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Axion Power International, Inc to discuss Worldwide Supply Agreement With Exide Technologies for PbC(R) Batteries - Final.

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OPERATOR: Good day, ladies and gentlemen, and welcome to the Axion Power International update call. My name is Mary and I will be your coordinator for today. At this time all participants are in listen-only mode. We will be facilitating a question-and-answer session towards the end of this conference. (Operator Instructions) As a reminder this call is being recorded for replay purposes.

I would now like to turn the presentation over to your host for today's call, Mr. Rudy Barrio of Allen & Caron Investor Relations. Please proceed, sir.

RUDY BARRIO, IR, ALLEN & CARON, INC.: Thank you, Mary. Good afternoon and welcome to this Axion Power investor conference call. As you know, Axion announced a definitive memorandum of understanding with Exide Technologies yesterday evening. On this call Axion's CEO, Tom Granville, will make some comments and then immediately following Tom's statement we will conduct a Q&A session with all participants.

As mentioned by Mary, I am Rudy Barrio of Allen & Caron Investor Relations. Before we start this call there are a couple of items I would like to cover. Many of you received a copy of the press release announcing the Company's supply agreement with Exide Technologies. It was released yesterday at 5:37 p.m. Eastern.

If you did not receive a copy of the press release, it is posted on Axion Power's website at www.AxionPower.com and in the Client section of our website at www.AllenCaron.com. You may also call our office in New York at 212-691-8087 and we will e-mail it to you right anyway. It is also posted on Yahoo Finance and many other places on the Internet.

As mentioned earlier, this call is being recorded. A replay will be available shortly after the call for seven days and may be accessed from North America by calling 888-286-8010 and entering pass code 88400108. International callers should dial 617-801-6888.

This call is also being broadcast live over the Internet and may be accessed via Axion Power's website or Thomson Reuters' website. A replay of the webcast will be available immediately following the call and will continue for seven days.

Before we begin this call we would like to remind everyone of the Safe Harbor statement under the Private Securities Litigation Reform Act of 1995. Some of the statements made during this call may contain forward-looking statements. We advise you to read the cautionary note regarding forward-looking statements in Axion's press release and the Risk Factors section of the Company's most recent annual report, Form 10-K, filed with the Securities and Exchange Commission on April 1, 2009.

I would now like to turn the call over to Axion Power's CEO, Tom Granville. Congratulations and good afternoon, Tom.

TOM GRANVILLE, CEO, AXION POWER INTERNATIONAL: Good afternoon, Rudy, and, ladies and gentlemen, welcome to the call to discuss our supply contract agreement with Exide Technologies. We are very excited, as you can well imagine, about this news. It's something that has been a long time coming.

We first started meeting more than 14 months ago. The first meeting took place here at Axion and then we met several times both at Exide in Alpharetta, Georgia, and also Exide came up to meet with us here at Newcastle on several occasions. We are very happy that we have finally come to an agreement here with Exide, a long-term agreement. They will be a fine strategic partner for us I am sure, one of our strategic partners, and a very important one to us.

Because of the contractual agreement between the parties and the terms of that agreement will not be discussing dollar amounts or number of units involved in this agreement, but rather we will discuss the information that was covered in our mutual press release. I would like to talk about potential markets out there and real markets for our product.

Those of you who have been with us for a while know what our vision was, know the markets that we were interested in pursuing. Exide shares that vision with us. This agreement, we feel, is a validation of our technology and the market potential of that technology -- the market potential for our proprietary PbC carbon electrode battery.

We have application in the electric car market; grid buffering market, including power quality, low leveling, peak shaving; in the solar markets, solar and wind. We are, after all, the enabling technology. We allow those technologies to work by providing low cost storage. Military and Marine.

Exide is a $3.5 billion company with operations in 80 countries. Their sales force is something that we plan to leverage as we move our product forward and they move our product forward. You know that our long-term strategy was to produce the product, take it out to end-users, show the applicability for it in various markets, and then come back to the other lead acid battery companies as we sought to max out our plant and sell the proprietary negative electrode to them.

Well, we have short-circuited that somewhat. That is still our long-term plan, but we now have a two-pronged attack that this agreement has allowed us to partner very early on with one...

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