Investment Executive Charles Gassenheimer to Join Ener1, Inc. as Chairman of the Board

Jan 17, 2006, 00:00 ET from Ener1, Inc.

    FT. LAUDERDALE, Fla., Jan. 17 /PRNewswire-FirstCall/ -- Ener1, Inc. (OTC:
 ENEI), announced today that it plans to name Charles Gassenheimer Chairman of
 its Board of Directors, the appointment to be finalized later this week after
 completion of the normally required corporate actions.
     Mr. Gassenheimer was most recently with Satellite Asset Management, a
 hedge fund with approximately $6 billion in assets under management and
 offices in New York and London, serving as Managing Director and Portfolio
 Manager of both the Convertible Arbitrage Division and Private Investment
     Mr. Gassenheimer will work closely with Ronald Stewart, Ener1's recently
 named Interim Chief Executive Officer and Interim Chief Financial Officer, to
 lead Ener1, Inc. going forward.
     Mr. Gassenheimer noted "I have been involved with Ener1 as an investor for
 the last two years and continue to believe strongly in the company's
 potential. I think that Ener1's technologies and capabilities, specifically in
 the areas of lithium batteries for next generation hybrid electric vehicles
 and in the area of fuel cells products and services, can become commercially
 viable alternative energy solutions."
     He added, "Recent changes in Ener1's senior management were necessary to
 move the company forward.  With these changes in place and with proper
 management and financing from now on, I believe we will able to make
 significant progress quickly."
     Before joining Satellite, Mr. Gassenheimer was Portfolio Manager and head
 of the distressed securities investment group of Tribeca Investments, Ltd.
 Tribeca is the hedge fund division of Citigroup Global Investments.  Prior to
 that he served as a Vice President at Credit Suisse First Boston where he was
 a senior credit analyst within the global convertible bond division and
 Investment Manager of a proprietary hedge fund focused on private investments
 in public equities.  Throughout his career Gassenheimer has been responsible
 for sourcing, structuring and managing hundreds of debt and equity investments
 in both the private and public marketplaces.
     In a separate announcement, Mr. Gassenheimer has been named Chief
 Executive Officer of Ener1 Group, the majority shareholder of Ener1, Inc.
     About Ener1, Inc.
     Ener1, Inc (OTC: ENEI) is an alternative energy technology company. The
 Company's interests include: 80.5 percent of EnerDel, a lithium battery
 company in which Delphi Corp. owns 19.5 percent; 49 percent of Enerstruct, a
 Japanese lithium battery technology company in which Ener1's strategic
 investor ITOCHU owns 51 percent; wholly owned subsidiary EnerFuel, a fuel cell
 products and services company; and wholly owned subsidiary NanoEner, which
 develops nanotechnology-based materials and manufacturing processes for
 batteries and other applications.
     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;
 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:   Joe Allen (investors)              Alys Daly
                Allen & Caron Inc                  Ener1, Inc.
                212 691 8087                       954 202 4442
                       305 815 0312

SOURCE Ener1, Inc.