Ener1 Appoints Carlos E. Mendez-Penate to Board

Oct 13, 2004, 01:00 ET from Ener1, Inc.

    Fort Lauderdale, Fla., Oct. 13 /PRNewswire-FirstCall/ -- Ener1, Inc.,
 (OTC Bulletin Board:   ENEI) (http://www.ener1.com ), an emerging leader in the
 development of advanced lithium batteries, nanotechnology and fuel cells,
 announced today that Carlos E. Mendez-Penate, a partner with the international
 law firm of Coudert Brothers LLP, has joined the company's board of directors.
     (Logo: http://www.newscom.com/cgi-bin/prnh/20040825/FLW010LOGO )
     "Carlos' strong background in corporate banking and international finance
 adds valuable business expertise and worldwide contacts to Ener1," said Kevin
 Fitzgerald, Chairman and Chief Executive Officer of Ener1.  "He has
 successfully represented many large multinational companies in major corporate
 transactions and has excellent business relationships with investment banks
 and financial institutions in the U.S., Europe and elsewhere.  We are
 confident that Carlos' experience and knowledge will prove to be a major asset
 to Ener1 as we forge additional corporate alliances and new business
 opportunities to commercialize our technology portfolio."
     For more than 25 years, Mr. Mendez-Penate has been involved in
 international investing and financing assignments, including work in capital
 markets, acquisitions and joint ventures, banking and acquisitions.  He
 currently is head of Coudert Brothers' Latin American Practice, based in New
 York City.  Mr. Mendez-Penate began his legal career with Cravath, Swaine &
     Mr. Mendez-Penate is a graduate of Yale College and Yale Law School.  He
 is admitted to practice law in Connecticut, New York and Florida.
     The addition of Mr. Mendez-Penate to the Ener1 board of directors is one
 of the steps that the company is taking to broaden its board representation.
 As part of this effort, Ener1 Group, Inc., the company's majority investor,
 has agreed to relinquish one of its three Ener1 board positions to make way
 for Mr. Mendez-Penate's appointment.  In discussing these changes, Mr.
 Fitzgerald added, "We greatly appreciate the efforts and support of Ener1
 Group in expanding our board representation and know that Ener1 Group will
 continue to support us in the future.  In addition, bringing in Carlos as an
 outside board member helps diversify our board."
     About Ener1, Inc.
     Ener1, Inc. (OTC Bulletin Board:   ENEI) develops and markets new
 technologies and products for clean, efficient energy sources, including high-
 energy lithium batteries and components, nanotechnology-based materials and
 manufacturing processes, and fuel cell systems and components.  Ener1's
 technologies and products have potential applications for industrial, medical,
 consumer and military markets, including 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
     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, Ener1's ability to successfully
 develop and market its proposed products and services, the degree of
 competition in the market for Ener1's products and services, Ener1's history
 of operating losses, the lack of any operating history for Ener1's development
 stage battery, nanotechnology and fuel cell businesses, the potential need for
 additional capital and Ener1's 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.
      Media Contact:
      Alys Daly
      954-556-4020 or

SOURCE Ener1, Inc.