Ener1 Names CEO for Lithium Battery Business

Industry Veteran to Lead EnerDel Into Hybrid Electric Vehicle Battery and

Other Key Markets

Oct 04, 2005, 01:00 ET from Ener1, Inc.

    FORT LAUDERDALE, Fla., Oct. 4 /PRNewswire-FirstCall/ -- Ener1, Inc.
 (OTC Bulletin Board:   ENEI) announced today that Ulrik Grape has joined its
 EnerDel battery subsidiary as its Chief Executive Officer.
      (Logo:  http://www.newscom.com/cgi-bin/prnh/20040825/FLW010LOGO )
      EnerDel expects to immediately benefit from Mr. Grape's more than 18
 years of relevant experience in senior management, business development,
 manufacturing and finance.  Previously, Mr. Grape spent 10 years with
 Danionics A/S, an international lithium battery company headquartered in
 Denmark, where he was Sales and Marketing Director and Vice President U.S.  At
 Danionics, he successfully secured major contracts for its lithium-ion
 polymer rechargeable battery product line and developed strong customer
 relationships with leading U.S. portable electronic product manufacturers.
     Kevin Fitzgerald, Chief Executive Officer of Ener1, commented, "Ulrik's
 appointment as EnerDel's CEO is excellent timing for us on two critical
 counts.  First, we believe that his track record in the lithium-ion battery
 industry will provide EnerDel with invaluable competitive advantages that will
 enable EnerDel to take the lead in technology and marketing for supplying the
 U.S. hybrid electric vehicle (HEV) industry with next-generation battery power
 sources.  We are convinced that the success Ulrik demonstrated in his previous
 battery industry posts will give EnerDel a clear insight and advantage in
 serving the needs of the U.S. HEV marketplace.  Secondly, Ulrik's prior
 experience as a key member of a management team that successfully conducted an
 initial public offering will be invaluable to EnerDel."
     On September 6, 2005, Ener1 announced its proposed plan to spin-off the
 common stock of EnerDel and the other operating subsidiaries in its
 alternative energy business divisions, eventually making them stand-alone
 companies, the spin-offs being subject to Ener1's ability to obtain any
 necessary regulatory approvals and raise capital to fund the operations of the
 new public companies.
     Mr. Grape added, "I am gratified by the confidence Ener1 and its board of
 directors has placed in my abilities to lead and position EnerDel in the
 marketplace.  We are now at a critical juncture in the history of EnerDel's
 lithium-ion battery technology, manufacturing processes, and market
 penetration.  I believe that we are poised for tremendous growth.  I look
 forward to assembling a world-class management team that will get the job
 done, taking EnerDel to the next level within the lithium-ion battery
     Grape has also held senior executive positions in other competitive,
 international industries, including the airline and construction equipment
 industries.  These include positions as Managing Director for Volund A/S, a
 privately held Danish industrial group manufacturing mobile access platforms
 and other structures and Associate at Trap & Kornum A/S, a mergers and
 acquisition firm operating in the Scandinavian market.  Mr. Grape earned a
 Bachelor's degree in International Politics and Affairs from
 Georgetown University and a Masters of Business Administration degree from
 French business school INSEAD.
     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%; 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
     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; 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
                michaelm@allencaron.com      adaly@ener1.com

SOURCE Ener1, Inc.