PowerGenix Announces Closing of Series C Financing

SAN DIEGO, CA -- (MARKET WIRE) -- December 1, 2006 -- PowerGenix Corporation (www.powergenix.com), a leading developer of high discharge rate, rechargeable nickel-zinc (NiZn) batteries, announced today that it has completed its third round of financing totaling $17 million. The Angeleno Group, a California-based private equity firm focused on high growth investments in the energy sector, led the round. This round also included return investors Advent International, Braemar Energy Ventures, Granite Ventures and Technology Partners.

"PowerGenix is a company with world-class technology and the business model to bring that technology to market," said Zeb Rice, Managing Partner of Angeleno Group. "We look forward to working with the PowerGenix team to realize the potential of nickel-zinc rechargeable batteries."

"The successful closing of this round was made possible by the fact that our award-winning technology has progressed from the R&D stage into a low-cost, manufactureable cell design suitable for a very wide range of applications," noted PowerGenix's Chief Executive Officer, Dan Squiller. "This infusion of capital will enable us to introduce a broad portfolio of products into high volume production and fully exploit the value of our nickel-zinc technology."

"Technology Partners has evaluated innumerable battery company investments and PowerGenix clearly stood out from the rest of the pack," said Ira Ehrenpreis, General Partner at Technology Partners. "PowerGenix not only has an exciting new technology that can revolutionize the battery industry and a superior business model, but also a high quality entrepreneurial management team that can lead the company to its next phase of growth."

"The reinvestment by Advent International, Braemar Energy Ventures, Granite Ventures and Technology Partners validates their continued belief in the future of PowerGenix," Squiller added. "New investment by the Angeleno Group will bring additional energy market expertise to the company."

For more information on PowerGenix's innovative battery technology, visit www.powergenix.com or call 858.547.7300.

About PowerGenix:

Founded in 2000 and located in San Diego, Calif., PowerGenix has developed and patented a high-energy density, high-cycle life and low-cost nickel-zinc (NiZn) battery that is specifically designed to utilize existing nickel-cadmium (NiCd) manufacturing processes, techniques and equipment, thereby significantly reducing time-to-market, and eliminating costly equipment design steps. With its patented rechargeable NiZn battery technology, PowerGenix is pursuing applications to replace existing NiCd and nickel-metal hydride (NiMH) batteries in the multi-billion dollar rechargeable battery market.

About the Angeleno Group:

Angeleno Group believes that a series of fundamental changes in the energy and environmental industries are generating significant private equity opportunities. These changes revolve around three major themes: (1) the need for energy independence, (2) the requirements of a stable and reliable energy infrastructure, and (3) imperatives relating to environmental sustainability. Taken as a whole, these themes affect the entire sector value chain -- from the extraction of natural resources and the conversion of fuels into electricity to the distribution of energy and the way in which power is ultimately consumed. In each case, innovative products and services are emerging as potential solutions to global energy and environmental challenges.

About OnPoint Technologies:

OnPoint Technologies, a strategic private equity firm funded by the U.S. Army, has a mission to discover, invest in and support companies developing innovative mobile power and energy technology at the intersection of the defense and commercial markets. For more information on OnPoint, please visit www.onpoint.us, or call (407) 838-1400.

About Braemar Energy Ventures:

Braemar Energy Ventures is a New York City-based venture capital fund making early to mid-stage investments in energy technology and energy-related communications companies. Braemar's principals have a long history of making successful investments in the energy technology sector and have significant technical, operating, and financial experience in energy and energy-related industries. The fund targets a wide range of energy technologies that impact stationary power, transportation and portable energy applications. For more information on Braemar Energy Ventures, please visit www.braemarenergy.com.

About Advent International:

Advent International is one of the world's largest private equity firms, with $6 billion in cumulative capital raised and offices in 13 countries across North America, Europe, Latin America and Asia Pacific. Since its founding in 1984, Advent has been committed to helping management teams build successful businesses by applying its industry expertise, international resources and local market knowledge. Over 130 of Advent's portfolio companies have completed IPOs on major stock exchanges worldwide. Its portfolio companies have raised more than $10 billion through public equity and debt offerings. For more information on Advent International, visit www.adventinternational.com.

About Granite Ventures:

Granite Ventures, LLC, formerly H&Q Venture Associates, LLC, is a leading early-stage technology venture capital firm with approximately $650 million in capital under management. Granite Ventures was formed in July 1998 as an independent venture capital firm spun out of Hambrecht & Quist, now J.P. Morgan H&Q. Granite Ventures manages general venture capital funds and corporate funds in partnerships with technology industry leaders Adobe Systems Incorporated and Texas Instruments Incorporated. Granite Ventures has invested in more than 80 companies, including such industry leaders as Digimarc, DigitalThink (acquired by Convergys Systems), InfoGear (acquired by Cisco), InterNAP, NetBoost (acquired by Intel), Nexabit (acquired by Lucent), Siebel Systems, Sierra Wireless, SnapTrack (acquired by Qualcomm), Tumbleweed Communications and Vignette, among others. For more information, visit www.granitevc.com.

About Technology Partners:

Technology Partners is a 20-year-old venture capital firm that manages more than $400 million of investment capital with current investments being made from Technology Partners Fund VII. Technology Partners has invested in dozens of companies in a variety of industries serving principally as a lead investor. The majority of investments are in early stage companies. The firm invests approximately half of its capital in information technology companies and the other half into companies focused on the life sciences. Within information technology, Technology Partners currently focuses on the areas of Cleantech (Energy Technology, Water Technology, and Materials Science) and Enterprise Software. For more information on Technology Partners, go to www.technologypartners.com.

Contact Information: Contact: PowerGenix Joseph A. Carcone Vice President, Business Development 858.547.7300 joe.carcone@powergenix.com www.powergenix.com Agency Contact: Jennings & Associates PJ Jennings President 760.431.7466 pj@jandacommunications.com www.jandacommunications.com