Environmental Services News

EnerDel Wins U.S. Army Contract to Develop Batteries for New 'Hybrid Humvee'

   Program Will Test EnerDel's High-Performance Solutions Under the Most
                             Extreme Conditions

    INDIANAPOLIS, Nov. 5 /PRNewswire-FirstCall/ -- Automotive lithium-ion
battery maker EnerDel, Inc. announced today that it will be working with
the United States Army to develop a next-generation battery system for the
hybrid version of the iconic High Mobility Multipurpose Wheeled Vehicle
(HMMWV or Humvee), known as the XM1124 Humvee. The company, a subsidiary of
Ener1, Inc. (Nasdaq: HEV), has received a $1.29 million contract to design
and build high-performance lithium-ion battery systems for two different
applications, drawing on its expertise in multiple-chemistry solutions and
ability to provide a complete architecture in cell chemistry, electronics
and battery systems design.

    "This is an opportunity to showcase the true capabilities of the
EnerDel technology in conditions that demand the highest levels of safety,
performance and reliability," said Rick Stanley, EnerDel President. "In
keeping with a long tradition, we also expect that innovations perfected
here will have important benefits for the commercial markets."

    EnerDel will spend the next 18 months collaborating with the U.S. Army
Tank Automotive Research, Development and Engineering Center (TARDEC) to
produce four custom-built power systems that will be subjected to extreme
performance simulations.

    TARDEC will be testing two of EnerDel's battery chemistries. In
addition to its lithium-manganese spinel chemistry, best suited for
extending electric vehicle range or electronic systems runtime, the program
will also be testing EnerDel's lithium-titanate system, an advanced
chemistry developed in collaboration with Argonne National Laboratory in
Chicago, designed for extreme high-power hybrids that require hard
acceleration and braking.

    While the XM1124 Humvee is already significantly more efficient than
the conventional M1113 Humvee, boasting a higher top speed, faster
acceleration, longer range and improved fuel economy, expectations are that
the new, upgraded battery packs will greatly increase the peak power
capability of the current demonstration vehicles.

    In addition, the robust battery technology will also include an
all-electric "silent watch" capability which will power the electronics or
traction motor without running the truck's diesel generator, significantly
reducing both the audible and thermal signatures of the vehicle, making it
easier to escape detection by hostile parties. An EnerDel-equipped XM1124
Humvee could also function as a portable power plant to power a mobile
command post or field hospital.

    TARDEC, part of the U.S. Army Research, Development and Engineering
Command (RDECOM), is headquartered at the Detroit Arsenal in Warren,
Michigan. It is the nation's laboratory for advanced military automotive
technology. TARDEC develops and integrates technology solutions to improve
the effectiveness of the current force and realize the superior capability
of the future force. Its technical staff leads research in ground vehicle
survivability, mobility, intelligent systems and maneuver support and
sustainment.

    The TARDEC award further spurs Ener1's business momentum. The company
has announced active relationships with Think Global, Fisker and Volvo and
has a research program with Nissan and Argonne National Laboratory. Ener1
was recently selected to be awarded a $118.5 million grant from the U.S.
Department of Energy under the Federal Stimulus program and is awaiting
approval of additional long-term, low-interest loan funds under the
Department's Advanced Technology Vehicle Manufacturing program. EnerDel's
two factories in Indianapolis are the first, and so far only,
commercial-scale, automotive-grade lithium-ion battery manufacturing
facilities in the United States.

    About Ener1, Inc.

    Ener1 develops and manufactures compact, high performance lithium-ion
batteries to power the next generation of hybrid, plug-in hybrid and pure
electric vehicles. The publicly traded company (Nasdaq: HEV) is led by an
experienced team of engineers and energy system experts at its EnerDel
subsidiary located in Indiana. In addition to the automobile market,
applications for Ener1 lithium-ion battery technology include the military,
grid storage and other growing markets. Ener1 also develops commercial fuel
cell products through its EnerFuel subsidiary and nanotechnology-based
materials and manufacturing processes for batteries and other applications
through its NanoEner subsidiary.

    Safe Harbor Statement

    Certain statements made in this press release constitute
forward-looking statements that are based on management's expectations,
estimates, projections and assumptions. Words such as "expects,"
"anticipates," "plans," "believes," "scheduled," "estimates" and variations
of these words and similar expressions are intended to identify
forward-looking statements. Forward-looking statements are made pursuant to
the safe harbor provisions of the Private Securities Litigation Reform Act
of 1995, as amended. These statements are not guarantees of future
performance and involve certain risks and uncertainties, which are
difficult to predict. Therefore, actual future results and trends may
differ materially from what is forecast in forward-looking statements due
to a variety of factors. All forward-looking statements speak only as of
the date of this press release and the company does not undertake any
obligation to update or publicly release any revisions to forward-looking
statements to reflect events, circumstances or changes in expectations
after the date of this press release.

    MEDIA RELATIONS

    Jon Coifman

    Waggener Edstrom Worldwide

    Phone: 212 551 4815

    Email: jcoifman@waggeneredstrom.com

    INVESTOR RELATIONS

    Rachel Carroll

    ENER1, Inc.

    Phone: 212 920 3500

    Email: rcarroll@ener1.com