Slater-Backed Venture, Modular Energy Devices, Receives Significant Investment from EnerSys

World’s Largest Manufacturer of Industrial Batteries Invests in Rhode Island-based Business

Providence, R.I., March 13, 2006 — Slater Technology Fund today announced that one of its portfolio companies, Modular Energy Devices, Inc. ( ModEnergy), has received a significant funding commitment from EnerSys, the world’s largest supplier of industrial batteries. EnerSys’ purchase of a majority interest in ModEnergy will enable it to expand its product development and manufacturing capabilities as well as pursue a wider range of new applications for its technologies.

ModEnergy, based in Westerly, Rhode Island, has developed a proprietary method for assembling lithium-ion cells into battery systems that are safer, more reliable and more cost-effective than competitive products currently available. Its large-format, lithium-ion rechargeable batteries are used in aerospace and defense applications, as well as cable, telecommunications, standby power and other commercial applications.

EnerSys is the global leader in stored energy solutions for industrial applications. Based in Reading, Pennsylvania, the $1.1-billion company is the largest industrial battery manufacturer in the world, operating 20 manufacturing and assembly plants worldwide with over 10,000 customers in over 100 countries.

“The investment in ModEnergy by EnerSys represents a significant validation of ModEnergy’s novel approach to the business of stored energy solutions,” says Richard G. Horan, Managing Director of the Slater Technology Fund. “In addition to its investment, the management and operational capabilities that EnerSys brings as a strategic investor will enable ModEnergy to pursue its goal of becoming a leading player in the fast-growing, lithium-ion segment of the battery market.”

“We are excited about the opportunities that ModEnergy presents,” commented John Craig, Chairman, President and CEO of EnerSys. “The ModEnergy lithium technology opens new markets and allows us to offer our customers new and innovative product offerings.”

ModEnergy was co-founded in May, 2002 by Stephen Eaves, Dr. K.M. Abraham and Farshid Bakhtyari. In January 2005, the company hired Mark A. Dingley as CEO. Slater has provided an aggregate of $310,000 in funding to support the company’s launch, initially investing at the company’s founding and subsequently upon the hiring of its CEO.

In connection with the investment by EnerSys, Sanjay Deshpande, vice president of aerospace and defense at EnerSys, was appointed vice president and general manager of ModEnergy. The co-founders and Mr. Dingley remain with ModEnergy as officers or consultants to the company. With proceeds of this most recent financing, the company is planning to expand its staffing in new facilities to be located in Rhode Island.

“We have been working closely with EnerSys for the past six months and we feel the strategic fit is excellent,” says Mark Dingley. “EnerSys provides us with industry expertise and access to markets that will dramatically advance the growth of our business.”

About Slater Technology Fund
The Slater Technology Fund supports the development of emerging industries with potential for significant long-term growth within the State of Rhode Island. Slater focuses its resources on the support of entrepreneurs who have the vision, leadership and commitment to build substantial commercial enterprises. Slater typically invests at the inception stage in the development of a new venture, often based upon ideas and technologies originating in academic institutions and/or government research laboratories located within the region. In most cases, investments are premised upon the possibility of raising substantial follow-on financing, from venture capital investors or from strategic partners, with a view toward accelerating the generation of significant numbers of high-value, high-wage jobs over the intermediate to longer-term.

About Modular Energy Devices, Inc.
Modular Energy Devices, Inc. is engaged in the development, manufacture and licensing of advanced batteries and battery management devices. The company’s mission is to provide safe and affordable lithium-ion battery systems, based on a unique design that will liberate the market for large batteries from its dependence on low-performance lead-acid technology. The company’s main product line includes large lithium-ion batteries targeted at applications in telecommunications backup power, uninterruptible power supplies for portable power systems, and advanced commercial and military vehicles.

About EnerSys
EnerSys, the world leader in stored energy solutions for industrial applications, manufactures and distributes reserve power and motive power batteries, chargers, power equipment, and battery accessories to customers worldwide. Reserve power batteries are used in the telecommunication and utility industries, uninterruptible power suppliers, and numerous applications requiring standby power. Motive power batteries are utilized in electric forklift trucks and other commercial electric-powered vehicles. The company also provides aftermarket and customer support services to its customers from over 100 countries through its sales and manufacturing locations around the world.

For More Information
Laura Nelson
SVM Public Relations
(401) 490-9700
laura.nelson@svmpr.com