FT. LAUDERDALE, Fla., June 30 /PRNewswire-FirstCall/ -- Ener1, Inc. (OTC Bulletin Board: ENEI) announced today that it has obtained additional long term financing from its majority shareholder, privately held Ener1 Group, Inc., to fund the Company's ongoing operations. The $3.0 million financing consists of 10% convertible subordinated notes with no principal or interest payments until maturities of the notes in 2009, plus warrants. Ener1 Inc. Chairman Charles Gassenheimer commented, "The continued vote of confidence of our majority shareholder is an indication of their faith in our technologies, and in the potential rewards of the markets we will serve -- primarily Hybrid Electric Vehicles and Hydrogen Fuel Cells for transportation and other purposes. We appreciate this new financing, and look forward to achieving major milestones this year in both our principal planned product lines." The new financing follows on $5.52 million in equity financing announced by the Company in February of this year and which was provided over the last several months from Ener1 Group's exercise of 69 million $.08 warrants originally issued in 2002, which warrant financing was also recently completed. Pursuant to the Company's agreement with Ener1 Group for the warrant financing, as filed with the SEC, at the completion of the warrant financing, the Company issued to Ener1 Group 20 million immediately exercisable, ten-year warrants to purchase shares of the Company's common stock at $.50 per share. The notes are subordinated in all respects to the rights of the holders of the Company's senior secured convertible debentures due 2009, issued in 2004 and 2005. The notes are convertible into shares of Ener1, Inc. common stock at $.50 per share at the election of the holder. In connection with the notes, the Company issued nine million immediately exercisable, five year warrants to purchase shares of the Company's common stock at an exercise price of $.50 per share. The new convertible subordinate note financing brings the Company's total financing from Ener1 Group to approximately $8.4 million over the last several months, reflecting the increased level of attention and support from the Company's majority shareholder that has followed the Company's management reorganization of Ener1 in the beginning of this year. 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%; 48% of Enerstruct, a Japanese lithium battery technology company in which Ener1's strategic investor ITOCHU owns the majority interest; wholly owned subsidiary EnerFuel, a fuel cell products and 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; 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 email@example.com firstname.lastname@example.org
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