Texaco and ECD Restructure NiMH Battery Joint Venture - Texaco Ovonic, LLC

Each will have a 50 percent interest in the new entity, Texaco Ovonic

Troy, Mich., October 12, 2000 -- Energy Conversion Devices, Inc. (ECD) (NASDAQ:ENER) announced today that Texaco Inc. (NYSE:TX) and Ovonic Battery Company, Inc. (Ovonic Battery), a subsidiary of ECD, signed a Memorandum of Understanding to continue the business of GM Ovonic in a new entity, to be named Texaco Ovonic, LLC, in which General Motors' interest was converted and restructured so that ECD and Texaco each will have a 50 percent interest in the joint venture. The MOU was signed concurrent with an MOU signed between Texaco and GM on Oct. 10, 2000.

GM Ovonic was formed in 1994 between GM and Ovonic Battery to manufacture proprietary Ovonic NiMH batteries for electric vehicles. Ovonic Battery is the originator of NiMH batteries and was the first company to be awarded a contract by the United States Advanced Battery Consortium (USABC). GM decided to team with Ovonic Battery to jointly develop the production processes and manufacturing equipment for commercialization of the NiMH batteries which have become the enabling technology for electric and hybrid electric vehicles.

Consistent with GM's commitment to focus on its core vehicle business, it opted to completely exit the component business, most recently spinning off the Delphi vehicle component operations. This strategy provided an opportunity for Texaco to further expand its alternate energy business through its acquisition of GM's share of GM Ovonic. In May, Texaco had made a 20 percent investment in ECD and, in September, formed its first 50-50 joint venture with ECD in fuel cells. Texaco is planning to establish a joint venture with ECD based on Ovonic solid storage of hydrogen.

Texaco Ovonic plans to expand the applications of the NiMH battery to include hybrid electric vehicle and fuel cell electric vehicle batteries as well as starter, lighting and ignition batteries, including the important new 36-42 volt applications. Non-automotive applications are also planned.

In a joint statement, Stanford R. Ovshinsky, president and CEO of ECD and CEO of Ovonic Battery, and Robert C. Stempel, chairman of ECD and Ovonic Battery, said, "This is a great transition for Ovonic Battery. With the broad reach and marketing expertise of Texaco, a global energy leader, we will be able to fully commercialize the Ovonic NiMH battery and expand its applications."

Operating in over 150 countries worldwide, Texaco explores for and produces crude oil, natural gas and natural gas liquids; manufactures and markets high-quality fuels and lubricants; operates trading, transportation and distribution facilities; and produces alternate forms of technology for the conversion of coal, petroleum coke and other low-value hydrocarbons into a clean synthesis gas, which is used for the production of electric power as well as chemical products and industrial gases, including hydrogen.

ECD and its network of business partners and licensees are manufacturing cutting-edge products in three rapidly growing global markets: information technology, energy generation and energy storage. ECD designs and builds manufacturing machinery that incorporate its proprietary production processes, maintains ongoing research and development programs to continually improve its products and develops new applications for its technologies. ECD's web site address is http://www.ovonic.com.

This release may contain forward-looking statements within the meaning of the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are based on assumptions which ECD, as of the date of this release, believes to be reasonable and appropriate. ECD cautions, however, that the actual facts and conditions that may exist in the future could vary materially from the assumed facts and conditions upon which such forward-looking statements are based.