Ener1 Reports Second Quarter 2008 Results

NEW YORK, Aug. 14, 2008 -- Ener1, Inc. (AMEX:HEV) , maker of advanced battery technology to power the next generation of hybrid, electric and plug-in vehicles, today reported second quarter 2008 financial results.

Highlights from second quarter financial and operational results include the following significant events that occurred after the end of the quarter:

-- Ener1 moved its Corporate Headquarters to New York.

-- Ener1 added 36 employees in the production, manufacturing and engineering areas of EnerDel. This is an increase of 63% from the beginning of the year.

-- Ener1 continues to have the funds necessary to develop its business plan, including cash of $34 million and a commercial equipment lease line of $7 million. The Company's balance sheet is debt free following the EnerDel restructuring transaction completed yesterday.

-- Ener1 has accelerated its R&D spending during the quarter as it continues progress towards meeting the delivery milestones under the Supply Agreement with Think Global AS. The Company's R&D spending increased $3.1 million in the second quarter to $5.4 million. R&D expenses are net of reimbursements of $1 million under USABC and government research contracts.

-- Ener1 completed the restructuring of its EnerDel subsidiary so that it now owns 100% of its outstanding equity. In exchange for Delphi's interest in EnerDel, Ener1 transferred 2.8 million shares of its common stock and $8 million in cash and reduced the exercise price of certain warrants, previously issued to Delphi. The company believes this will be a catalyst for further partnership discussions.

-- Ener1 remains optimistic about the long-term strategic value of EnerDel's partnership with Think Global. The Company believes it is on track to meet the commercial delivery milestones by the end of 2008 and has positioned the company to be able to enlarge capacity in anticipation of further increases in the base level supply agreement. The next production milestone is the delivery of 20 pre-production units to Think from the end of August. The in-vehicle testing has begun in Norway, and Ener1 remains committed to meeting the stated goal of being in volume production by the end of 2008.

-- Ener1 expanded its institutional shareholder base through addition to Russell 2000 index and recent listed options trading.

-- Management believes that the Company is positioned to announce two additional development contracts prior to the end of the year with key Tier One OEM or Automotive Manufacturers.

"The year's second quarter was characterized by full execution on our financial and operational goals in our advanced automotive battery subsidiary and throughout the company," said Ener1 Chairman, Charles Gassenheimer. "We set aggressive targets for 2008, including resetting our balance sheet and executing on key business relationships, culminating in the completion of Ener1's acquisition of the non-controlling interest in EnerDel. We continue to complete our transition from an R&D to a products and solutions company in the rapidly evolving business of energy storage."

Management will host a conference call this morning at 10:00 a.m. Eastern Daylight Time to discuss the second quarter results and give guidance on the company's financial position and objectives. To participate in the conference call, please dial 1-888-680-0894 from within the United States, or 617-213-4860 from outside the United States. The participant pass code is 26950094.