A123 Systems Revises 2011 Revenue Guidance; Announces Date for Third Quarter Results Conference Call and Webcast

WALTHAM, Mass., Nov. 4, 2011 (GLOBE NEWSWIRE) -- A123 Systems, Inc. (Nasdaq:AONE), a developer and manufacturer of advanced Nanophosphate® lithium ion batteries and systems, today revised revenue guidance range for the full year 2011 due to unanticipated developments that will impact fourth quarter revenue. A123 now projects that 2011 revenue will be in the range of $165 million to $180 million, which would represent 70 percent to 85 percent revenue growth from 2010. A123's previous 2011 revenue guidance range was $210 million to $225 million. The reduction in full-year revenue guidance will be reflected principally in the fourth quarter.

"While we continued to increase our production ramp in the third quarter, we are adjusting our 2011 revenue expectations due to an unexpected reduction in orders for battery packs from Fisker Automotive for the fourth quarter as it balances inventory levels from all suppliers," said David Vieau, CEO of A123 Systems. "Our relationship with Fisker remains strong, and we expect that this reduction in volume is temporary as we understand the Karma plug-in hybrid electric vehicle has received EPA certification as well as an all-electric range rating of 51.6 miles from the European regulatory body Technischer Ueberwachungs Verein (TUV), clearing the way for vehicles sales. We are executing a plan that we believe will manage costs in the near term while allowing us to maintain the manufacturing and operational capabilities required to quickly ramp up production."

A123 will release its third quarter 2011 financial results for the period ended September 30, 2011 before financial markets open on Wednesday, November 9, 2011. On that day, management will hold a conference call with supporting slides at 8:00 a.m. ET to review and discuss the Company's results for the third quarter. A recording will be available two hours after the call and accessible at http://ir.a123systems.com/.

The recording will be archived on A123 Systems' Web site for a period of one year. 

About A123 Systems

A123 Systems, Inc. (Nasdaq:AONE) is a leading developer and manufacturer of advanced lithium-ion batteries and energy storage systems for transportation, electric grid and commercial applications. The company's proprietary Nanophosphate® technology is built on novel nanoscale materials initially developed at the Massachusetts Institute of Technology and is designed to deliver high power and energy density, increased safety and extended life. A123 leverages breakthrough technology, high-quality manufacturing and expert systems integration capabilities to deliver innovative solutions that enable customers to bring next-generation products to market. For additional information please visit www.a123systems.com.

The A123 Systems, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=6600

Safe Harbor Disclosure

This press release contains "forward-looking statements" within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, including but not limited to, statements regarding the Company's revenue expectations for the full year of 2011, expectations regarding production volumes for the second half of 2011, the Company's ability to drive efficiencies in its manufacturing processes, and the Company's expectations regarding its future profitable growth.       

These forward-looking statements are made as of the date they were first issued and were based on current expectations, estimates, forecasts and projections as well as the beliefs and assumptions of management. Words such as "expect," "anticipate," "should," "believe," "hope," "target," "project," "goals," "estimate," "potential," "predict," "may," "might," "could," "intend," variations of these terms or the negative of these terms and similar expressions are intended to identify these forward-looking statements. Forward-looking statements are subject to a number of risks and uncertainties, many of which involve factors or circumstances that are beyond A123 Systems' control.

A123 Systems' actual results could differ materially from those stated or implied in forward-looking statements due to a number of factors, including but not limited to, the timing and terms of the Company's U.S. government funding, delays in customer and market demand for and adoption of the Company's products in the transportation, electric grid and other target markets, the Company's ability to expand its U.S. manufacturing capacity and ramp production to address anticipated market demand, delays in the development of the Company's new products, the Company's ability to attract new customers and retain existing customers, continued delays in volume production by the Company's customers, increases in production start-up expenses, interruption in the supply of key materials, adverse economic conditions in general and adverse economic conditions specifically affecting the markets in which the Company operates, failure to negotiate acceptable contract terms with new customers or early termination of the Company's agreements with key customers, and other risks detailed in A123 Systems' other publicly available filings with the Securities and Exchange Commission.

Past performance is not necessarily indicative of future results. The forward-looking statements included in this press release represent A123 Systems' views as of the date of this press release. The Company anticipates that subsequent events and developments will cause its views to change. A123 Systems undertakes no intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. These forward-looking statements should not be relied upon as representing A123 Systems' views as of any date subsequent to the date of this press release.