Wilmington, MA, Nov. 17, 2005 — Beacon Power Corp. , a company that designs and develops advanced products and services to support electricity grid operation, announced that they and NxtPhase T&D Corp. are in discussions regarding termination of an arrangement agreement, signed on April 22, 2005. At that time, Beacon anticipated issuing approximately 15.7 million shares of its common stock to NxtPhase shareholders and 2.7 million restricted stock units to NxtPhase employees.
The agreement specified that the transaction would automatically terminate if not completed by Dec. 31, 2005. Based on the current status of the SEC review process as well as the increase in Beacon’s stock price since the signing of the agreement, both companies have determined that the transaction is unlikely to be completed. Therefore, the boards of directors of Beacon and NxtPhase have agreed to terminate the arrangement agreement, subject to execution of appropriate documentation by applicable parties (including NxtPhase stockholders).