Lithium Technology (LTC) has signed a development and marketing agreement with Exide Technologies for innovative lithium ion battery systems. It is anticipated that the first lithium-ion system to be developed by the parties will be utilized in network power back-up applications. The system will be part of a new modular architecture that Exide has developed, and will be built on the cell technology and chemistry that LTC has developed. This system will be used in rack mounted and/or central office applications. It is expected that testing of the new system will commence at the beginning of 2006, with marketing efforts to follow by the summer of 2006.