Energy Conversion Devices Reports Revenues of $66 Million and Earnings Per Share of $0.03 for Third Quarter of Fiscal 2009

Market Headwinds Continue, Cutting Back Costs and Production

Company Maintains Focus on Demand Creation, Positioning for Future Growth

ROCHESTER HILLS, Mich., May 11 -- Energy Conversion Devices, Inc. (ECD) , the leading global manufacturer of thin-film flexible solar laminate products for the building integrated and commercial rooftop markets, today announced financial results for its third quarter of fiscal 2009, ended March 31, 2009.

Total consolidated revenues for the quarter were $66.0 million, compared to $70.0 million in the third quarter of fiscal 2008 and $103.1 million in the second quarter of fiscal 2009. Solar product sales were $59.7 million compared to $64.9 million in the same quarter last year, and $97.3 million in the second quarter of fiscal 2009.

Net income for the third quarter was $1.3 million or $0.03 per fully diluted share compared to net income of $7.0 million or $0.17 per fully diluted share in the year-ago period. This compares to net income of $14.2 million or $0.33 per fully diluted share in the second quarter of fiscal 2009.

Third quarter net income and per-share figures include preproduction costs of $1.3 million or $0.03 per share, and restructuring costs of $139,000 or less than $0.01 per share. Gross margin on solar product sales in the third quarter was 29.2 percent and consolidated gross margin was 31.6 percent. United Solar Ovonic produced 33.3 MWs of solar laminates in the third quarter.

For the nine months ended March 31, 2009, total consolidated revenues were $264.9 million compared to $173.5 million in the prior year. Solar product sales were $246.4 million for the first nine months of fiscal 2009 compared to $154.5 million for the prior year. Net income for the first nine months of fiscal 2009 was $28.2 million or $0.66 per fully diluted share versus a net loss of $6.0 million or a net loss of $0.15 per fully diluted share in the year-ago period. Cumulative net operating cash flow for the first nine months of fiscal 2009 was $33.7 million versus $12.5 million during the first nine months of fiscal 2008.

Mark Morelli, ECD's president and chief executive officer said, "The global market continues to be difficult, with the biggest challenge being the sufficiency of project financing and our customers' continued access to capital. We are actively managing our business through this uncertain period by focusing on demand creation, preservation of capital, and reduction of costs. We are also working more closely with our downstream partners so that we are well-positioned for continued growth as the economy recovers."

Conference Call / Webcast Details

Management of Energy Conversion Devices will review these financial results on a conference call on Monday, May 11, 2009, at 10:00 a.m. ET. The dial-in number for the live audio call is 877.858.2512 or 706.634.6076 (international) with conference ID number 97059907. The conference call will be webcast live over the Internet and can be accessed in the Investor Relations - Conference Calls section of the company's website at OVONIC.

An audio replay of the call will be available approximately two hours after the conclusion of the call. The audio replay will remain available until 11:59 p.m., May 13, 2009, and can be accessed by dialing 800-642-1687 or 706-645-9291 (international), with conference ID number 97059907. The webcast will also be archived on the company's website.