A123 Systems Congratulates BMW on Launch of ActiveHybrid 5 and ActiveHybrid 3 Hybrid Electric Vehicles

Cutting-Edge HEVs Combine Robust Electronics and Advanced Energy Management Technologies Powered by A123's Nanophosphate(R) Lithium Ion Battery Technology

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| Source: A123 Systems, Inc.

WALTHAM, Mass., Jan. 11, 2012 (GLOBE NEWSWIRE) -- A123 Systems (Nasdaq:AONE), a developer and manufacturer of advanced Nanophosphate® lithium ion batteries and systems, congratulates BMW on the launch of the ActiveHybrid 3 and ActiveHybrid 5 hybrid electric vehicles, which are on display at the 2012 North American International Auto Show (NAIAS) in Detroit. Consistent with BMW's commitment to automotive engineering excellence, these vehicles combine innovative systems that are designed to deliver both increased fuel economy and superior driving performance. A123 is pleased to be the lithium ion battery supplier for both the ActiveHybrid 3 and ActiveHybrid 5.

"We believe that the ActiveHybrid 5 and ActiveHybrid 3 are truly remarkable vehicles. They employ sophisticated power electronics and advanced energy management technologies that showcase BMW's commitment to both cutting-edge innovation and environmental responsibility," said Jason Forcier, vice president of the Automotive Solutions Group at A123. "These systems require robust batteries to maximize their efficiency and performance, so we believe that BMW's selection of A123 as the battery supplier for the ActiveHybrid 5 and ActiveHybrid 3 is strong validation for our advanced Nanophosphate lithium ion technology. We look forward to working with BMW as it continues to embrace vehicle electrification."

The ActiveHybrid 5 and ActiveHybrid 3 use A123's 32113 batteries, which are designed to deliver the high power, increased usable energy, extended life and overall performance capabilities necessary to meet the requirements of the advanced systems integrated into each vehicle.

For example, according to BMW, the ActiveHybrid 5 is equipped with an ECO PRO mode, which can switch off the internal combustion engine while the vehicle is coasting, as well as a customized Hybrid Auto Start-Stop function that shuts off the engine while the vehicle is stopped and restarts it when the car accelerates. Both systems are designed to draw power to run the vehicle's electronics from the A123 lithium ion batteries when the engine is off, providing for a consistent driving experience. The batteries are charged when the vehicle is coasting or braking, and A123's Nanophosphate technology is designed with a high charge-acceptance rate, enabling the batteries to absorb and save the maximum amount of energy possible, which is expected to enhance the capabilities and increase the efficiency of these systems.

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.

The A123 Systems, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=6600

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 the expected production and availability of BMW's ActiveHybrid 5 HEV and ActiveHybrid 3 HEV, and their anticipated performance, efficiency, benefits and features, as well as the expected demand by BMW for battery cells to be supplied by A123, the expected performance of such battery cells and their ability to meet the ActiveHybrid 5's and ActiveHybrid's 3 requirements, and the market for alternative-energy transportation in passenger vehicle  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 BMW's ActiveHybrid 5 HEV or ActiveHybrid 3 HEV, delays in the development, production and supply of A123's  32113 battery cells, adverse economic conditions in general and adverse economic conditions specifically affecting the markets in which A123 and BMW 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.

A123 Systems PR Contact:
A123 Systems
Dan Borgasano
617-972-3471


Edelman
Courtney Kessler
212-277-3720


A123 Systems IR Contact:
ICR, LLC
Garo Toomajanian
617-972-3450