Lowell, Mass., and Fuerth, Germany - June 27, 2005 Konarka Technologies, Inc., an innovator in developing and commercializing power plastics that convert light to energy, and LEONHARD KURZ GmbH & CO.KG, a leader in the research, development and manufacture of polymer electronic technology, today announced they have established a non-exclusive partnership in support of light-activated power plastic. The companies are engaged in a multi-year, multi-phase collaboration to accelerate the development of Konarka's organic photovoltaic technology. KURZ has committed significant capital, equipment and resources to the joint activities.

"As one of the world's largest markets, energy presents many interesting opportunities for us," said Walter Kurz, president, KURZ. "Combining Konarka's technology with our manufacturing expertise will help us take advantage of the growing demand for renewable energy solutions worldwide and particularly here in Germany, the largest domestic solar energy market in the world."

Howard Berke, chairman and chief executive officer, Konarka, said, "KURZ is a world leader in innovative printed materials, and this relationship enhances Konarka's ability to take its organic photovoltaic program beyond the laboratory and into development for manufacturing and production scale-up. With this partnership, we are continuing to execute on our strategy to partner with leading global companies who can print power plastic at very high volumes."

KURZ has expertise in printing and coating films and foils for a wide assortment of products, including packaging, electronic devices, security applications, automotive parts, household appliances, cosmetics, textiles, furniture and greeting cards, and manufacturing capabilities in Europe, North America and Asia. Konarka's power plastic, which is made by printing conducting polymers and nano-engineered materials onto plastic, can integrate easily into devices, systems and structures to provide them with their own renewable power generation capabilities. During this program, Konarka and KURZ will focus their efforts on research and development, manufacturing process engineering and production scale-up for the printed photovoltaics.

"Integrating Konarka's power plastic into our products will enable us to extend and enhance their functionality. Our customers will gain value, such as increased levels of convenience and freedom of use, without affecting the products' overall weight or size. In the longer term, the possibility of printing large format solar modules is intriguing in that it could potentially alter the current economics by driving costs down," said Werner Reinhart, vice president, KURZ. "We may even be able to increase the benefits of power plastic by leveraging the optical competence we gained with our OVD Kinegram AG acquisition."

Randolph Chan, executive vice president, joint program development, Konarka, concluded, "KURZ has decades of experience with roll-to-roll printing and recently has made successful inroads into printing polymer electronics with the PolyIC venture with Siemens. The merger of our organic photovoltaic program and KURZ's complementary manufacturing know-how will result in exciting new ways to transform energy consuming applications into power generators. Working with KURZ further validates of the value of our technology and our leadership position in this emerging field."

About KURZ
KURZ is one of the international market leaders in the field of research, development, manufacture and supply of stamping foils and related application technology. The company has more than 2,600 employees, as well as nine production facilities located throughout Europe, the US and the Pacific region. Together with its worldwide branch offices and distributors, KURZ is able to provide full-service solutions that match individual customer requirements. Beside the utilization of KURZ foils on a wide assortment of products, KURZ possesses great competence in the field of foil-based optical technology for the total range of optically variable devices (OVD) for all kinds of security applications, and its state of the art application technology, magnetic foils and optical technology provide effective and attractive brand and document protection, as well as increased security for every kind of business.

About Konarka Technologies, Inc.
Konarka builds products that convert light to energy - anywhere. Konarka is the leading developer of polymer photovoltaic products that provide a source of renewable power in a variety of form factors for commercial, industrial, government and consumer applications. Konarka's photovoltaic nanotechnology is focused on delivering lightweight, flexible, scalable and manufacturable products. Konarka has a broad portfolio of patents, technology licenses and an accomplished technical team. Nobel Laureate Professor Alan Heeger (UC Santa Barbara) is a director, co-founder and chief scientist for Konarka. Konarka Technologies is headquartered in Lowell, Mass., U.S.A., with European headquarters in Nuremberg, Germany, and research and development facilities in Austria and Switzerland. For more information, visit http://www.konarka.com or contact Tracy Wemett, BroadPR, at 617-868-5031 or tracy@broadpr.com.

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