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Maxwell Technologies Announces 91 Percent Increase in Net Income for 1st Quarter of Fiscal 1999
SAN DIEGO--(BUSINESS WIRE)--Nov. 18, 1998--

Record First Quarter Results Include 38 Percent Increase in Sales

Maxwell Technologies Inc. (NMS:MXWL) today announced record sales and earnings for its fiscal 1999 first quarter, ended Oct. 31, 1998.

Sales for the quarter were $38.2 million, a gain of 38% over sales of $27.8 million in the same period a year ago, resulting in a 91% increase in net income to $2.7 million from $1.4 million last year. Diluted earnings per share rose by 50% to $.30 from $.20, on 27% more shares.

"The first quarter's results were a continuation of the strong performance trend of the past two years, with the company experiencing growth across the board," said Kenneth F. Potashner, chairman of Maxwell Technologies. "In addition to growth in our traditional product areas, our revenue base has been enhanced by major contract wins by our Energy Products, I-Bus, and Systems subsidiaries."

Added Maxwell's Interim Chief Executive Officer Tom Horgan: "Certain activities in the first quarter could have a significant impact on the company's future. On Oct. 6, the Board of Directors of Siemens AG and the partnership committee of Siemens Matsushita Components GmbH approved a broad-based agreement involving our ultracapacitors that could bring up to $30 million in royalties to Maxwell over the next 10 years, and support our program to move to high volume ultracapacitor production. In fact, we are already shipping ultracapacitors to Siemens under the agreement."

"On Oct. 7, we announced that Maxwell won a $2 million award under the Advanced Technology Program (ATP), administered by the National Institute of Science & Technology, to develop new materials and designs for the 'next generation' of ultracapacitors. We believe that the company's overall product development effort, including the ATP funding, will enable Maxwell to maintain its ultracapacitor leadership role for years to come. Maxwell's PowerCache(TM) ultracapacitors have been shipped to many manufacturers worldwide who are interested in designing the PowerCache(TM) ultracapacitors into their products."

On the contract front, the Systems business received a multi-year $6 million award during the quarter for development work on a large pulsed power system, as well as several projects that will broaden its presence in the commercial space business. I-Bus won two awards with an estimated multi-year value of $11 million, supporting their role as the leader in the design and production of customized computer telephony platforms for OEMs. The power distribution systems business received contracts with an estimated multi-year value of $5.5 million from two of the world's largest manufacturers of CT scanners and nuclear medicine devices for an innovative new power delivery product.

Continued Horgan: "By carefully selecting strategic partners and contract opportunities in markets where our revolutionary technologies can be quickly targeted, we have been able to build what we believe is a solid platform for ongoing growth. Our priority now is to continue our program of ramping production in order to meet the growing demand for our products."

Maxwell Technologies is a leader in pulsed power technologies, providing pulsed power based systems and components for a wide range of applications and research and development for both commercial customers and the U.S. government. The company's advanced technology solutions address diverse markets such as utilities, telecommunications, medical equipment and products, food processing and packaging, and transportation.

The company also offers industrial computers and subsystems, primarily to OEMs in computer telephony and other markets, and software products and services, both for government research and for various commercial applications.

Except for historical information contained herein, the matters discussed in this news release are forward-looking statements that involve risks and uncertainties, including product development based on new technologies, applications and acceptance of new products in major markets, demand for OEM's products reaching anticipated levels, the impact of competitive products and pricing, the successful integration of acquired businesses, risks and uncertainties involved in foreign operations, and other risks detailed from time-to-time in the company's SEC reports, including the report on Form 10-K for the year ended July 31, 1998. Actual results may differ materially from those projected. These forward-looking statements represent the company's judgment as of the date of this release. The company disclaims, however, any intent or obligation to update these forward-looking statements.

Maxwell Technologies Inc. (MXWL)
Summary of Results
($ in thousands except for per share amounts)
Quarter Ended Oct. 31,
1998 1997
Consolidated Statement of
Sales $38,172 $27,756
Cost of Sales 25,466 18,481
------- -------
Gross Profit 12,706 9,275
Operating Expenses:
Selling, general and
administrative expenses 8,211 6,132
Research and development
expenses 1,709 1,689
------- -------
Total operating expenses 9,920 7,821
------- -------
Operating income 2,786 1,454
Interest and other (212) 57
------- -------
Income before income
taxes and minority
interest 2,998 1,397
Income tax provision 100 --
Minority interest in net
income (loss) of subsidiaries 195 (19)
------- -------
Net income $2,703 $1,416
======= =======
Earnings per share:
Basic $0.32 $0.23
======= =======
Earnings per share:
Diluted $0.30 $0.20
======= =======
Weighted average shares
of common stock
and common stock equivalents
used in calculating
diluted earnings per share
(in thousands) 8,794 6,912
======= =======
CONTACT: Hilary Kaye Associates
Mike Kilroy, 714/426-0444
Investor Relations
Larry Selwitz, 949/645-8410
Eugene Anton, 714/426-0228
19:50 EST NOVEMBER 18, 1998

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