EnerFuel Obtains Notice of Allowance From US Patent Office for Proprietary PEM Fuel Cell Control System Design

Ener1 Fuel Cell Subsidiary Expands IP Portfolio

Sep 15, 2005, 01:00 ET from EnerFuel, Inc.

    FT. LAUDERDALE, Fla., Sept. 15 /PRNewswire-FirstCall/ -- EnerFuel, Inc.,
 the fuel cell subsidiary of alternative energy technology company Ener1, Inc.
 (OTC Bulletin Board:   ENEI), today announced it has received a Notice of
 Allowance from the United States Patent & Trademark Office for a new patent
 for an integrated feedback control system that is designed to improve the
 safety, reliability and lifetime of Proton Exchange Membrane (PEM) fuel cells.
     The integrated feedback control system is designed to allow PEM fuel cells
 to operate more efficiently under variable loads, such as those encountered
 during the braking and accelerating of a fuel cell vehicle.  The system is
 also designed to prevent the drying out of the fuel cell membrane, which can
 cause the fuel cell to quickly deteriorate and may lead to safety hazards,
 including fire.  Both of these design features address critical factors for
 the commercialization of hydrogen technologies in transportation applications.
     "EnerFuel has made great strides in developing its unique technologies and
 know-how as demonstrated by this most recent patent allowance," said Kevin
 Fitzgerald, Chairman and Chief Executive Officer of Ener1.  "The company is
 focused on delivering fuel cell manufacturers and the industry at large
 innovations that will advance the safety and performance of their fuel cells,
 and thus help make hydrogen energy a commercial reality sooner."
     EnerFuel's control system design incorporates a novel self-regulating
 feedback mechanism that supplies hydrogen and air to the anode and cathode of
 the fuel cell stack by using a system of pressure regulators and pumps.  The
 feedback system controls the flow of fuel and oxidant gases required to
 maintain and maximize the electrochemical reaction of the fuel cell stack
 under varying current loads.
     Other features of the fuel cell control system include the ability to
 regulate the water concentration, which is critical to the long-term operation
 of the fuel cell system.  Without proper water regulation (a by-product of the
 electrochemical reaction of a fuel cell), over drying of the fuel cell can
 occur. When fuel cell membranes become dehydrated, holes or voids in the fuel
 cell membrane can occur, resulting in the risk of fire or explosion from the
 direct mixing of hydrogen and oxygen.  The EnerFuel control system is designed
 to essentially eliminate this potential safety hazard.
     About Ener1
     Ener1, Inc (OTC Bulletin Board:   ENEI) (www.ener1.com) 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, 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, 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.

SOURCE EnerFuel, Inc.