Exhibit 99.1
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[LOGO] Electro Energy Inc.
CONTACTS:
Martin G. Klein Stanley Wunderlich
Chairman, CEO Consulting for Strategic Growth
Tel: (203) 797-2699 Tel: (800) 625-2236
Fax: (203) 797-2697 Fax: (212) 697-0910
E-mail: mklein@electroenergyinc.com E-mail: cfsg1@aol.com
www.electroenergyinc.com
FOR IMMEDIATE RELEASE
ELECTRO ENERGY INC. ANNOUNCES MERGER WITH
MCG DIVERSIFIED INC.
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Merger Coincides with Private Placement of Approximately $3.0 Million
DANBURY, Conn., June 9, 2004 - Electro Energy Inc. today announced the
closing of a private placement totaling approximately $3.0 million and the
simultaneous stock-for-stock merger with MCG Diversified Inc. (MCGV.OB). The
combined company will operate under the name Electro Energy Inc. and will assume
and execute Electro Energy's business plan as its sole business. Electro Energy
will retain its senior management team and three of its current directors.
Shares will be listed on the Over-the-Counter (OTC) Bulletin Board initially
under the trading symbol EEEI.OB. The company plans to apply for listing its
shares on the American Stock Exchange as soon as practicable. Following the
closing of the private placement and merger, Electro Energy has 13,397,961
outstanding shares of common stock, inclusive of shares of its series A
preferred stock that are convertible into 1,200,400 shares of common stock.
Electro Energy Inc., with its patented technology, develops and
manufactures high-power, rechargeable bipolar nickel-metal hydride (BP Ni-MH)
and nickel-cadmium (NiCd) batteries and is developing lithium batteries for use
in a wide range of applications. Electro Energy's customer base includes
government agencies and defense contractors, as well as aerospace and automotive
companies.
Today's private placement and merger transaction will enable Electro Energy
to pursue the commercialization of its technology by investing in manufacturing
capabilities and expanding sales and marketing activities.
Martin G. Klein, founder, Chairman and Chief Executive Officer, stated,
"The completion of this transaction provides Electro Energy with a public
company platform that enables future business transactions, provides additional
funding for the commercialization of our unique battery technology and is a
significant step in the company's steady progress toward revolutionizing certain
segments of the global battery market." Prior to founding Electro Energy, Mr.
Klein was one of the founding principals of Energy Research Corp., now known as
Fuel Cell Energy (NasdaqNM: FCEL).
ELECTRO ENERGY'S TECHNOLOGY
Electro Energy's bipolar nickel-metal hydride battery design, for which
seven U.S. patents and four foreign patents have been issued and for which three
additional patent applications are in process, represents a significant
departure from conventional battery configurations. Electro Energy's technology
employs nickel-metal hydride chemistry, but utilizes a cell design and electrode
fabrication technology that is significantly simpler and less costly than
conventional cylindrical and prismatic battery technologies. Electro Energy's
battery construction, which in the finished product significantly increases
performance, consists of flat wafer cells that are stacked one on top of another
to make a multi-cell battery.
Each cell consists of one positive electrode, separator layers and one
negative electrode contained in face sheets that also serve as the cell
contacts. Multi-cell batteries are constructed by stacking identical cells so
that the positive contact of one cell contacts the negative contact of the
adjacent cell. The design of Electro Energy's products offers a number of
significant advantages, including providing an ability to discharge efficiently
at exceptionally high rates, compact packaging, and lower manufacturing costs,
which are important in critical applications such as military communications,
military aircraft and space and medical applications, as well as power-consuming
applications such as hybrid electric cars, electric bicycles and scooters,
cordless power tools, load regulation and stationary energy storage.
Electro Energy has developed active relationships with U.S. government
agencies such as the U.S. Army, the Naval Air Systems Command, the U.S. Air
Force, the Ballistic Missile Defense Organization, the National Aeronautics and
Space Administration, the National Institutes of Health, the U.S. Department of
Energy, and the Partnership for a New Generation Vehicle. These agencies are not
only potential purchasers of Electro Energy's batteries but are also sources of
significant amounts of research and development funding.
ABOUT ELECTRO ENERGY:
Electro Energy, headquartered in Danbury, Connecticut, was founded in March
1992 to focus on the development and ultimate commercialization of a concept for
a bipolar nickel-metal hydride (BP Ni-MH) rechargeable battery. Since its
founding, Electro Energy has developed and owns both the patented design of BP
Ni-MH batteries and the patented production process for their manufacture.
Electro Energy has produced and delivered prototype BP Ni-MH batteries for
the U.S. Army (field radios and silent watch applications), NASA (satellites),
Partnership for a New Generation Vehicle (hybrid vehicles), NAVAIR and U.S. Air
Force (F-18 and F-16 Aircraft), National Institute of Health (NIH) (heart assist
pumps), and the Department of Energy (DOE) (distributed energy and power
quality), that have demonstrated performance advantages over existing
technologies.
Electro Energy's Colorado Springs facility, Electro Energy Mobile Products
Inc., acquired in 2003 from privately held Eagle Picher Technologies, supplies
Super NiCd's for U.S. Government satellite systems, legacy military aircraft
such as the B-52, B-1 and Cobra Helicopters, and manufactures BP Ni-MH and
industrial Ni-Cd products.
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Certain statements in this news release may contain forward-looking
information within the meaning of Rule 175 under the Securities Act of 1933 and
Rule 3b-6 under the Securities Exchange Act of 1934, and are subject to the safe
harbor created by those rules. All statements, other than statements of fact,
included in this release, including, without limitation, statements regarding
potential future plans and objectives of the companies, are forward-looking
statements that involve risks and uncertainties. There can be no assurance that
such statements will prove to be accurate and actual results and future events
could differ materially from those anticipated in such statements. Technical
complications that may arise could prevent the prompt implementation of any
strategically significant plan(s) outlined above. The companies caution that
these forward-looking statements are further qualified by other factors
including, but not limited to, those set forth in Electro Energy's Form 8-K and
MCG Diversified, Inc.'s Form 10-QSB for the period ended March 31, 2004, filed
with the U.S. Securities and Exchange Commission (available at www.sec.gov).
Electro Energy undertakes no obligation to publicly update or revise any
forward-looking statements, whether as a result of new information, future
events, or otherwise.
Pursuant to a June 1, 2004 agreement, Consulting For Strategic Growth I,
Ltd. ("CFSG") provides Electro Energy with consulting, business advisory,
investor relations, public relations and corporate development services, for
which CFSG receives a fixed monthly fee for the duration of the agreement.
Independent of CFSG's receipt of cash compensation from Electro Energy, CFSG may
choose to purchase the common stock of Electro Energy and thereafter sell those
shares at any time it deems appropriate to do so.