Axion Power International, Inc. (Nasdaq: AXPW, AXPWW), today released the following letter to shareholders from Chairman & CEO, David DiGiacinto:

Dear Shareholders,

As my first six months as your CEO is soon coming to a close, I want to take a moment to reflect on our recent activity and also give some thoughts for 2015.

The second half of 2014 has been one of change and activity for Axion:  we completed our registered offering, as well as for the first time in the Company's history, been listed on a stock exchange – we are fortunate to be on the Nasdaq Capital Market and look forward to reaping the benefits attendant to having been approved for listing on the Capital Market in October. 

On behalf of the company, I want to thank our shareholders for once again believing in Axion and helping us to raise over $6,000,000, which will get us well into 2015 and give us opportunities to capitalize on our business activity as we continue to move forward with the commercialization of our PbC® technology and products.  We continue to move forward with initiatives about which we have provided information in the past:  ePower Energy Systems, as the NS 999 hybrid electric locomotive at Norfolk Southern, the Coatesville Solar Initiative, and the Zero Energy House at the Navy Yard in Washington DC.  We are also continuing to focus on businesses which see the value of PbC technology for energy storage and frequency regulation, whether in combination with renewable energy generation, or standalone.  As we have further definition on these initiatives, we will provide current information to you and hope for some significant developments in this arena in 2015.

We are continuing to slim down our expense structure and concentrate on the core of our technology, making our electrodes the best they can be, and working with our customers to construct energy storage solutions that fit their needs.  We will be communicating with potential out-sourcing partners who are capable of handling battery manufacturing using our proprietary activated carbon electrode material, and with large companies interested in helping to cost-reduce the activated carbon materials for our patented electrodes.  We appreciate the support of our senior management team, who have all taken significant salary deferrals in order to conserve the cash invested in us in October.

We believe that the current stock price and market valuation of Axion Power is significantly lower than it would be if the market were taking into account the inherent worth of our technology.  We believe that our stock is undervalued based on the technology's potential to save money for our customers in the transportation space by increasing gas mileage and reducing emissions. In the energy storage space, using PbC batteries to decrease payback time for solar photovoltaic farms and other renewable energy projects. We hope that you, our shareholders, will continue to support us and hold steady while we continue to work to fulfill our value proposition over the ensuing months. As we approach the Holiday season, I would like to wish all of you a Wonderful Holiday and Happy New Year.

Sincerely,

David T. DiGiacinto 

Chairman & CEO