Chairman's Letter to Shareholders

Apr 07, 2006, 01:00 ET from Ener1, Inc.

    FORT LAUDERDALE, Fla., April 7 /PRNewswire-FirstCall/ -- Ener1, Inc.
 (OTC Bulletin Board:   ENEI) Chairman Charles Gassenheimer today issued the
 following letter to Ener1 shareholders and interested members of the
 investment community.
     Dear Shareholder,
     Progress, focus and fiscal responsibility are themes that characterize
 the developments at Ener1 since my last shareholder's letter dated January
 31, 2006.
     I am pleased to report that the company has been relisted on NASDAQ
 Over-The-Counter Bulletin Board. This is an important milestone for our
 company and one that indicates the solid foundation for growth precipitated
 by our new management team, led by Interim Chief Executive Officer Ron
 Stewart and Chief Financial Officer Gerard Herlihy. Their dedication and
 long hours are recognized by Ener1's Board of Directors, as well as the
 entire Ener1 team.
     This accomplishment, while significant, only tells part of the Ener1
 story. The heads of our operating companies, Ulrik Grape, President of
 EnerDel, and Rex Hodge, President of EnerFuel, are making strides to
 advance their businesses. For example, EnerFuel is partnering with fuel
 cell companies and producers of alternative fuels, such as methanol and
 ethanol, on numerous Department of Energy funded proposals. This shows the
 confidence the fuel cell industry has in our team and their capabilities as
 a competent partner in the development of cutting-edge fuel cell
 technologies. The company's engineers are working on the launch of their
 first product -- a component that will be sold to fuel cell system
 manufacturers to enhance the performance of their fuel cell systems. We
 expect this product to debut this summer.
     EnerDel is producing lithium-ion cells for internal testing and
 evaluation, an important step towards sampling our batteries for hybrid
 electric vehicles (HEVs) with potential customers in the automotive sector.
 These cells will be produced using a proprietary, automated manufacturing
 technology that is fundamental to our competitive strategy. This technology
 should enable EnerDel to cost-competitively mass-produce its lithium-ion
 batteries in the United States. We plan to produce these batteries in
 Indiana. Our goal is to help transform the U.S. auto industry and reduce
 our country's consumption of foreign oil by introducing a battery that will
 improve the performance and fuel efficiency of future HEVs.
     We continue 2006 with a renewed confidence. We expect to face many
 challenges in the race to commercialize our technologies, but do so with a
 resilient and dedicated team that is committed to success.
     Charles Gassenheimer
     About Ener1, Inc.
     Ener1, Inc. (OTC Bulletin Board:   ENEI) is an alternative energy
 technology company. The company's interests include: 80.5% of EnerDel
 (, a lithium battery company in which Delphi Corp. owns
 19.5%; 49% of Enerstruct, a Japanese lithium battery technology company in
 which Ener1's strategic investor ITOCHU owns 51%; wholly owned subsidiary
 EnerFuel, a fuel cell products and testing services company
 (; and wholly owned subsidiary NanoEner, which develops
 nanotechnology-based materials and manufacturing processes for batteries
 and other applications ( For more information, visit
     Safe Harbor Statement
     This release contains forward-looking statements within the meaning of
 the Federal Private Securities Litigation Reform Act of 1995 conveying
 management's expectations as to the future based on plans, estimates and
 projections at the time the statements are made. The forward-looking
 statements contained in this press release involve risks and uncertainties,
 including, but not necessarily limited to, EnerDel's ability to succeed as
 a supplier of batteries to the hybrid electric vehicle and other markets;
 Ener1's ability to successfully develop and market proposed lithium
 battery, fuel cell and nanotechnology-based products and services; Ener1's
 plans to reduce costs and gain a competitive advantage by consolidating
 manufacturing operations and implementing automated production processes;
 charges Ener1 will incur in connection with consolidating manufacturing
 operations; the degree of competition in the markets for lithium battery,
 fuel cell and nanotechnology-based products and services, Ener1's history
 of operating losses, the lack of operating history for the development
 stage Ener1 businesses, the need for additional capital, the dependency
 upon key personnel and other risks detailed in its filings from time to
 time with the Securities and Exchange Commission. These risks and
 uncertainties could cause actual results or performance to differ
 materially from any future results or performance expressed or implied in
 the forward-looking statements included in this release. Ener1 undertakes
 no obligation to publicly update or revise any forward-looking statements,
 whether as a result of new information, future events, or otherwise.
     Contact:  Joe Allen (investors)            Alys Daly
               Allen & Caron Inc                Ener1, Inc.
               212 691 8087                     954 202 4442 or 305 815-0312

SOURCE Ener1, Inc.