October 22, 2002

Konarka Technologies' Financing Reaches $13.5 Million - Completes Series B Financing

Round Leader Draper Fisher Jurvetson Joins Konarka Board

LOWELL, Mass. - October 22, 2002 - Konarka Technologies, Inc. (KTI), an innovator in the development of flexible, polymer and nanoparticle-based photovoltaic (PV) technology, announced today that it has closed its Series B round of financing, having raised $13.5 million to date.

Round leader Draper Fisher Jurvetson (DFJ) was joined by three other venture capital firms: Zero Stage Capital (leader in Round A), Ardesta LLC, and NextGen Partners. Corporate investors ChevronTexaco and Eastman Chemical Company completed the round.

Coincident with the funding, DFJ Director Raj Atluru has joined Konarka's Board of Directors.

"Konarka's ability to acquire this funding under current market conditions is an indication of the strength of the Konarka team, its technology and significant progress in the first year of operation." Said Mr. Atluru. "At DFJ, our goal is to invest in companies that offer world-changing technologies with enormous market potential. We see Konarka's approach to low-cost, flexible photovoltaics as just such an opportunity - and we believe they have the team to make it happen."

According to Konarka Chairman Howard Berke, "Konarka is stronger than ever. We now have the funds to fully develop our core technology and bring it to market. The current round of financing has provided us with more than operating capital; our new corporate investors offer important expertise in the fields of energy, chemicals and materials, and the addition of Raj Atluru to our Board opens the door to new and strategic opportunities."

"Konarka's initial business focus is on the commercialization of photovoltaic products based on low cost, scalable processing of dye-sensitized, cold sintered titanium dioxide (TiO2) nanoparticles. We have developed excellent partnerships with faculty and founders from the University of Massachusetts-Lowell campus and the EPFL (Lausanne, Switzerland) after receiving technology licenses from them in recent months," said Dr. Bill Beckenbaugh, Konarka President and CEO. "We now expand our total partnership through this new investor group, leveraging their global expertise, and accelerating product qualification of a series of nanotechnology materials innovations for sales into the major PV market segments."

About Konarka Technologies

Founded in June of 2001, Konarka Technologies, Inc. is an advanced research and development company, dedicated to the commercialization of power solutions based on a proprietary, solid-state, flexible, low cost photovoltaic (PV) platform. Unlike other photovoltaic technologies that incorporate glass, Konarka's technology is polymer-based, making it lightweight and portable. The company's PV module technology converts both sunlight and indoor light into direct current (DC) electrical energy and can be incorporated into a wide range of applications, creating an economical, versatile power source. Konarka has a dozen patents pending and exclusive worldwide rights to nanomaterials "cold sintering" technology from the University of Massachusetts. The company's talented technical staff is complemented by a Board of scientific and business advisors, including Nobel Laureate - Alan Heeger, also a founding member of the Board of Directors. Konarka Technologies is headquartered in Lowell, Mass. For more information, visit Konarka's web site at www.konarkatech.com

About Draper Fisher Jurvetson

Draper Fisher Jurvetson is a leading early stage information technology venture capital firm. Headquartered in Redwood City, California, Draper Fisher Jurvetson manages over $2 billion in committed capital and has developed a large network of highly successful portfolio companies. Draper Fisher Jurvetson pursues a people/market/technology approach to venture capital investing, funding entrepreneurs with the energy, vision, experience and desire to build great companies. For more information about Draper Fisher Jurvetson see www.dfj.com.

About Zero Stage Capital

Founded in 1981, Zero Stage Capital (www.zerostage.com), a Cambridge, Mass.-based venture capital firm with offices in Connecticut and Rhode Island invests in emerging growth companies in the information technology, communications, life sciences, and energy technology sectors. For more information about Zero Stage Capital, www.zerostage.com.

About Ardesta LLC

Headquartered in Ann Arbor, Mich., Ardesta is a firm that invests in Small Tech i.e. MEMS, Microsystems, Nanotechnology, and similar technologies. Ardesta's focus is on commercialization of technology, being developed at leading universities and research labs in North America and Europe, through the formation of start-ups as well as investments in early-stage companies. The company's Web site is www.ardesta.com.

About NextGen Partners

NextGen is a venture capital fund dedicated to identifying and nurturing emerging companies that address large market opportunities in the materials fields. Based in Santa Barbara, CA, the fund is engineered so as to support portfolio companies in accelerating product development progress. Refer to www.nextgenpartners.com.

About ChevronTexaco

ChevronTexaco Corporation is an integrated global energy company participating in virtually all aspects of the global energy business. It is the second-largest U.S.-based energy company and the fifth largest in the world, based on market capitalization. More than 53,000 ChevronTexaco employees work in approximately 180 countries around the world, producing oil and natural gas and marketing fuels and other energy products. ChevronTexaco Technology Ventures, a unit of ChevronTexaco, identifies, develops and commercializes new technology for use within the energy industry. For more information, visit www.chevrontexaco.com

About Eastman Chemical Company

With headquarters in Kingsport, Tennesee, Eastman (NYSE:EMN) manufactures and markets chemicals, fibers and plastics. The company has approximately 15,800 employees in more than 30 countries and had 2001 sales of $5.4 billion. To learn more about Eastman and its products, visit www.eastman.com.

About Raj Atluru

Raj Atluru is a Director at Draper Fisher Jurvetson where he serves on the boards of eight portfolio companies. Previous to joining Draper Fisher Jurvetson, Raj worked for TL Ventures and Credit Suisse First Boston. Raj graduated from Stanford University with B.S. and M.S. degrees in Environmental Engineering and an MBA from the Stanford Graduate School of Business.

Contact:
Paul M. Wormser
Chief Operating Officer
1-978-569-1407
pwormser@konarkatech.com