Ener1 Chairman's Letter to Shareholders

FORT LAUDERDALE, Fla.--Sept. 14, 2006--Ener1, Inc. (OTCBB: ENEI) Chairman Charles Gassenheimer today issued the following letter to shareholders and the investment community.

Dear Shareholder,

We are pleased to inform you regarding the company's strides in
commercializing its technologies.

Our battery company EnerDel has signed a contract with the U.S.
Advanced Battery Consortium (USABC). The contract validates the path
we are taking to mass produce superior performing lithium ion (Li-Ion)
batteries in the U.S. at a superior value. We believe our batteries
will greatly improve the fuel efficiency of future hybrid vehicles,
helping to reinvent the U.S. auto industry and curtail our country's
dependence on foreign oil.

This Phase 1 contract with the USABC is a concrete step in a
proposed three phase plan that will provide revenue of scale. The
USABC is a part of the United States Council for Automotive Research,
an organization comprised of DaimlerChrysler, Ford and General Motors,
in collaboration with the Department of Energy. EnerDel is now mid-way
through phase one, and upon its successful completion, the company
will pursue a Phase 2 contract with the USABC.

EnerDel recently installed its first phase electrode mass
production line, which can yield the equivalent of 5,000 hybrid
batteries per month, at its Indiana facility. This line demonstrates
our production capabilities to the USABC and is an important step
forward in our launch plans to mass manufacture our Li-Ion technology
for automotive applications. It also enables EnerDel to produce
battery samples for potential automotive customers and begin
qualifying as a North American supplier of Li-Ion hybrid vehicle
batteries.

Ener1's fuel cell company is delivering innovative products to the
marketplace. This summer, as promised, EnerFuel introduced a series of
fuel cell humidifiers for PEM fuel cell systems. Customers for this
product include leading fuel cell system manufacturers, such as
IdaTech, Hydrogenics and Cellex - inspiring confidence for the
company's capabilities throughout the fuel cell industry. As part of a
focused, staged commercialization plan, EnerFuel is developing several
technologies and expects to release its next product in approximately
nine months. The company's project to power an interstate rest stop in
Florida with a fuel cell that runs on methanol derived from citrus
waste is also progressing. The rest stop will serve as a demonstration
site for our technology and educate commuters about the energy
efficient benefits of fuel cells. We are working closely with state
officials and will unveil the location of the rest stop shortly.

Ener1 has embarked on a campaign to increase awareness for our
company's progress with the investment community. The Company's
historical SEC issues are resolved, its financials restated and
registration statements are updated. In the past three months, we
participated in the RedChip Small Cap Investor Conference, Merriman,
Curhan Ford & Co.'s Next Generation Energy Conference and Equities
Magazine Investment Conference. Later this month we are scheduled to
present at Merriman's Investor Summit 2006 in San Francisco and
Equities Magazine Transatlantic Corporate Conference at the American
Stock Exchange in New York. We will post these upcoming presentations
on our website (www.ener1.com). Ener1 was profiled in Equities
Magazine and featured in the Indiana Business Journal. These articles
can also be found on our website.

I am pleased with our management team's steadfast commitment to
our business plan. We are focused on our commercialization activities.

Regards,

Charles Gassenheimer
Chairman

About Ener1, Inc.

Ener1, Inc. (OTC Bulletin Board: ENEI) is an alternative energy technology company. The company's interests include: EnerDel (www.enerdel.com), a lithium battery company in which Delphi Corp. owns a minority share; Enerstruct, a Japanese lithium battery technology company in which Ener1's strategic investor ITOCHU owns the majority share; 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 or call 954-556-4020.

Safe Harbor Statement

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 involve risks and uncertainties, including, but not necessarily limited to: Ener1's ability to succeed as a supplier of batteries to the hybrid electric vehicle and other markets; Ener1's plans to reduce costs and gain a competitive advantage by consolidating manufacturing operations and implementing automated production processes; charges Ener1 will incur in connection with consolidating manufacturing operations; EnerFuel's ability to develop and sell products and services in its planned markets; the degree of competition in the markets for lithium battery, fuel cell and nanotechnology-based products and services, Ener1's history of operating losses, the lack of operating history for the development stage Ener1 businesses, the need for additional capital, the dependency upon key personnel and other risks detailed in Ener1's 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.