Ovonyx and Qimonda Sign Technology Licensing Agreement for Phase Change Memory

Rochester Hills, MI., Munich, Germany, January 16, 2007 – Ovonyx, Inc. (‘Ovonyx’) and Qimonda AG (NYSE: QI) today announced that they have entered into a long-term cross license agreement for discrete memory products using Ovonyx’ and Qimonda’s patents and intellectual property relating to Phase Change Random Access Memory (PCRAM) technology. The agreement also provides that Ovonyx will actively support Qimonda’s program to develop phase change memory products.

Ovonyx and its largest shareholder, Energy Conversion Devices, invented and pioneered the development of PCRAM technology, thereby gaining a fundamental understanding of PCRAM operation, including phase change memory devices, materials, processing, design, modeling, and performance optimization. Ovonyx PCRAM technology uses a reversible phase-change memory process that provides for high performance, dense, array-addressed semiconductor memory technology that can be used as cost effective Flash and DRAM memory replacements, as well as in embedded applications such as microcontrollers and reconfigurable MOS logic.

Qimonda also has considerable experience and a significant portfolio of intellectual property relating to phase change memories through its many years of research and development in the general field, including its present joint research program with IBM and Macronix. As a part of its emerging memories division, Qimonda will pursue continued research, development and in due course commercialization of phase change memory products.

“Ovonyx’ PCRAM technology has the potential to revolutionize the Flash and DRAM businesses,” said Kin Wah Loh, President and CEO of Qimonda. “With the support of Ovonyx we will expand our program to exploit this emerging technology and be well prepared for its commercialization.”

“Qimonda’s strong 300 mm manufacturing presence and world class development teams provide an excellent platform for competitive and innovative PCRAM memory production,” said Tyler Lowrey, President & CEO of Ovonyx. “We are pleased and look forward to working with Qimonda on their PCRAM product development program.”

About Qimonda

Qimonda AG is the second largest global supplier of DRAM memory products by revenues (ranking in the first nine months of the calendar year 2006 according to the industry research firm Gartner Dataquest). Following its carve out from Infineon Technologies AG on May 1, 2006, Qimonda went public on the New York Stock Exchange on August 9, 2006. The company generated net sales of €3.81 billion in its 2006 financial year and has approximately 12,000 employees worldwide. Qimonda has access to five 300mm manufacturing sites on three continents and operates five major R&D facilities, including its lead R&D center in Dresden. The company is a leading supplier of DRAM products to PC and server manufacturers and is increasingly using its power saving trench technology for graphics, mobile and consumer applications. Further information is available at www.qimonda.com.

About Ovonyx

Ovonyx was formed with the charter to commercialize the proprietary phase-change semiconductor memory technology originally invented by S. R. Ovshinsky at Energy Conversion Devices, Inc. (NASDAQ: ENER - see website at www.ovonic.com). Ovonyx nonvolatile memory technology offers significantly faster write and erase speeds, higher cycling endurance, and better scaling performance with new generations of photolithography than conventional Flash memory. It also has the advantage of a simple fabrication process that allows the design of semiconductor chips with embedded nonvolatile memory using only a few additional mask steps. Ovonyx is pursuing commercialization of its array-addressed memory systems through licenses and joint development programs with semiconductor manufacturers including Qimonda, BAE Systems, Intel Corporation, ST Microelectronics, Samsung, Nanochip, and Elpida Memory. For more information, please visit www.ovonyx.com.