1. X PRIZE Leadership Summit Technology Panel 28 July 2010 Jeff Kessen

2. A123 Systems, Inc. A123 Systems is a leading U.S. developer and manufacturer of advanced high power, safe and long-life lithium-ion energy storage solutions for next-generation applications in the transportation, electric grid and consumer markets Corporate headquarters: Watertown, Massachusetts 1600+ employees worldwide Mass producing millions of batteries per year >1,000,000 square feet of manufacturing facilities in China, Korea and United States Investing ~$1B+ in capacity (2009 to 2012) NASDAQ (AONE) since 9/2009 2

4. Reduced emissions

5. Energy independence

6. Lighter-weight components

7. Fuel efficiency

8. Improve performance

9. Reduce emissions

10. Reduce toxic battery chemicals

11. Increase grid reliability

12. Enable Wind and Solar

13. Increase plant efficiency/utilizationDrivers 3

14. Program in FocusBAE Systems’ HybriDriveTM More than 40 million miles of revenue service 1400+ systems currently logging well over 3 million miles / month More than 2 years of operation, on-track for 6 yr design life* * This application operates 16 hours per day, up to 7 days per week

15. Program in FocusNavistar eStarTM All-electric delivery truck 100 mile range with 4,400 lb payload capacity First deliveries made to FedEx in May, 2010

16. Program in Focus12MW Electric Grid Stabilization in Chile

17. When will consumers adopt electric vehicles? Battery Cost Median battery prices will decrease dramatically in the next 5 years 100% 50% Today’s market prices vary widely 2016 2014 2012 2010

18. X PRIZE Leadership Summit Technology Panel 28 July 2010 Jeff Kessen