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. Regards, 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 (www.enerdel.com), 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 (www.enerfuel.com); and wholly owned subsidiary NanoEner, which develops nanotechnology-based materials and manufacturing processes for batteries and other applications (www.nanoener.com). For more information, visit http://www.ener1.com. 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 firstname.lastname@example.org email@example.com
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