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A123 Systems to Supply Advanced Lithium Ion Battery Packs to VIA Motors for Extended-Range Electric Trucks

A123's Proprietary Nanophosphate(R) Technology Designed to Deliver High Power and Increased Usable Energy to Maximize Performance and Enable up to 40 miles of All-Electric Range for VIA's eREV Trucks

| Source: A123 Systems, Inc.

WALTHAM, Mass., Jan. 5, 2012 (GLOBE NEWSWIRE) -- A123 Systems (Nasdaq:AONE), a developer and manufacturer of advanced Nanophosphate®lithium ion batteries and systems, today announced that it will supply complete lithium ion battery packs to VIA Motors, an electric vehicle company building next-generation electrified trucks, vans and SUVs. To be integrated into VIA's Extended-Range Electric Vehicle (eREV) Powertrain, A123's 24kWh battery packs combine with a 300kW electric motor and an onboard generator to deliver an expected all-electric driving range of up to 40 miles.

"VIA plans to ramp up production significantly over the next three years to satisfy demand for clean, fuel-efficient full-size trucks and SUVs," said Kraig Higginson, CEO of VIA Motors. "We selected A123's Nanophosphate lithium ion battery systems because they are able to package higher power into a compact space in the vehicle."

VIA offers a full lineup of extended-range electric trucks, vans and SUVs called VTRUX, each equipped with the company's eREV Powertrain. In addition to supporting an expected all-electric range of about 40 miles, A123's lithium ion battery systems are also designed to provide exportable power capabilities that can be used externally. A123 has already begun producing the battery packs at its Livonia, Mich. facility as VIA has started delivering trucks to commercial fleet customers.

"We believe that the high power, greater usable energy and long life offered by our Nanophosphate lithium ion battery solutions will help VIA better position its eREV Powertrain platform as a cost-effective solution to maximize vehicle range and increase fuel economy," said Jason Forcier, vice president of A123's Automotive Solutions Group. "We think that commercial and government fleets represent a tremendous opportunity for vehicle electrification, and we look forward to working with VIA Motors to design eREV trucks, vans and SUVs that meet fleet customers' needs for efficient, environmentally friendly vehicles that also satisfy their performance, range and reliability requirements."

About A123 Systems

A123 Systems, Inc. (Nasdaq:AONE) is a leading developer and manufacturer of advanced lithium-ion batteries and energy storage systems for transportation, electric grid and commercial applications. The company's proprietary Nanophosphate® technology is built on novel nanoscale materials initially developed at the Massachusetts Institute of Technology and is designed to deliver high power and energy density, increased safety and extended life. A123 leverages breakthrough technology, high-quality manufacturing and expert systems integration capabilities to deliver innovative solutions that enable customers to bring next-generation products to market. For additional information please visit www.a123systems.com.

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Safe Harbor Disclosure

This press release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that are subject to risks, uncertainties and other factors, including statements with respect to including statements with respect to the expected production and availability of VIA's  Extended-Range Electric Vehicle (eREV), and its anticipated performance, benefits and features, as well as the expected demand by VIA for battery packs to be supplied by A123, the expected performance of such battery packs and their ability to meet the eREV's requirements, and the market for alternative-energy transportation in commercial vehicle  fleet and consumer transportation applications. Among the factors that could cause actual results to differ materially from those indicated by such forward-looking statements are: delays in customer and market demand for and adoption of VIA's eREV, delays in the development, production and supply of A123's  battery packs, adverse economic conditions in general and adverse economic conditions specifically affecting the markets in which A123 and VIA operate and other risks detailed in A123 Systems' 10-Q for the quarter ended September 30, 2011 and other publicly available filings with the Securities and Exchange Commission. All forward-looking statements reflect A123's expectations only as of the date of this release and should not be relied upon as reflecting A123's views, expectations or beliefs at any date subsequent to the date of this release.

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