Ener1 Nanotech Unit Prepares to Commercialize Revolutionary Battery Electrodes

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    FT. LAUDERDALE, Fla., Feb. 14 /PRNewswire-FirstCall/ -- Ener1, Inc.
 (OTC Bulletin Board:   ENEI) announced today that its NanoEner, Inc. subsidiary
 has established and equipped a pilot nanotechnology-based manufacturing
 facility to fabricate electrodes for high discharge rate, lithium-ion
 batteries.  The company's battery subsidiary, EnerDel, Inc., in which Delphi
 Corporation holds a 19.5% interest, is in discussions with automotive OEMs
 regarding evaluation of samples for use in hybrid electric vehicles where the
 high discharge rate characteristic is viewed as key to performance and cost.
 EnerDel also plans to explore applications of this technology in other
 markets.
     (Logo:  http://www.newscom.com/cgi-bin/prnh/20040825/FLW010LOGO )
     The company's new nanotechnology based manufacturing process can be used
 to produce electrodes (anode and cathode) with substantially more power output
 and higher discharge rates (both key factors in meeting the higher performance
 requirements for lithium-ion batteries for hybrids and other applications), as
 well as much faster recharging times.  The company believes that its
 proprietary nanotechnology process for producing electrodes, which is based on
 its proprietary vapor deposition process and equipment, represents a major
 innovation in battery technology that could greatly improve performance in
 many existing and emerging battery-powered applications.
     "The automotive industry (and many other industries as well) are looking
 for a high-power battery solution that will enable their next generation
 products to become a reality at a cost that is commercially viable," said
 Pankaj Dhingra, who, as earlier announced, joined Ener1, Inc. in December as
 its Energy Group President, coming from Delphi Corporation where he oversaw
 their Energy Systems Group. "I believe the performance advantages and
 efficiencies offered by our nanotechnology provide that solution, and our new
 pilot facility is a big step in that direction."
     The Company's new facility has three beta-phase apparatus stations with
 specially designed software-based controls for continuous fine-tuning and
 monitoring of all aspects of the vapor deposition-based, nanoproduction
 process, which allows maintenance of desired electrode structures to the nano
 level.  All of the proprietary production equipment and related-nanotechnology
 processes used in the facility were designed by the company's scientists and
 engineers.
     Utilizing improved processes for deposition of thin films to form the
 electrodes, the company's nanotechnology-based production process employs the
 vapor deposition technique to precisely and efficiently deposit electrode
 materials with the electrode structures needed for extremely high discharge
 rates.  The results are more power and a high rate of discharge -key
 requirements not only for hybrid batteries, but also for other applications
 that require quick bursts of power.  The company's new electrode production
 system also allows for the use of low cost raw materials and eliminates the
 need for undesirable additives such as binders and solvents that can slow a
 battery's rate of power output.  The company believes these advantages will
 make its nanotechnology-based production process far superior to existing
 electrode manufacturing processes as well as highly competitive with other
 nano-related methods to produce high-powered electrodes.
     Ener1 has been working on its nanotechnology and nanoproduction processes
 for many years and also has collaborated with Enerstruct Inc., the joint
 venture company that Ener1 owns with ITOCHU Corporation, a multi-billion
 dollar Japanese industrial company that has invested several million dollars
 in Ener1.  Further support for the company's technology has come from results
 of an independent test performed at a major Japanese university last year,
 which indicated that electrodes produced with the company's nanotechnology are
 capable of discharge rates many times higher than current lithium ion
 batteries.  Those results were published in a leading Japanese electronics
 journal, Nikkei Electronics, as described more fully in a previous press
 release by the company.
     Kevin Fitzgerald, Ener1's Chairman and CEO, added "We have seen very
 promising results in electrodes produced using our prototype equipment and
 expect them to further improve.  The pilot facility brings us much closer to
 the commercialization of our nanotechnology in lithium batteries.  It will
 also enable us to explore other market opportunities in our areas of interest,
 such as fuel cells, super capacitors and even electronic wires, all of which
 will benefit from the high discharge rates and other performance and cost
 advantages of our nanotechnology."
 
     About Ener1, Inc.
     Ener1, Inc. (OTC Bulletin Board:   ENEI) develops and markets new
 technologies and products for clean, efficient energy sources.  Ener1 markets
 lithium batteries and battery packs through EnerDel, its majority-owned
 venture with Delphi Corp. Ener1 also develops and markets nanotechnology-based
 materials and manufacturing processes and components through its NanoEner,
 Inc. subsidiary.  Ener1 develops selected fuel cell components and provides
 fuel cell related testing services through its EnerFuel, Inc. subsidiary.
 Ener1's products have applications for markets that include power tools and
 industrial equipment, medical devices, hybrid vehicle propulsion and military
 communications. For more information on Ener1's products, please visit its Web
 site at 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, the ability of Ener1
 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 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.
 
      CONTACT: Alys Daly of Ener1 Inc., +1-954-556-4020
 
 

SOURCE  Ener1 Inc.