Ener1 Installs First Phase Production Line

EnerDel Increases Manufacturing Capabilities With an Eye Toward Becoming

One of the Largest Li-Ion Battery Producers in North America for HEV/EV


Sep 12, 2006, 01:00 ET from Ener1, Inc.

    FORT LAUDERDALE, Fla., Sept. 12 /PRNewswire-FirstCall/ -- Ener1, Inc.,
 (OTC Bulletin Board:   ENEI) announced today that its EnerDel battery company
 has installed its first mass production line for lithium ion (Li-Ion)
 battery electrodes at the company's Indiana facility. The production line
 is capable of producing the electrode equivalent of 5,000 Hybrid Electric
 Vehicle (HEV) batteries (25KW) per month.
     The investment in this new equipment is an important step forward in
 the Company's plan to become a leading, U.S.-based supplier of Li-Ion
 batteries for automotive applications. EnerDel can now demonstrate its
 production approach and expertise to automotive companies and OEMs, as well
 as begin their required qualification process to mass produce batteries for
 their future HEV models.
     EnerDel's production line also supports the company's work with the
 United States Advanced Battery Consortium (USABC), a part of the U.S.
 Council for Automotive Research a group for collaborative research among
 DaimlerChrysler Corp., Ford Motor Co. and General Motors Corp. The USABC is
 focused on securing a supply of U.S.-based Li-Ion batteries for the U.S.
 auto industry. In June, USABC awarded EnerDel a contract to produce a new
 Li-Ion battery based on advanced battery materials and low-cost production
 technologies. The funding validates EnerDel's path to produce a battery
 that is lighter, smaller and higher in power than existing HEV batteries.
     EnerDel's production line includes two Hirano Tecseed Coaters, along
 with the required facility infrastructure. Ulrik Grape, President of
 EnerDel stated, "We've invested in the best production equipment for
 launching the manufacturing program. From a quality control standpoint, it
 is vital to have two coating lines to allow us to handle the coating of
 anodes and cathodes separately to avoid any contamination."
     He added, "Our Engineering team, one of our strongest assets, is making
 the necessary modifications to the equipment in order to achieve stable and
 low cost production based on their vast experience scaling up Li-Ion
 battery production technology in Japan and Korea where 99% of all Li-Ion
 battery production is located."
     EnerDel believes that securing a local, U.S.-based supply of Li-Ion
 batteries for hybrid vehicles is crucial to the success of automotive
 manufacturers producing hybrids in North America. The U.S. is the largest
 market for HEVs and the majority of the cars sold in the U.S. are also
 manufactured here.
     Charles Gassenheimer, Chairman of Ener1, Inc. commented, "The goal here
 is to reduce the dependence on foreign oil. It doesn't make sense to switch
 our reliance on foreign oil to a dependence on a foreign supply of Li-Ion
 Batteries for cars and trucks."
     He added, "Our strategy is to become one of the first companies to
 ensure a domestic supply of Li-Ion batteries. I am pleased with the
 progress we are making in our ability to address this challenge for the
 U.S. automotive industry."
     About Ener1, Inc.
     Ener1, Inc. (OTC Bulletin Board:   ENEI) is an alternative energy
 technology company. The company's interests include: 80.5% of EnerDel
 (http://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 products and testing services company
 (http://www.enerfuel.com), and wholly owned subsidiary NanoEner, which
 develops nanotechnology-based materials and manufacturing processes for
 batteries and other applications (http://www.nanoener.com). For more
 information, visit http://www.ener1.com or call 954-556-4020.
     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: Ener1's ability to succeed as a
 supplier of batteries to the hybrid electric vehicle and other markets;
 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; EnerFuel's ability to develop and
 sell products and services in its planned markets; 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 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.

SOURCE Ener1, Inc.