December 4, 2009

Rochester Hills, MI, USA: Energy Conversion Devices to Cut 400 Employees

Energy Conversion Devices has initiated a restructuring plan to better align operating expenses with near-term revenue expectations while positioning the company to more efficiently leverage future growth opportunities. The specific restructuring actions include additional workforce reductions and the previously announced restructuring related to ECD's acquisition of Solar Integrated Technologies.

In connection with all restructurings, employees will be reduced by approximately 400, representing approximately 20 percent of ECD's combined workforce.

These actions are expected to create annualized savings of approximately $17 million, with half to be realized in fiscal 2010. ECD expects to record related charges of approximately $9 million in fiscal year 2010, including the previously announced restructuring costs related to ECD's acquisition of Solar Integrated Technologies. This restructuring plan will be completed in fiscal 2010.

"We are committed to reducing our cost structure, while still satisfying the increasing demand for our products in the marketplace," said Mark Morelli, ECD's President and Chief Executive Officer. "We expect our business will strengthen in the second half of our fiscal year, and these steps should lower our overall operating costs for both the near and long terms, and position our company to better capitalize on growth opportunities in our rooftop solar markets."

Further details about: Energy Conversion Devices