Maxwell Technologies Reports 3rd Quarter Financial Results

Ultracapacitor Sales Up 38%, Total Revenue Up 22% vs. Q3 2008

SAN DIEGO, Nov. 3 /PRNewswire-FirstCall/ -- Maxwell Technologies, Inc.
(Nasdaq: MXWL) today reported revenue of $26.1 million for its third quarter
ended September 30, 2009, up 22 percent over the $21.4 million recorded in the
same period in 2008. Operating loss for the third quarter 2009 was $1.7
million, compared with $4.0 million in the same period last year. Net loss for
Q309 was $4.6 million, or $0.18 per share, including a non-cash charge of $2.8
million, or $0.11 per share, reflecting a quarterly "mark-to-market" valuation
of conversion features and warrants associated with convertible debentures
issued in 2005. That compares with a net loss of $5.7 million, or $0.27 per
share, including a non-cash charge of $1.0 million, or $0.05 per share for the
conversion feature valuation in Q308.

Third quarter BOOSTCAP® ultracapacitor sales increased by 38 percent to $10.5
million, compared with $7.6 million for the same period last year. Sales of
high voltage capacitor and microelectronics products also continued to grow,
combining for Q309 revenue of $15.6 million, up 13 percent from the $13.8
million recorded in Q308.

"Continuing shipments to fulfill purchase orders totaling $13.5 million that
we received in April from three leading Chinese bus producers for 48-volt
ultracapacitor modules to support braking energy recuperation and torque
assist systems in diesel-electric hybrid transit buses helped to drive another
strong quarter for ultracapacitor sales," said David Schramm, Maxwell's
president and chief executive officer. "That sales volume, along with
significant ongoing manufacturing cost reductions for ultracapacitor products,
enabled the company to generate positive cash flow from operations for the
second consecutive quarter."

"Primary markets for our products, such as public transportation, renewable
energy, electric utility infrastructure and aerospace continue to be stable,"
Schramm added. "Sales are up more than 27 percent and operating results have
shown significant improvement compared with the first three quarters of 2008.
We expect sequential sales growth and additional operating results improvement
in the fourth quarter, capping a year of solid progress."

Other significant recent developments include:

-- Selection of Maxwell's BOOSTCAP ultracapacitors by Continental AG, one
of the world's leading automotive electronics and mechatronics
suppliers, as the energy storage element of a voltage stabilization
and
stop-start fuel efficiency system that Continental has developed for
automobiles.

-- Introduction of an enhanced version of Maxwell's PC-10 ultracapacitor
product, incorporating proprietary electrode to ensure the reliability
of backup power in enterprise storage, power wireless transmitters in
smart utility meters and support other industrial applications.

Q309 gross margin was 38 percent, compared with 29 percent in Q308. Operating
expenses totaled approximately $11.6 million, or 45 percent of revenue in
Q309, compared with $10.1 million, or 47 percent of revenue in Q308. Cash,
cash equivalents and restricted cash totaled $38.2 million as of September 30,
2009, compared with $39.5 million as of June 30, 2009. Complete financial
statements and Management's Discussion and Analysis of Financial Condition and
Results of Operations will be available with the filing of the company's
Quarterly Report on Form 10-Q with the Securities & Exchange Commission.

As reported previously, the company is conducting an internal review of
payments made to an independent sales agent in China in connection with sales
of high voltage capacitor products produced by Maxwell's Swiss subsidiary.
The company believes that the amount of the payments was immaterial in all
periods involved. However, because the company's international operations
make it subject to the U.S. Foreign Corrupt Practices Act (FCPA), management
is conducting further review to determine how these payments should be treated
for FCPA purposes. The internal review has not been completed, and the
company is voluntarily sharing information related to the review with the
Securities and Exchange Commission and Department of Justice and has provided
documents as requested by the SEC in connection with its review of this
matter.

Management will conduct a conference call and simultaneous webcast to discuss
third quarter financial results and the future outlook at 5 p.m. (EST) today.
The call may be accessed by dialing toll-free, (800) 862-9098 from the U.S.
and Canada, or (785) 424-1051 for international callers. The live webcast may
be accessed via the following link: http://www.maxwell.com and will be
archived for subsequent Internet replay at http://www.maxwell.com.

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 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.

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;
-- disruption of global financial markets and reduced credit
availability;
-- general economic conditions in the markets served by our products;
-- demand for original equipment manufacturers' products reaching
anticipated
-- levels;
-- cost-effective manufacturing and the success of outsourced product
assembly;
-- the impact of competitive products and pricing;
-- risks and uncertainties involved in foreign operations, including the
impact of currency fluctuations;

-- product liability or warranty claims in excess of reserves.

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 these filings may be
obtained by contacting Maxwell's investor relations department at (858)
503-3434 or at our investor relations website: http://www.maxwell.com. All
information in this release is as of November 3, 2009. The company undertakes
no duty to update any forward-looking statement to reflect actual results or
changes in the company's expectations.

MAXWELL TECHNOLOGIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except per share data)
(Unaudited)

September 30, December 31,
2009 2008
---- ----
ASSETS
Current assets:
Cash and cash equivalents $30,233 $12,576
Restricted cash - 8,000
Trade and other accounts
receivable, net 20,634 14,107
Inventories, net 19,050 18,502
Prepaid expenses and other
current assets 1,612 1,645
----- -----
Total current assets 71,529 54,830
Property and equipment, net 17,341 17,355
Intangible assets, net 3,084 3,755
Goodwill 22,783 22,408
Prepaid pension asset 2,760 2,592
Restricted cash 8,000 -
Other non-current assets 1,282 1,373
----- -----
Total assets $126,779 $102,313
======== ========

LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued
liabilities $15,227 $12,592
Accrued warranty 840 905
Accrued employee compensation 5,564 4,353
Short-term borrowings and
current portion of long-term
debt 10,768 18,888
Deferred tax liability 456 456
--- ---
Total current liabilities 32,855 37,194
Convertible debenture and long-
term debt, excluding current
portion 9,812 582
Stock warrants 3,769 318
Other long-term liabilities 609 972
--- ---
Total liabilities 47,045 39,066
------ ------
Commitments and contingencies
Stockholders' equity:
Common stock, $0.10 par value
per share, 40,000 shares
authorized; 25,886 and 22,521
shares issued and outstanding at
September 30, 2009 and December
31, 2008, respectively 2,615 2,253
Additional paid-in capital 220,298 192,228
Accumulated deficit (147,839) (134,902)
Accumulated other comprehensive
income 4,660 3,668
----- -----
Total stockholders' equity 79,734 63,247
------ ------
Total liabilities and
stockholders' equity $126,779 $102,313
======== ========

MAXWELL TECHNOLOGIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(Unaudited)

Three Months Ended Nine Months Ended
September 30, September 30,
---------------- -----------------
2009 2008 2009 2008
---- ---- ---- ----

Revenues:
Sales $26,101 $20,973 $73,314 $56,035
License fee and service revenue - 407 - 1,469
--- --- --- -----
Total revenues 26,101 21,380 73,314 57,504
Cost of sales 16,164 15,239 47,409 41,427
------ ------ ------ ------
Gross profit 9,937 6,141 25,905 16,077
Operating expenses:
Selling, general and
administrative 7,288 6,044 17,962 16,448
Research and development 4,274 4,003 12,066 10,796
Amortization of intangibles 86 94 267 270
-- -- --- ---
Total operating expenses 11,648 10,141 30,295 27,514
------ ------ ------ ------
Loss from operations (1,711) (4,000) (4,390) (11,437)
Interest expense, net (59) (132) (202) (399)
Amortization of debt discount and
prepaid debt costs (73) (553) (695) (1,922)
Loss on embedded derivatives and
warrants (2,761) (1,011) (7,175) (1,971)
------ ------ ------ ------
Loss from continuing operations
before income taxes (4,604) (5,696) (12,462) (15,729)
Income tax provision 33 11 475 512
-- -- --- ---
Net loss $(4,637) $(5,707) $(12,937) $(16,241)
======= ======= ======== ========

Basic and diluted net loss per
common share $(0.18) $(0.27) $(0.54) $(0.79)
====== ====== ====== ======

Weighted average shares used in
computing basic and diluted net
loss per common share 25,673 20,992 23,974 20,560
====== ====== ====== ======

SOURCE Maxwell Technologies, Inc.

Michael Sund of Maxwell Technologies, Inc., +1-858-503-3233,
msund@maxwell.com