Ener1 And Delphi Sign LOI To Form Lithium Battery Joint Venture

Aug 25, 2004, 01:00 ET from Ener1, Inc.

    FORT LAUDERDALE, Fla., Aug. 25 /PRNewswire-FirstCall/ -- Ener1, Inc.
 (OTC Bulletin Board:   ENEI), and Delphi Corp. (NYSE:   DPH), today entered into a
 non-binding letter of intent to create a joint venture to leverage their
 combined expertise in lithium batteries. Delphi and Ener1 will be negotiating
 definitive agreements and conducting due diligence in the coming weeks.
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     Through the proposed joint venture, Delphi and Ener1 look to aggressively
 pursue business opportunities in the military, automotive, power tool,
 uninterrupted power supply, medical and personal mobility markets.
     "Ener1 is an emerging leader in the development of advanced lithium
 batteries," said Kevin Fitzgerald, Ener1's chairman and chief executive
 officer. "The proposed venture would synergistically combine a unique set of
 competitive advantages from Delphi and Ener1.
     "The combination of Ener1's vapor deposition process and its
 nanotechnology for production of high-rate, low-cost lithium batteries with
 Delphi-developed high energy capacity technology would allow the venture to
 have a key advantage in penetrating its target lithium battery markets,"
 Fitzgerald said.
     Delphi, a world leader in mobile electronics and transportation components
 and systems technology with more than 10 years' experience in developing
 lithium batteries, would contribute its expertise in design leadership, system
 integration, manufacturing and battery cell packaging.
     "We are confident this venture would make it possible to deliver better
 and lower-cost lithium battery products to the marketplace," said Pankaj
 Dhingra, Delphi's energy management systems' business line executive.
     "The proposed venture," Dhingra said, "would greatly benefit from Delphi's
 systems integration and manufacturing expertise to deliver fully integrated
 and high-quality solutions to its customers. Both companies made great strides
 in developing their respective lithium battery technologies, and this synergy
 can help the venture succeed to meet expanding market opportunities.
     "The new venture would benefit Delphi and Ener1, as well as customers of
 the products that contain our collective new battery technologies."
     "Ener1 has been working toward this type of defining opportunity,"
 Fitzgerald said. "The proposed combination would open up new markets for us
 and the means to reach them faster. We are happy to be working with one of the
 premier manufacturing companies in the world and know their experience will
 help us to succeed."
     It is expected that the new venture would be majority owned and controlled
 by Ener1 and managed by a team comprised of both Delphi and Ener1 executives.
 Both parent companies would contribute their lithium battery assets,
 intellectual property and technical resources into this venture.
     The transaction is subject to negotiation of definitive agreements, due
 diligence and necessary corporate and regulatory approvals, as well as certain
 other closing conditions.
     About Ener1, Inc.
     Ener1, Inc. (OTC Bulletin Board:   ENEI) develops and markets new
 technologies and products for clean, efficient energy sources, including fuel
 cell systems and components, high-energy lithium batteries and components, and
 nanotechnology-based materials and manufacturing processes. Ener1's
 technologies and products have applications for industrial, medical, consumer
 and military markets. Potential applications include power tools and
 industrial equipment, medical devices, hybrid vehicle propulsion and military
 communications. For more information on Ener1's technologies and products,
 visit its Web site at http://www.ener1.com.
     Safe Harbor Statement (Ener1, Inc.)
     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, satisfaction of conditions to
 formation of the proposed new company, the ability of Ener1 and the new
 company to successfully develop and market proposed products and services, the
 degree of competition in the market for their lithium battery products and
 services, Ener1's history of operating losses, the lack of any operating
 history for the development stage battery business, the potential need for
 additional capital and the dependency upon key personnel. These and other
 risks are detailed in Ener1's annual report on Form 10-KSB for the year ended
 December 31, 2003, as well as in its other 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.
     About Delphi
     For more information about Delphi and its operating subsidiaries, visit
     Delphi Forward-Looking Statement
     All statements contained or incorporated in this press release which
 address operating performance, events or developments that we expect or
 anticipate may occur in the future (including statements relating to future
 sales or earnings expectations, savings expected as a result of our global
 restructurings or other initiatives, portfolio restructuring plans, volume
 growth, awarded sales contracts and earnings per share expectations or
 statements expressing general optimism about future operating results) are
 forward-looking statements within the meaning of the Private Securities
 Litigation Reform Act of 1995.  These statements are made on the basis of
 management's current views and assumptions with respect to future events.
 Important factors, risks and uncertainties which may cause actual results to
 differ from those expressed in our forward-looking statements are discussed in
 detail in our filings with the Securities and Exchange Commission, including
 our annual report on Form 10-K for the year ended December 31, 2003.  In
 particular, the achievement of projected levels of revenue, earnings, cash
 flow and debt levels will depend on our ability to execute our portfolio and
 other global restructuring plans in a manner which satisfactorily addresses
 any resultant antitrust or labor issues and customer concerns, any contingent
 liabilities related to divestitures or integration costs associated with
 acquisitions, and other matters; the success of our efforts to diversify our
 customer base and still maintain existing GM business; the continued
 protection and exploitation of our intellectual property  to develop new
 products and enter new markets; and our ability to capture expected benefits
 of our cost reduction initiatives so as to maintain flexibility to respond to
 adverse and cyclical changes in general economic conditions and in the
 automotive industry in each market we operate, including customer cost
 reduction initiatives, potential increases in warranty costs, pension
 contributions, healthcare costs, disruptions in the labor, commodities or
 transportation markets caused by terrorism or war and other changes in the
 political and regulatory environments where we do business.  Delphi does not
 intend or assume any obligation to update any of these forward-looking

SOURCE Ener1, Inc.