Ener1 Inc. Chairman Charles Gassenheimer commented, "The continued vote of confidence of our majority shareholder is an indication of their faith in our technologies, and in the potential rewards of the markets we will serve -- primarily Hybrid Electric Vehicles and Hydrogen Fuel Cells for transportation and other purposes. We appreciate this new financing, and look forward to achieving major milestones this year in both our principal planned product lines."

The new financing follows on $5.52 million in equity financing announced by the Company in February of this year and which was provided over the last several months from Ener1 Group's exercise of 69 million $.08 warrants originally issued in 2002, which warrant financing was also recently completed. Pursuant to the Company's agreement with Ener1 Group for the warrant financing, as filed with the SEC, at the completion of the warrant financing, the Company issued to Ener1 Group 20 million immediately exercisable, ten-year warrants to purchase shares of the Company's common stock at $.50 per share.

The notes are subordinated in all respects to the rights of the holders of the Company's senior secured convertible debentures due 2009, issued in 2004 and 2005. The notes are convertible into shares of Ener1, Inc. common stock at $.50 per share at the election of the holder. In connection with the notes, the Company issued nine million immediately exercisable, five year warrants to purchase shares of the Company's common stock at an exercise price of $.50 per share.

The new convertible subordinate note financing brings the Company's total financing from Ener1 Group to approximately $8.4 million over the last several months, reflecting the increased level of attention and support from the Company's majority shareholder that has followed the Company's management reorganization of Ener1 in the beginning of this year.

About Ener1, Inc.

Ener1, Inc. (BULLETIN BOARD: ENEI) is an alternative energy technology company. The company's interests include: 80.5% of EnerDel (http://www.enerdel.com/), a lithium battery company in which Delphi Corp. owns 19.5%; 48% of Enerstruct, a Japanese lithium battery technology company in which Ener1's strategic investor ITOCHU owns the majority interest; wholly owned subsidiary EnerFuel, a fuel cell products and services company (http://www.enerfuel.com/); and wholly owned subsidiary NanoEner, which develops nanotechnology-based materials and manufacturing processes for batteries and other applications (http://www.nanoener.com/). For more information, visit http://www.ener1.com/.