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        <td width="36" valign=top style='padding:6.0pt 0in 6.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:6.0pt;margin-bottom: 6.0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="16" 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 size=2>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:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;</font></p> </td> </tr></table>
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<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
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        <td width="36" valign=top style='padding:6.0pt 0in 6.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:6.0pt;margin-bottom: 6.0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="16" 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 size=2>c)</font></p> </td>
        <td  valign=top style='padding:6.0pt 0in 6.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Evaluated the effectiveness of the registrant&#146;s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and </font></p> </td> </tr></table>
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<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
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        <td width="36" valign=top style='padding:6.0pt 0in 6.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:6.0pt;margin-bottom: 6.0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="16" 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 size=2>d)</font></p> </td>
        <td  valign=top style='padding:6.0pt 0in 6.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Disclosed in this report any change in the registrant&#146;s internal control over financial reporting that occurred during the registrant&#146;s most recent fiscal quarter (the registrant&#146;s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant&#146;s internal control over financial reporting. </font></p> </td> </tr></table>
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<p style=' margin-bottom:6pt; margin-top:12pt;text-align:justify;'><font size=2>5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The registrant&#146;s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant&#146;s auditors and the audit committee of registrant&#146;s Board of Directors (or persons performing the equivalent functions):</font></p>


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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:6.0pt;margin-bottom: 6.0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="16" 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 size=2>a)</font></p> </td>
        <td  valign=top style='padding:6.0pt 0in 6.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant&#146;s ability to record, process, summarize and report financial information; and</font></p> </td> </tr></table>
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        <td width="36" valign=top style='padding:6.0pt 0in 6.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:6.0pt;margin-bottom: 6.0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="16" 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 size=2>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:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant&#146;s internal control over financial reporting.</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:6pt;text-align:justify;'><font 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=2>Date: November 10, 2008</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=2>/s/ Harry W. Zike</font></p> </td> </tr>

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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&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=2>Harry W. Zike<BR>Chief Financial Officer</font></p> </td> </tr></table>
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<TYPE>EX-32
<SEQUENCE>8
<FILENAME>ex32_certifications906.htm
<DESCRIPTION>CEO-CFO CERTIFICATIONS - PURSUANT TO SECTION 906
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            <p style='margin-left:0pt;text-indent:20pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Exhibit 32</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

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

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font SIZE=2>SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>(18 U.S.C. SECTION 1350)</font></p>

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

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.4in;text-align:left;'><font size=2>In connection with the Quarterly Report of Energy Conversion Devices, Inc. (the &#147;Company&#148;) on Form 10-Q for the period September 30, 2008, as filed with the Securities and Exchange Commission on the date hereof (the &#147;Report&#148;), Mark D. Morelli, Chief Executive Officer of the Company, and Harry W. Zike, Chief Financial Officer of the Company, respectively, do each hereby certify, pursuant to Section 906 of the </font><i><font size=2>Sarbanes-Oxley</font></i><font size=2> Act of 2002 (18 U.S.C. Section 1350), that based on his knowledge:</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.4in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.96in; text-indent:-0.24in;text-align:left;'><font size=2>1.  The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.96in; text-indent:-0.24in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.96in; text-indent:-0.24in;text-align:left;'><font size=2>2.  The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.4in;text-align:left;'><font 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=2>/s/ Mark D. Morelli</font></p> </td> </tr></table>

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<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.4in;text-align:left;'><font size=2>&nbsp;Chief Executive Officer</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.4in;text-align:left;'><font size=2>&nbsp;November 10, 2008</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.4in;text-align:left;'><font 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=1>&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=2>/s/ Harry W. Zike</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.4in;text-align:left;'><font size=2>&nbsp;Harry W. Zike</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.4in;text-align:left;'><font size=2>&nbsp;Chief Financial Officer</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.4in;text-align:left;'><font size=2>&nbsp;November 10, 2008</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.4in;text-align:left;'><font size=2>&nbsp;</font></p>

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