Ener1 Chairman's Letter to Shareholders

FORT LAUDERDALE, Fla., April 7 -- Ener1, Inc. (BULLETIN BOARD: ENEI) Chairman Charles Gassenheimer today issued the following letter to Ener1 shareholders and interested members of the investment community.

Dear Shareholder,

Progress, focus and fiscal responsibility are themes that characterize the developments at Ener1 since my last shareholder's letter dated January 31, 2006.

I am pleased to report that the company has been relisted on NASDAQ Over-The-Counter Bulletin Board. This is an important milestone for our company and one that indicates the solid foundation for growth precipitated by our new management team, led by Interim Chief Executive Officer Ron Stewart and Chief Financial Officer Gerard Herlihy. Their dedication and long hours are recognized by Ener1's Board of Directors, as well as the entire Ener1 team.

This accomplishment, while significant, only tells part of the Ener1 story. The heads of our operating companies, Ulrik Grape, President of EnerDel, and Rex Hodge, President of EnerFuel, are making strides to advance their businesses. For example, EnerFuel is partnering with fuel cell companies and producers of alternative fuels, such as methanol and ethanol, on numerous Department of Energy funded proposals. This shows the confidence the fuel cell industry has in our team and their capabilities as a competent partner in the development of cutting-edge fuel cell technologies. The company's engineers are working on the launch of their first product -- a component that will be sold to fuel cell system manufacturers to enhance the performance of their fuel cell systems. We expect this product to debut this summer.

EnerDel is producing lithium-ion cells for internal testing and evaluation, an important step towards sampling our batteries for hybrid electric vehicles (HEVs) with potential customers in the automotive sector. These cells will be produced using a proprietary, automated manufacturing technology that is fundamental to our competitive strategy. This technology should enable EnerDel to cost-competitively mass-produce its lithium-ion batteries in the United States. We plan to produce these batteries in Indiana. Our goal is to help transform the U.S. auto industry and reduce our country's consumption of foreign oil by introducing a battery that will improve the performance and fuel efficiency of future HEVs.

We continue 2006 with a renewed confidence. We expect to face many challenges in the race to commercialize our technologies, but do so with a resilient and dedicated team that is committed to success.

  Regards,
  Charles Gassenheimer

  About Ener1, Inc.

Ener1, Inc. (BULLETIN BOARD: ENEI) is an alternative energy technology company. The company's interests include: 80.5% of EnerDel (www.enerdel.com), a lithium battery company in which Delphi Corp. owns 19.5%; 49% of Enerstruct, a Japanese lithium battery technology company in which Ener1's strategic investor ITOCHU owns 51%; wholly owned subsidiary EnerFuel, a fuel cell products and testing services company (www.enerfuel.com); and wholly owned subsidiary NanoEner, which develops nanotechnology-based materials and manufacturing processes for batteries and other applications (www.nanoener.com). For more information, visit http://www.ener1.com/.