Ener1 Batteries to Provide More Power in Less Space for Hybrid Cars

FORT LAUDERDALE, Fla.--May 8, 2006--ENER1 Inc., (OTC/BB: ENEI), an alternative energy company, announced today that its senior management team will present the company's technology at the 2nd Annual Merriman Curhan Ford & Co., Next Generation Energy Conference, to be held at the Essex House in New York City on May 1, 20065, 2006. Ulrik Grape, President of EnerDel, Ener1's lithium ion (Li-Ion) battery company, will discuss the Indiana based firm's plan to market a power system based on advanced materials, design and production process that it believes will improve the cost, performance and fuel efficiency of hybrid electric vehicles (HEVs). Rex Hodge, President of EnerFuel, Ener1's fuel cell company, will discuss EnerFuel's near-term product development and the longer-term applications of the fuel cell technologies the company is developing.

The organizers of the conference, Merriman Curhan Ford & Co., initiated coverage on the alternative energy sector nearly two years ago and hosted its first conference on the sector last May. This year's conference will feature a select group of companies focused on fuel cells, batteries, solar power and other alternative energy technologies and is expected to attract over 300 institutional investors and other participants from around the U.S. and abroad. It comes at a time when the U.S. government and the public are grappling with rising gas prices and resulting pressure to embrace alternative energy technologies in areas such as HEVs for both economic and security reasons.

EnerDel is applying advanced materials, technology and production processes to develop high-powered Li-Ion battery packs for the rapidly growing HEV market. The company believes that its approach will substantially improve the performance, cost and fuel efficiency of HEVs, and thus further increase the demand for hybrid electric vehicles. EnerDel will reduce the size and weight of the HEV battery compared to existing technologies including nickel metal hydride batteries used to power many of the hybrid models on the road today. "We were among the first to recognize the needs of U.S. auto manufacturers and car buyers alike in this regard and we are moving quickly toward providing a battery that packs more punch, in less space, and is much lighter then those currently used," Mr. Grape said.

About Ener1, Inc.

Ener1 Inc (OTC Bulletin Board: ENEI) is an alternative energy technology company. Its interests include: EnerDel (www.enerdel.com), a lithium-ion battery company in which Delphi Corp. owns a minority interest, Japan-based Enerstruct, a lithium-ion company in which Ener1 strategic investor ITOCHU Corporation has a major interest; wholly owned subsidiary EnerFuel, a fuel cell products and services company (www.enerfuel.com), and wholly owned subsidiary NanoEner, which develops nanotechnology-based materials and manufacturing processes for high-power batteries and other applications (www.nanoener.com). For more information, visit http://www.ener1.com.

Editor's Note:

Ulrik Grape, President of EnerDel, and Charles Gassenheimer, Chairman of Ener1 Inc., will be available to discuss the progress made by hybrid electric vehicles, consumer attitudes about these gas saving automobiles and the development of the company's new lithium battery which will contribute toward U.S. auto makers creating more hybrids for U.S. consumers.

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