FT. LAUDERDALE, Fla., Sept. 6 /PRNewswire-FirstCall/ -- Ener1, Inc.
(OTC Bulletin Board: ENEI) announced today that its board of directors has
authorized a plan to spin-off the common stock of its three primary
alternative energy subsidiaries to the Ener1 stockholders. The Ener1 board
believes that each of EnerDel, NanoEner and EnerFuel has made significant
progress in developing their technologies and business strategies such that
each of these companies could successfully achieve its business plan as a
stand-alone company. The Company's board has instructed senior management to
implement the proposed plan to spin-off Ener1's interest in each of EnerDel,
NanoEner and EnerFuel.
Any spin-off of these Ener1 subsidiaries will be subject to the receipt of
applicable regulatory and third-party approvals and adequate financing, which
Ener1 may seek in the public or private equity or debt markets. If the
Company is able to satisfy these conditions, it anticipates that the board
would declare a dividend to distribute the stock of its three operating
subsidiaries within the next six months. As a result of this distribution by
Ener1 to its shareholders, EnerDel, NanoEner and EnerFuel would each become a
public reporting company under federal securities laws. In this regard, the
Company will adjust the capitalizations and the number of outstanding shares
of each spun off company so that each will have the ability to more easily
qualify for listing at appropriate exchanges.
CEO Kevin Fitzgerald said, "Our three operations -- EnerDel, NanoEner and
EnerFuel -- are alike in that they all concentrate on renewable power sources
and related technologies. But they need to go in different directions now.
They need to have access to capital and to be able to find strategic partners
who can maximize the potential of their technologies. We believe the best way
to accomplish this is to spin off the three 'pure plays' to the existing
shareholders, subject to ensuring that each company is adequately capitalized.
We believe all three companies will have excellent management teams, comprised
in part by Ener1 executives, who will stand them in good stead."
EnerDel Inc., Ener1's lithium battery business, has a new team of lithium
specialists who are developing an advanced, high-rate battery primarily for
the hybrid electric vehicle (HEV) market. As we announced on June 29, 2005,
EnerDel is working with EnerStruct, a joint venture formed by Ener1 and ITOCHU
Corporation, to consolidate its lithium Battery production facilities in
Ft. Lauderdale and implement a new, automated manufacturing process developed
by EnerStruct. EnerDel believes this new mobile, module type process will
make its battery production operations more cost-competitive, as well as
locate them closer to HEV manufacturers and other potential EnerDel customers
with US production operations.
NanoEner Inc. has developed a proprietary technology for the production of
nanostructured thin-film coatings for use in battery electrodes. NanoEner
plans to expand its unique platform technology into other markets for
nanomaterials, including thin-film photovoltaic solar cells, fuel cell
components, super capacitors and thin-film sensors. NanoEner has built and is
operating four prototype machines that produce samples of battery electrodes
that demonstrate the capabilities of NanoEner's technologies.
EnerFuel Inc. is positioned to address the needs of the fuel cell market
in the near future. It has developed unique test fixtures and components that
it is marketing to other fuel cell manufacturers. EnerFuel has won an
innovative partnership with the State of Florida to develop a direct methanol
fuel cell to power a rest area along a Florida highway and act as a test bed
and demonstration platform for EnerFuel's renewable energy technologies.
EnerFuel's long-term plans also include developing its proton exchange
membrane fuel cell control system to provide high reliability, long life-time
and safety of fuel cell-based power sources.
"We are confident that these subsidiaries are ready to become independent
companies," said Fitzgerald. "We believe that the shareholders of Ener1 would
benefit through ownership of stock in three companies each pursuing different
market opportunities in the alternative energy industry."
In addition to receiving shares in the three companies, Ener1 shareholders
would retain ownership of their Ener1 common stock, which would seek new
investments in technology following the proposed spin-off.
Mr. Fitzgerald commented further that "Our first priority is to secure
sufficient financing for the proposed transaction, and we intend to act
expeditiously to accomplish this. We believe that the technologies and
intellectual property of EnerDel, NanoEner and EnerFuel make them compelling
This press release is neither an offer to sell nor a solicitation of an
offer to buy any securities issued by Ener1, Inc., EnerDel, Inc., NanoEner,
Inc. or EnerFuel, Inc. These securities may not be offered or sold in the
United States absent registration or an applicable exemption from registration
About Ener1, Inc.
Ener1, Inc (OTC Bulletin Board: ENEI) is an 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
testing and component 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 (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, the ability of Ener1 to complete
the proposed spin-off of its equity interests in EnerDel, Inc., NanoEner, Inc.
and EnerFuel, Inc., including securing financing to adequately capitalize each
company and obtaining required regulatory and third-party approvals;
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 Ener1's annual report on Form 10-KSB for the year ended December 31, 2004,
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.
Contact: Michael Mason (investors) Alys Daly
Allen & Caron Inc Ener1, Inc.
212 691 8087 954 556 4020
SOURCE Ener1, Inc.