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,"
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.
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.