Maxwell Technologies And Yeong-Long Technologies Expand Relationship To Include Supplying Maxwell’s Latest Generation Ultracapacitor Electrode Material

Capacitor Manufacturer Targets High-Volume Consumer and Light Industrial Applications With Its New Line of Small Cell Ultracapacitor Products; Maxwell to Assist in Setting Up Worldwide Marketing and Distribution

March 21, 2006, San Diego, CA — Maxwell Technologies, Inc. (Nasdaq: MXWL) announced today that it has entered into an agreement to supply its latest generation of proprietary carbon powder-based ultracapacitor electrode material to Yeong-Long Technologies Co., Ltd. (YEC), for YEC’s new line of small cell ultracapacitor products, and to assist YEC in setting up worldwide marketing and distribution.

Dr. Richard Balanson, Maxwell’s president and chief executive officer, said that the multi-year supply agreement, through which YEC will source electrode material exclusively from Maxwell, expands an alliance the two companies originally formed in 2003 to manufacture and market Maxwell’s small cell BOOSTCAP® ultracapacitor products in China. YEC is a privately held capacitor manufacturer based in Taichung, Taiwan, that maintains extensive manufacturing and marketing operations in Mainland China.

“YEC has identified some very significant opportunities in consumer and light industrial electronics for small cell ultracapacitor form factors that we don’t offer, including sub-0.1-farad ‘coin cells’ that are sold in millions of units per month.” Balanson said. “Participating in these high-volume markets as an electrode supplier and helping YEC to market and distribute its products makes good business sense for Maxwell. The worldwide ultracapacitor market is real and increasingly diverse, so we are moving aggressively to capitalize on our technology leadership, both through our own products and capabilities and through alliance partners such as YEC.”

Ted Lin, YEC’s president and general manager, said that being able to source electrode material from Maxwell will expedite introduction of several products for which YEC sees immediate demand.

“Maxwell was our first choice as an electrode supplier, both in terms of material quality and availability, so we are pleased to have been able to build on the existing relationship between our companies,” Lin said. “With a reliable source of high quality, low-cost, electrode material we can ramp production quickly and work through existing and new marketing channels to provide ultracapacitor-based energy storage and power delivery solutions for a wide range of consumer and industrial electronics applications.”

Balanson said that Maxwell is expanding its electrode production capacity at its San Diego plant, and is actively pursuing additional outlets for its unique electrode material on a non-exclusive basis.

Forward Looking Statements



Statements in this news release that are “forward-looking statements” are based on current expectations and assumptions that are subject to risks and uncertainties. Actual results could differ materially because of factors such as:



* the company’s history of losses and uncertainty about its ability to achieve or maintain profitability, or to obtain sufficient capital to meet customer demand or other corporate needs;
* development and acceptance of products based on new technologies;
* demand for original equipment manufacturers’ products reaching anticipated levels;
* general economic conditions in the markets served by the company’s products;
* cost-effective manufacturing of new products;
* the impact of competitive products and pricing;
* risks and uncertainties involved in foreign operations, including the impact of currency fluctuations;



For further information regarding risks and uncertainties associated with Maxwell’s business, please refer to the “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Risk Factors” sections of our SEC filings, including, but not limited to, our annual report on Form 10-K and quarterly reports on Form 10-Q, copies of which may be obtained by contacting Maxwell’s investor relations department at (858) 503-3434 or at our investor relations website at www.maxwell.com/company/investors/sec_filings.html

All information in this release is as of March 21, 2006. The company undertakes no duty to update any forward-looking statement to conform the statement to actual results or changes in the company’s expectations.

Maxwell is a leading developer and manufacturer of innovative, cost-effective energy storage and power delivery solutions. Our BOOSTCAP® ultracapacitor cells and multi-cell modules and POWERCACHE® backup power systems provide safe and reliable power solutions for applications in consumer and industrial electronics, transportation and telecommunications. Our CONDIS® high-voltage grading and coupling capacitors help to ensure the safety and reliability of electric utility infrastructure and other applications involving transport, distribution and measurement of high-voltage electrical energy. Our radiation-mitigated microelectronic products include power modules, memory modules and single board computers that incorporate powerful commercial silicon for superior performance and high reliability in aerospace applications.

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Maxwell Technologies Inc.

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