Plextronics Enters into Three-Year Cooperative Agreement Worth Up to $14.2 Million with U.S. Army to Conduct Flexible Electronics Research

PITTSBURGH, June 25 /PRNewswire/ -- Plextronics, Inc. announced today that it has entered into a three-year cooperative agreement with the U.S. Army Research Laboratory (ARL) to conduct research that will lead to flexible electronic products for soldiers. If funding continues to be available through the Department of Defense over the next three years, the agreement is worth up to $14.2 million.

Included in the 2007 Department of Defense appropriations bill, an appropriation of $1 million will be made available to Plextronics immediately for the first year of the project. If the program funding continues in years two and three, the company will seek additional government appropriations estimated at more than $8.4 million. During the program, Plextronics will also commit $4.7 million in cost-share expenses.

"It's an honor to have this opportunity to work with ARL and make advances in flexible electronics technology that could literally change the way our military communicates," said Andy Hannah, president and CEO of Plextronics. "As a company, we've always made it a point to focus on products and technology that have the ability to make a significant impact, and this project certainly reflects that mandate."

The cooperative agreement between ARL and Plextronics establishes the Flexible Electronics Research Initiative (FERI). FERI will focus on the advancement of material and device technology for flexible electronics, which offers benefits particularly relevant to military applications. The resiliency of these devices, for example, could increase the lifetime and reliability of current display applications in harsh environments.

Some of the technologies and products that this research could lead to also include:

  -- Real-time maps and displays that continually receive electronic data
     and information, yet are durable and flexible enough to be rolled up
     and stored in soldiers' backpacks.
  -- Displays that are directly contoured onto a soldier's uniform, offering
     the ability to turn a shirt or jacket cuff into an information
     displaying device.

Shawn Williams, vice president of technology at Plextronics, said, "Using flexible electronics will literally take weight off our soldiers' backs. They are carrying heavy equipment, laptops and batteries now, and all of that can change with the new applications that are possible using this technology."

According to Dr. Eric Forsythe, cooperative agreement manager for the ARL on the project, the Army was eager to begin collaborating with Plextronics. "We are looking forward to working with Plextronics to create and refine technology that will directly benefit our soldiers," he said. "Using the Plexcore(TM) technology, we can explore new printed electronics applications specifically designed for the military."

Pennsylvania Senator Arlen Specter, the senior senator from Pennsylvania, commented, "This technology not only has the potential to benefit our soldiers worldwide, but Pennsylvania will also feel the impact of the cooperation between ARL and Plextronics. The funding will help Plextronics to add critical jobs to the region and will enable Southwestern Pennsylvania to continue to be a leader in developing electronics materials."

About Plextronics, Inc.

Plextronics, Inc. is a world leader in developing active layer technology for printed electronic devices - OLED displays and lighting, polymer solar cells and plastic circuitry. Active layer technology is the printed conductors and semiconductors that drive device performance. Plextronics has unsurpassed control of polymer design and ink formulation, as well as an intimate understanding of device physics and its impact on device performance. This knowledge is applied to the creation of Plexcore(TM) technology, which is specifically designed for each application to maximize device efficiency and operating lifetime in a cost-effective manner.

Plextronics' recent honors include: 2007 Red Herring Top 100 Company, 2006 Wall Street Journal Technology Innovation Awards Runner-Up, 2006 NREL Clean Energy Entrepreneur of the Year, the 2006 Organic Semiconductor Industry Awards Start-Up of the Year, and A Top 50 Nanotechnology Start-Up by Lux Research.

For more information about Plextronics, visit http://www.plextronics.com/.