Ener1 Chairman Adds CEO Title

Founder and Former CEO Becomes President and CTO

NEW YORK, Aug. 20 -- Charles Gassenheimer, Chairman of lithium-ion automotive battery manufacturer Ener1, Inc. (AMEX:HEV) , today assumed the role of Chief Executive Officer. Company founder and former CEO Dr. Peter Novak moved into the new position of Chief Technology Officer and President. Dr. Novak will oversee the further development of Ener1 subsidiaries, NanoEner and EnerFuel, while continuing to provide technical leadership for Ener1's advanced automotive battery division, EnerDel.

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"I am pleased to hand over the chief executive title to Charles, who has steadily proven his ability to lead this company to fulfill its potential as a world industry leader," Dr. Novak said. "The market opportunity has grown tremendously in business scale and complexity over the years and we are now prepared to take full advantage of it."

"As Ener1 chairman since 2006, I've had the privilege of facilitating the company's emergence as a bona fide manufacturing enterprise poised to gain a dominant position in an industry that will have a major impact on society globally," Mr. Gassenheimer said. "It is clear that energy storage will be crucial in solving the world's energy problems. The lithium-ion battery will almost certainly play a central role in the first, and possibly most significant, hurdle to achieving that goal: the electrification of the automobile industry."

In addition to Ener1's battery operations, its wholly-owned subsidiary, NanoEner, creates highly specialized vapor deposition coating technology crucial for safe, cost-effective production of lithium-ion batteries and other advanced energy storage devices. Another wholly-owned subsidiary, EnerFuel, provides manufacturers and other developers of high-temperature fuel cells with engineering and testing services.

"Fuel cells and nanotechnology are crucial components in the later stages of electrification of the automotive industry," Dr. Novak said. "By combining different alternative energy strategies, Ener1 is pioneering the next generation of automotive power sources."

The company also announced the addition of Mark D'Anastasio to its Board of Directors. Mr. D'Anastasio, president of Washington, D.C.-based Emerging Markets Communications LLC, brings to the Ener1 board twenty years of experience in strategic communications for global leaders in business, including five years as Chairman of the International Development Practice for Burson-Marsteller.

About Ener1, Inc.:

Ener1 develops and manufactures compact, high performance lithium-ion batteries to power the next generation of hybrid and electric vehicles. The publicly traded company (AMEX:HEV) (AMEX:-) (AMEX:News) is led by an experienced team of engineers and energy system experts at its EnerDel subsidiary located in Indianapolis, which is building proprietary battery systems based on technology originally pioneered with the assistance of the Argonne National Lab.

Ener1 is seeking to become the first company to mass-produce a cost-competitive lithium-ion battery for hybrid and electric vehicles. Demand for battery solutions is being driven by a need to reduce dependence on oil as well as growing concern about vehicle emissions. In addition to the automobile market, applications for Ener1 lithium-ion battery technology include medical, military, aerospace, electric utility and other growing markets.

EnerDel recently received the prestigious R&D 100 award for excellence in its technology and uniquely innovative design. The award is shared by EnerDel and its research partners at Argonne National Laboratory. EnerDel is an active member of the United States Advanced Battery Consortium, which works closely with automakers, component companies and others to accelerate the commercial development of new battery technology.

Major shareholders of Ener1 include Ener1 Group, Inc., a privately held, global investment and advisory firm, and ITOCHU Corporation, a Japanese trading company and distributor of manufacturing equipment essential to lithium-ion battery production. ITOCHU has annual revenue of approximately $90 billion and offices in more than 80 countries. Ener1 has also received funding from a growing number of institutional investors.

In addition to battery technology, Ener1 develops commercial fuel cell products through its EnerFuel subsidiary and nanotechnology-based materials and manufacturing processes for batteries and other applications through its NanoEner subsidiary.

  Contacts:  INVESTOR RELATIONS:            MEDIA RELATIONS
             Rachel Carroll                 Jon Coifman
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