Firefly Energy Receives Series A Funding
Posted on October 14th, 2004

Celebrates Second Year in Business with New Investment

Peoria, IL – October 14, 2004 – Firefly Energy Inc., formed to create the next generation of lead acid battery technology based on an innovation discovered by Caterpillar Inc. (NYSE: CAT), today announced the company has received $4.0 million in Series A financing. This new funding comes just one year after spinning the technology out of Caterpillar through Peoria NEXT, a regional collaborative focusing on Discovery, Innovation, and Commercialization of technologies.

New investors in this funding round included KB Partners, a Chicago-based venture capital firm, and United Defense, L.P. (NYSE: UDI), a leader in military equipment. KB Partners was established in 1996, and invests in early-stage companies located in the Midwest. "Firefly Energy represents a great combination of seasoned management and market leading technology. We are excited by Firefly's potential to revolutionize the lead acid battery industry," said Byron Denenberg, Managing Director of KB Partners.

Caterpillar and the Illinois Finance Authority were original investors in the company’s seed round, and participated again in the new Series A round. Caterpillar leaders say the ability to secure Series A financing reinforces early confidence in the potential of the battery innovation. “Firefly Energy was our first spin-out project through Peoria NEXT and it is exceeding our expectations. The company is developing a quality product from an innovative idea that will address an unmet need in the energy storage industry. The timing is great for Firefly,” said Caterpillar group president Gerry Shaheen.

The Technology Development Bridge (TDB) program is an innovative public-private partnership developed by the Illinois Coalition and funded by the Illinois Finance Authority (IFA). "As the State's investment banker, one of our key goals is to support innovative Illinois companies with seed capital. Firefly Energy shows great promise and we are glad to support their growth," said IFA Executive Director Ali Ata.

Firefly also announced that it has additionally secured $500,000 in debt financing, led by the State of Illinois’ Department of Commerce and Economic Opportunity (“DCEO”), with participation from Peoria County Revolving Loan Fund and Peoria Citizen's Committee for Economic Opportunity, Inc. “Firefly Energy is representative of a new wave of innovative start-ups choosing to make Illinois their home,” said Jack Lavin, Director of DCEO. “By being pro-active and ensuring young companies have all the resources they need to be successful, we can continue stimulating more widespread economic opportunity and a more vibrant regional economy.”

Funds from both equity and debt financing will be used to advance product development of Firefly’s innovative lead acid technology. Specifically, Firefly plans to use the funds toward increased hiring in product development, the acquisition of sophisticated test machines, expansion of lab facilities, and procurement of prototype manufacturing equipment.

“This financing is a testament to the potential of Firefly’s team and technology. We’re both fortunate and very appreciative of the support shown to the company and the technology by our strategic and financial investors, who see the vast promise of our breakthrough battery technologies,” said Edward F. Williams, Chief Executive Officer of Firefly Energy. “This capital, in combination with the State’s equity investment alongside their attractive debt package supported by Peoria County, will enable us to accelerate our drive toward product prototypes and beta customers,” Williams concluded.

CLICK HERE for information regarding State of Illinois DCEO funding for Firefly.

About Firefly Energy (www.fireflyenergy.com): Firefly Energy Inc. (“Firefly”) is in the business to produce and license advanced lead-acid battery technologies. Firefly Energy’s technology was created by Caterpillar Inc. as part of its $600+ million annual research & development operations. Firefly has developed a next generation lead-acid battery technology that has the opportunity for a major impact in the $30 billion worldwide battery market. The technology can deliver a disruptive combination of high performance, extremely low weight and reduced cost in a battery utilizing traditional, but non-corrosive, lead-acid chemistry. Firefly’s technology delivers a performance associated with advanced materials (Nickel Metal Hydride & Lithium) at a cost similar to lead acid batteries. The company was launched as a spin-out from Caterpillar on May 1, 2003, and is headed by co-founders Edward Williams (CEO), Mil Ovan (Sr. VP), and Kurtis Kelley (Chief Scientist).

For more information, please contact Mil Ovan at 309.690.7502.