Ener1 Files Two Patents for New Fuel Cell Technology

Company Advances IP Portfolio With PEM Cold Start Capabilities and Alkaline Control System

FORT LAUDERDALE, Fla., May 10 -- Ener1, Inc. (BULLETIN BOARD: ENEI) , an emerging leader in the development of advanced lithium batteries and fuel cell technologies, announced today that the company has filed a U.S. patent application for a new method and apparatus that enables the rapid start-up of a proton exchange membrane (PEM) fuel cell in sub-zero temperatures without the use of external devices. Cold start performance capabilities are crucial to the development of fuel cells for automotive applications.

"Ener1's goal is to provide fuel cells that are safe, reliable and comparable in performance to conventional combustion engines, three factors that will contribute to the commercial success of electric vehicles," said Kevin P. Fitzgerald, Chief Executive Officer and Chairman of Ener1. "Our design and method in cold-starting adds to our growing intellectual property portfolio in fuel cell technology and will make Ener1's fuel cells more attractive to the automotive industry."

Ener1's approach for cold starting is to heat the fuel cell by a self- regulating exothermal chemical reaction between hydrogen and oxygen that takes place uniformly over the cathode catalyst. The process is designed to provide controlled, safe and fast heating of the fuel cell without the use of additional external devices.

Ener1's cold-start technology was developed to work with the company's patent-pending fuel cell integrated feedback control system. Ener1's fuel cell control system will feature other performance enhancements that are required for transportation applications, including the ability to operate efficiently under difficult conditions such as peak acceleration and braking. Its water management controls are intended to prevent over-drying of the fuel cell membrane, which can cause deterioration and lead to potential safety hazards.

Ener1 also announced that it has filed a U.S. patent application for its alkaline fuel cell control system. This system features many of the same benefits as the company's PEM fuel cell integrated feedback control system. Potential applications for Ener1's alkaline fuel cell system include air and space craft, submarines, and stand-by generators.

Ener1 expects to complete its PEM fuel cell control system prototype by the first half of next year. Production will take place at Ener1's manufacturing facility in Ft. Lauderdale, Florida.

"We have a team of scientists with fundamental experience in the design and manufacture of fuel cells, much of which was gained while developing electrical power generation and storage systems for advanced space programs," said Fitzgerald. "Our practical experience and demonstrated ability to develop fuel cells that are high-performance, reliable and safe are strong competitive advantages for Ener1."

Media contact: Alys Daly, Vice President of Public and Investor Relations, Ener1, Inc., 954-556-4020, ext. 319; cellular: 305-815-0312; adaly@ener1.com

About Ener1, Inc.

Ener1, Inc. (BULLETIN BOARD: ENEI) develops and markets new technologies and products for clean, efficient energy sources including high- energy lithium batteries, fuel cells and solar cells. Ener1's technologies and products have applications for military, industrial and consumer markets, ranging from lightweight battery packs for military field use and high-end consumer applications to fuel cells and high-rate lithium-ion batteries for electric vehicles. For more information, visit the company's Web site at http://www.ener1.com/ or call (954) 556-4020.

Safe Harbor Statement (ENER1, Inc.)

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 include risks and uncertainties, including, but not necessarily limited to, Ener1's ability to successfully develop and market its proposed products and services, the degree of competition in the market for Ener1's products and services, Ener1's history of operating losses, the lack of any operating history for Ener1's development stage battery and fuel cell business, the potential need for additional capital and Ener1's dependency upon key personnel. These and other risks are detailed in Ener1's annual report on Form 10-KSB for the year ended December 31, 2003, 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.