National Press Release

WASHINGTON, Dec. 1 /PRNewswire-FirstCall/ -- As Congress and the new administration weigh sweeping measures to rescue the U.S. auto industry, advanced lithium-ion battery maker Ener1, Inc. (Amex: HEV) is joining dozens of companies that develop and build technology for hybrid and electric vehicles this week to show their latest innovations and discuss how they fit into this changing landscape. Ener1 CEO Charles Gassenheimer says companies like Ener1 have a crucial role to play in the federal retooling effort.

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"The technology is here," says Gassenheimer. "The question is who is going to win the race to get it to market. Decisions we make as a nation today will determine whether or not our country remains competitive in the global automotive industry."

By coincidence, the conference and technological showcase put on by the Electric Drive Transportation Association (EDTA) at the Washington, D.C. Convention Center from December 2-5 corresponds with this week's deadline for the Detroit Big Three automakers to present their individual recovery plans to Congress in hope of receiving a $25 billion rescue package.

"Whether it is a plug-in hybrid like the Chevy Volt or a fully electric car like the Th!nk City, the future depends on better batteries," Gassenheimer says. "We need dedicated federal support to ramp up production and drive down costs. That's already happening in China, Korea, and Japan, as well as in Europe. It needs to happen here, and it needs to happen quickly or we will miss the boat."

Ener1 is the first company to commit to producing advanced lithium-ion batteries in the U.S. on a commercial scale for the automotive market. In addition to its plant in Indianapolis, Ener1 recently gained an Asia foothold by acquiring South Korea's third largest lithium-ion battery producer.

More than 75 hybrid models will hit the market by 2011. President-elect Barack Obama has promised to put one million plug-in hybrids on the road by 2015, and he has made clear that Detroit will not get the federal help it wants without clear commitments to change the way they do business. That means swift transition to next-generation technology and a concrete commitment to better fuel economy.

"Advanced batteries are as important to this new market as the microprocessor was to the emergence of the personal computer revolution," Gassenheimer says. "You can't have one without the other. Unfortunately, the U.S. manufacturing capacity is just not there today to produce them in anything approaching the numbers we need over the next few years at costs the market demands."

Automakers are already putting lithium-ion batteries on the road in small numbers today, and growth is expected to be rapid. While it may be a few years before truly mass-market scale is achieved, Gassenheimer says the competitive foundations for the entire sector are being built today.

Auto industry leaders have publicly echoed the call for more aggressive battery development:

"One of the things we need to sort out as a country is batteries," Ford Motor Company executive chairman William Clay Ford, Jr. was quoted as saying in the New York Times last week. "We really don't want to trade one foreign dependency, oil, for another foreign dependency, batteries."

"It's a game that we are behind in," GM CEO Rick Wagoner said when the Washington Post recently asked him about the need for advanced batteries. "It doesn't mean it's a game that we lost. If we choose to go at it as a country we are really going to have to pick up the pace."

"From a technological standpoint, the future is now," Gassenheimer explains. "We know this is going to be a multibillion-dollar market; the question is who will control it. High oil prices will be back the minute the economy begins to recover. This is not a change we can afford to put off."

    For more information, visit www.electricdrive.org.

Safe Harbor Statement:

Certain statements made in this press release constitute forward-looking statements that are based on management's expectations, estimates, projections and assumptions. Words such as "expects," "anticipates," "plans," "believes," "scheduled," "estimates" and variations of these words and similar expressions are intended to identify forward-looking statements. Forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, as amended. These statements are not guarantees of future performance and involve certain risks and uncertainties, which are difficult to predict. Therefore, actual future results and trends may differ materially from what is forecast in forward-looking statements due to a variety of factors. All forward-looking statements speak only as of the date of this press release and the company does not undertake any obligation to update or publicly release any revisions to forward-looking statements to reflect events, circumstances or changes in expectations after the date of this press release.

About Ener1, Inc.:

Ener1 develops and manufactures compact, high performance lithium-ion batteries to power the next generation of hybrid and electric vehicles. The publicly traded company (Amex: HEV) is led by an experienced team of engineers and energy system experts at its EnerDel subsidiary located in Indiana. EnerDel has developed proprietary battery systems based on technology originally pioneered with the assistance of the Argonne National Lab.

Ener1 is seeking to become the first company to mass-produce a cost- competitive lithium-ion battery for hybrid and electric vehicles. Demand for battery solutions is being driven by a need to reduce dependence on oil as well as growing concern about vehicle emissions. In addition to the automobile market, applications for Ener1 lithium-ion battery technology include medical, military, aerospace, electric utility and other growing markets.

Major shareholders of Ener1 include Ener1 Group, Inc., a privately held, global investment and advisory firm, and ITOCHU Corporation, a Japanese trading company and distributor of manufacturing equipment essential to lithium-ion battery production. ITOCHU has annual revenue of approximately $90 billion and offices in more than 80 countries. Ener1 has also received funding from a growing number of institutional investors.

In addition to battery technology, Ener1 develops commercial fuel cell products through its EnerFuel subsidiary and nanotechnology-based materials and manufacturing processes for batteries and other applications through its NanoEner subsidiary.

    Contacts:  INVESTOR RELATIONS              MEDIA RELATIONS
               Rachel Carroll                  Jon Coifman
               VP Corporate Communications     Waggener Edstrom Worldwide
               P: 212 920 3500                 P: 212 551 4815
               E: rcarroll@ener1.com           E: jcoifman@waggeneredstrom.com

SOURCE Ener1, Inc.