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News From Battelle Subsidiaries

December 12, 2006

PACIFIC NORTHWEST NATIONAL LABORATORY DIRECTOR ASSUMES NEW ASSIGNMENT

Battelle President and Chief Executive Officer Carl Kohrt announced today that Len Peters, Director of the Department of Energy's Pacific Northwest National Laboratory (PNNL), will move to a corporate position Jan. 1 to take on additional roles that draw upon his experience in education and science and technology management.

Peters joined Battelle, which operates PNNL for the federal government, in April 2003. During his tenure, PNNL's business grew from $582 million in 2003 to $750 million in 2006. The number of full-time employees grew by 330 over that same period.

"Len Peters has demonstrated exceptional leadership at PNNL, guiding the laboratory to many great successes while building upon its impeccable record as a world-class science and technology organization with great people," Kohrt said. "We are counting on that leadership, experience and vision as he takes on this new assignment. His experience at PNNL and his prior experience at two major research universities make him a perfect fit for this role."

"I am looking forward to this new assignment," Peters said. "I am very proud to have led PNNL. The staff are incomparable, and the work they deliver is truly outstanding." Peters will stay in the Tri-Cities for the foreseeable future to remain engaged in community outreach on behalf of Battelle.

Kohrt said Mike Kluse, currently the Associate Laboratory Director (ALD) leading PNNL's national security work, will serve as interim director through the remainder of the existing management and operating contract. DOE announced last winter that the PNNL contract would go through a competitive bid process for the first time, consistent with recent DOE policy that favors regular recompetitions. Kluse will serve as director during that process.

"I am fortunate to have worked closely with Len for the past several years. He leaves a legacy of great leadership," said Kluse, who held a number of leadership positions at Battelle before being named ALD at PNNL in 1997. "I am looking forward to teaming with the staff at PNNL as we continue delivering world-class science and technology and best value in management and operations."

Bill Madia, Executive Vice President of Battelle's Laboratory Operations, reaffirmed Battelle's commitment to a successful bid for PNNL. "We are aggressively preparing for the competition and remain excited and energized about the opportunity to demonstrate that we are indeed the best choice for managing and operating PNNL."

PNNL is a DOE Office of Science laboratory that solves complex problems in energy, national security, the environment, and life sciences by advancing the understanding of physics, chemistry, biology, and computation. PNNL employs 4,200 staff, has a $750 million annual budget, and has been managed by Battelle since the lab's inception in 1965.

Battelle is the world's largest independent research and development organization, with 20,000 employees in more than 120 locations worldwide, including five national laboratories Battelle manages or co-manages for the U.S. Department of Energy. Headquartered in Columbus, Ohio, Battelle conducts $3.7 billion in R&D annually through contract research, laboratory management, and technology commercialization. Battelle provides innovative solutions to some of the world's most important problems including global climate change, sustainable energy technologies, high performance materials, next generation healthcare diagnostics and therapeutics, and advanced security solutions for people, infrastructure, and the nation. Battelle has a long history of developing successful commercial products in collaboration with its clients, ranging from products to fight diabetes, cancer and heart disease to the development of the office copier machine (Xerox). As a non-profit charitable trust with an eye toward the future, Battelle actively supports and promotes science and math education.

For more information, visit www.battelle.org or contact Battelle Media Relations Manager Mark Berry at (614) 424-5544 or at berrym@battelle.org, or PNNL Media Relations Manager Greg Koller at (509) 372-4864 or at greg.koller@pnnl.gov.



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For news release information contact Battelle's National Media Relations Manager Katy Delaney at (410) 306-8638, delaneyk@battelle.org or contact Battelle Media Relations Manager Mark Berry at (614) 424-5544, berrym@battelle.org.

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