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If we want to obtain a 5V voltage from only 2 NiMH batteries, we´ll face the fact, that the most of common DC/DC circuits doesn´t operate at such a low voltage. LT1304 controller belongs among circuits, which handle this situation without problems and it also provides several extra things.
Thanks to their very low equivalent serial resistance (ESR), provide a very worth function in power supply parts of various devices. In many cases, there´s no need to add any other types of filtering capacitors anymore.