Enova Systems Reports Year End Results

TORRANCE, Calif.--April 8, 2004--Enova Systems, Torrance (OTCBB:ENVA), has submitted its year ended December 31, 2003, results to the U.S. Securities and Exchange Commission, reporting revenues of $4.3 million for the year and losses from continuing operations of $2,392,000. Excluding Non-Recurring Charges, operating losses for year ended December 31, 2003, decreased by 34% from the same period in 2002.

Fiscal year 2003 presented many challenges for Enova Systems. The Company, however, believes that it met these challenges, optimized its sales and operations, and progressed to end the year well-positioned to continue to generate sales growth and capture market share in 2004 and beyond.

Notable achievements in 2003 included:

-- Creating several new alliance partnerships with heavy-duty vehicle and system providers in the U.S., Europe, and Asia, including Mack Truck/Volvo, EDO Corporation of New York, Eneco of the United Kingdom, and MTrans of Malaysia.

-- Capitalizing on its successes with Hyundai Motor Company of Korea, Tomoe Engineering of Japan, the U.S. Air Force, Wright Bus of the United Kingdom, and EcoPower Technology of Italy, by providing additional drive systems and enhancing current products for new commercial and industrial transportation needs.

-- Commencing operations of the Hyundai-Enova Innovative Technology Center in Torrance, a joint venture between Enova and Hyundai Heavy Industries of Korea to develop new mobile and stationary advanced digital power management solutions for automotive, transit, and distributed generation applications.

-- Developing and producing a variety of new proprietary, power management and conversion components, including our High Voltage version of our 120kW drive system; Dual 8kW inverter; 380V DC/DC converter; Mobile Fuel Cell Generator; a multi-functional processor; and enhanced versions of our Battery Care Management system, Fuel Cell Management system, and our High Voltage Power Converter. For more detailed product information, please visit Enova's website at www.enovasystems.com.

-- Completing two private placements generating approximately $4.95 million in equity capital in 2003 and early 2004, $2.0 million of which will be invested in the Hyundai-Enova Innovative Technology Center for technology development and commercial sales rights to the technologies developed therein.

"Enova has once again proven its resiliency and viability in the ever changing alternative energy markets," remarked Carl D. Perry, CEO and President. "Our Company has streamlined operations without impinging our productivity or technological expertise. Entering 2004, Enova is leaner and more aggressive than ever with more customers, more products, and more technology and business potential than ever before."

For the year ended December 31, 2003, the Company's $3,186,000 net loss is $411,000 less than the net loss incurred in 2002 of $3,598,000, a decrease of 11%. Excluding bad debt charges of $595,000 for the AVS bankruptcy and the write-down of the Hawaii tram of $200,000, the net loss for the year is $1,206,000 less, or $2,392,000 for the year ended December 31, 2003, over 34% lower than that incurred in 2002. During 2003, Enova reduced non-essential expenses for internal research and development without sacrificing that development necessary to maintain our competitive edge in our markets. We supplemented this reduction by teaming with other companies in our sector such as Mack/Volvo, Hyundai, and the U.S. Government to offset the costs of development for new products in the areas of mobile and stationary power management and conversion. For more detail on the results for the year ended December 31, 2003, please visit Enova's website at www.enovasystems.com.

"Management and the rest of the team at Enova have done an outstanding job in 2003 of improving market share, controlling costs, and providing a clear path to future growth," commented Anthony Rawlinson, Enova's non-executive Chairman. "On behalf of the Board and all those at Enova, I would like to thank James Strock, Enova's former board director, for his contribution to Enova during his tenure. Though we regret that his business and personal obligations have prompted him to move on, we are pleased Jim remains an enthusiastic supporter of Enova."

This news release contains forward-looking statements relating to Enova Systems and its products. These forward-looking statements are subject to and qualified by certain risks and uncertainties. Such statements do not imply the future success of the Company or its products. These risks and uncertainties and other risks are detailed from time to time in Enova Systems' periodic filings with the Securities and Exchange Commission under the name Enova Systems, Inc., including but not limited to Enova's annual report on Form 10-K for the year ended December 31, 2003. Enova assumes no duty to update these statements.