ROCHESTER HILLS ? The losses continue to decline for alternative energy focused Energy Conversion Devices.

The company reported a net loss of $2.3 million (or $0.06 per share) on revenues of $27.2 million in the first quarter of fiscal 2007, as compared to a net

loss of $6.5 million (or $0.22 per share) on revenues of $23.2 million in

the first quarter of fiscal 2006.

“We are building on the momentum from last year and beginning our 2007

fiscal year with a solid first quarter of improved performance,” said

Chairman and CEO Robert C. Stempel. “Our new manufacturing capacity is

coming online at just the right time for growing demand in our United Solar

Ovonic segment, and increasing commercial acceptance of products in our

Cobasys and Ovonyx joint ventures presents exciting opportunities.”

Some snap shots of the ECD balance sheet show:

ECD Ovonics’ wholly owned subsidiary United Solar Ovonic had

operating income of $1.5 million on revenues of $23.9 million in the first

quarter of fiscal 2007, as compared to operating income of $1.7 million on

revenues of $19.4 million in the first quarter of fiscal 2006. The first

quarter 2007 fiscal year results include a $1 million increase in the

allowance for uncollectible accounts for one of our major customers.

United Solar Ovonic’s gross profit margin was 24 percent in the first

quarter of fiscal 2007, up from 20 percent in the first quarter of fiscal 2006

reflecting increased production and sales.

“We continue to be positive about the future of our business and the markets in which we participate. Demand for solar products is expanding globally, including here in the United States, with United Solar Ovonic strengthening its competitive position and growing through aggressive expansion plans,? Stemple said. ?Our Cobasys joint venture is at the forefront of the hybrid vehicle market, which represents the most exciting new market in the automotive industry. And, of course, our Ovonyx joint venture’s OUM technology is on the cusp of commercialization in the global semiconductor market. Overall, we see many exciting opportunities for ECD Ovonics’ technologies and products that are increasingly needed in our changing world.”

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