1. Energy Conversion Devices (ENER) Griffin Voth 2-23-2006

2. Company Profile Energy Conversion was co-founded by Stanford R. Ovshinsky and Iris M. Ovshinsky in 1960. Based in Rochester Hills, Michigan. Engages in the invention, engineering, development, and commercialization of materials, products, and production technology in the fields of alternative energy technology and information technology. 746 employees

3. Product Offering 3 business segments, 4 core commercial businesses Competitive products: Photovoltaic (PV) Solar panels and nickel-metal-hydride (NiMH) batteries FLASH memory replacement, Phase Change Memory Fuel Cell development

4. Financial Highlights

5. Trend Analysis Market Price $45.02 52 Week High: $57.84 Outperforming SPX by large amount.

6. Investment Pros Recent presidential visit to Ovonics solar division touting future of solar technology. Current energy costs Zero Long term debt, and very little short term debt. FLASH memory replacement.

7. Investment Cons Inconsistent Earnings Negative Earnings Old management

8. Industry Profile ENERAFCOFCELINDUSTRY Market Cap:1.39B308.92M485.99M188.54M Employees:746625335284 Qtrly Rev Growth:-74.60%11.10%-10.30%17.50% Revenue (ttm):86.24M191.54M30.37M70.54M Gross Margin (ttm):16.18%26.46%-111.58%44.19% EBITDA (ttm):-24.70M3.35M-63.31M5.11M Operating Margins:-37.65%-4.91%-230.09%6.82% Net Income (ttm):-30.11M-14.78M-73.01M2.00M EPS (ttm):-1.032-0.985-1.5390.22 P/E (ttm):N/A 25.7 PEG (5 yr expected):N/A2.57N/A1.48 P/S (ttm):15.41.6515.992

9. Company Growth Providing Batteries for Saturn VUE Green Line Hybrid SUV Licensing Agreement with Samsung to Develop PCM (Phase Change Memory) New 25Mw Facility Further Capacity Planed Changing Company Focus to Bring Commercialized Products to Market.

10. Valuation Summary Company Pays no Dividends Inconsistent Earnings Mean target price $51.33

11. CAPM Risk Free 4.606% Mkt Premium 6.394% E(r) 13.38% – 14.20%

12. DCF Model 20062007200820092010 Sales $ 65,449,279.98 $ 82,466,092.77 $ 103,907,276.90 $ 130,923,168.89 $ 164,963,192.80 COGs $ 53,997,379.80 $ 56,697,248.79 $ 59,532,111.23 $ 62,508,716.79 $ 65,634,152.63 Cap Exps $ (3,369,352.68) $ (3,638,900.89) $ (3,930,012.97) $ (4,244,414.00) $ (4,583,967.12) Net $ 8,082,547.50 $ 22,129,943.09 $ 40,445,152.70 $ 64,170,038.10 $ 94,745,073.05 Net @ Present $ 7,077,723.15 $ 16,969,572.71 $ 27,158,288.31 $ 37,732,320.72 $ 48,784,646.24 Sumation $ 137,722,551.14 Value of Perp $ 1,528,886,123.07 Total Value $ 1,666,608,674.20 Shares Outstanding30,880,000.00 Value Per Share $ 53.97

13. Valuation Conclusion Averaging 3 Sales forecasts (22%-28%) Yields $49.47 Large Feasible Range Dependent on Sales Strength

14. Takeaways Huge Potential $13 Off 52 Week High Good Time to Buy on Weakness Buy Under $45