Konarka Technologies Acquires Quantum Solar Energy Linz (QSEL)

Acquisition Makes Konarka Worldwide Leader in Organic Photovoltaics

LOWELL, Mass. and Linz, Austria — February 10, 2003 — Konarka Technologies, Inc. (KTI), an innovator in the development of flexible, polymer and nanoparticle-based photovoltaic (PV) technology, announced today that it has acquired Quantum Solar Energy Linz (QSEL), based in Linz, Austria, from Linz AG, the regional utility company. The company has been re-named Konarka Austria Forschungs- u. EntwicklungsgesmbH (Forschungs- u. Entwicklungs is translated as Research and Development). With this acquisition, Konarka is the worldwide leader in organic photovoltaics.

Konarka CEO Dr. William Beckenbaugh remarked, “We consider organic solar cell technology as a complement to our dye-based solar cell nanotechnology and are confident that organic PV will be a commercial success. One of the essential attributes of this technology is its compatibility with Konarka’s expertise in roll-to-roll manufacturing and low-cost processing. The organic PV technology also opens the door for a hybrid solar cell, for which we have already applied for patent rights, that combines the advantages of our nanocrystalline titanium dioxide with conducting polymers.”

“The combination of Konarka’s USA operations and our leading materials technology will accelerate commercialization of this unique technology,” said Dr. Erhard Glötzl, Managing Director of Linz AG.

According to Howard Berke, Konarka’s Chairman and co-founder, “This acquisition is further evidence of our commitment and determination to be the market leader in third generation, flexible, low-cost photovoltaics. Our commercialization roadmap for the polymer technology includes new applications and form factors to serve our customers with the most appropriate technology for their applications.”

Konarka Austria Forschungs- u. EntwicklungsgesmbH has benefited from a close working relationship with the Linz Institute for Organic Solar Cells (LIOS), established by Dr. N. Serdar Sariciftci at Johannes Kepler University. Dr. Sariciftci is regarded as one of the top scientists worldwide in the field of conducting polymers as applied to photovoltaics. He studied with Nobel Laureate Dr. Alan Heeger at the University of California Santa Barbara, where he and Dr. Heeger were co-inventors of technology related to conducting polymers.

As a result of the acquisition, Linz AG has become a shareholder in Konarka Technologies, Inc. Dr. N. Serdar Sariciftci has become a member of Konarka’s Scientific Advisory Board. About Konarka Technologies Founded in June of 2001, Konarka Technologies, Inc. is an advanced research and development company, dedicated to the commercialization of power solutions based on a proprietary, solid-state, flexible, low cost photovoltaic (PV) platform. Unlike other photovoltaic technologies that incorporate glass, Konarka's technology is polymer-based, making it lightweight and portable. The company's PV module technology converts both sunlight and indoor light into direct current (DC) electrical energy and can be incorporated into a wide range of applications, creating an economical, versatile power source. Konarka has over 20 patents pending and issued. The company has sponsored research and worldwide intellectual property rights to PV related nanotechnology and materials technologies from leading universities around the world, including Ecole Polytechnique Fédérale de Lausanne (Lausanne, Switzerland), Johannes Kepler University (Linz, Austria), University of California Santa Barbara, and the University of Massachusetts. A Board of scientific and business advisors, including Nobel Laureate Alan Heeger, also a founding member of the Board of Directors, complements the company’s talented technical staff. Konarka Technologies is headquartered in Lowell, Mass. For more information, visit Konarka's web site at www.konarkatech.com. About Konarka Austria Forschungs- u. EntwicklungsgesmbH Founded in 1997 as Quantum Solar Energy Linz (QSEL), Konarka Austria Forschungs- u. EntwicklungsgesmbH is dedicated to the development of photovoltaics based on conducting polymers. Working in collaboration with the Linz Institute for Organic Solar Cells (LIOS), Konarka Austria Forschungs- u. EntwicklungsgesmbH has achieved the world’s highest reported solar conversion efficiency for an organic cell. The company has filed for several patents in the field.