Maxwell Technologies Expands Worldwide Distributor Network To Serve Increasing Demand For Boostcap® Ultracapacitor Products

January 10, 2006, San Diego, CA – Maxwell Technologies announced today that it has added eight new distributors in Europe and the Middle East to serve growing demand for BOOSTCAP® ultracapacitor products and related technical and customer support.

Dr. Richard Balanson, Maxwell’s president and chief executive officer, said that the company is moving aggressively to leverage its leadership as a provider of innovative, cost-effective energy storage solutions.

“The worldwide ultracapacitor market is real, and we continue to strengthen the company’s capabilities and global reach to serve that market,” Balanson said. “This means more and broader talent, new and more technologically advanced products, stronger internal and external production and distribution capabilities and a wider network of partnerships and alliances. These new channel partners will help us to ensure the best service and technical support and fast, local language response for customers in their respective geographic regions.”

The newly signed BOOSTCAP distributors are:
• Alfatec – Germany
• Alphatron – Netherlands, Belgium, Luxembourg and Denmark
• BLL – Israel
• Dimac Red – Italy
• Inelec – Spain
• OEM Components – Sweden, Norway, Finland and Poland
• Williamson – France
• Young ECC – United Kingdom

“Our network of channel partners is vital to supporting our continued growth in Europe and the Middle East.” said Alain Riedo, vice president and general manager of Maxwell Technologies SA, the company’s European subsidiary. “We continuously train all of our partners on new products and applications to ensure that they have the highest level of ultracapacitor technical knowledge in order to provide the best level of support for Maxwell customers.”

BOOSTCAP ultracapacitors are an innovative energy storage technology ideally suited for applications needing repeated bursts of power for fractions of a second to several minutes. Ultracapacitors provide up to 100 times the energy of conventional capacitors and deliver up to 100 times the power of ordinary batteries, require no maintenance, and operate safely and reliably in extreme temperatures.

Ultracapacitors’ burst power capabilities and life-of-the application longevity make them a preferred energy storage and power delivery solution for transportation, consumer and industrial electronics and other applications. Maxwell offers ultracapacitors with capacitances of up to 2,600F as well as BOOSTCAP ultracapacitor packs and modules that provide easy-to-integrate energy storage and power delivery solutions for a wide range of applications.

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.

This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, and other expressions of management’s belief or opinion that reflect its current understanding or belief with respect to such matters. Such statements include, without limitation, projections of revenue, reserves for delivery of products at prices below our manufacturing cost and operating expenses, including expenses associated with implementation of Section 404 of the Sarbanes-Oxley Act of 2002, for future periods. These estimates and projections and the company’s business prospects in general are subject to numerous risks and uncertainties, including the fact that the company has a history of losses, may not be able to achieve or maintain profitability, and may not be able to obtain sufficient capital to meet customer demand or other corporate needs. Other risks and uncertainties involve our ability to fulfill the terms of research programs and long-term contracts, 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, and the impact of competitive products and pricing, and risks and uncertainties involved in foreign operations, including the impact of currency fluctuations. Future changes in accounting standards or practices may adversely affect our revenue or expenses, and compliance with government regulations may result in additional expenses. We may also be subject to product liability or warranty claims in excess of our reserves, with which we have limited historical experience, and we have undergone government audits of two businesses sold or discontinued in 2001, and cannot be certain that documentation we have provided will be sufficient to avoid significant liabilities arising from those audits. These and other risks are detailed from time-to-time in the Company’s SEC reports, including our most recent Form 10-Q and our Form 10-K for the fiscal year ended December 31, 2004. Actual results may differ materially from those projected. These forward-looking statements represent management’s opinions and beliefs as of the date of this news release. The Company disclaims any intent or obligation to update these forward-looking statements to reflect events or circumstances that may arise after the date of this release.

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