Ener1 Reports Fourth Quarter and Year-End 2008 Results

New York, March 12, 2009: Ener1, Inc., developer and manufacturer of advanced lithium-ion batteries to power the next generation of hybrid, plug-in hybrid and pure electric vehicles, today reported its 2008 fourth quarter and year-end financial results. The following highlights significant events that occurred since the end of the third quarter:

Customer programs

  --  Customer interest in our lithium-ion batteries from all segments
      remains strong in spite of distress in the auto industry and current
      recessionary economic conditions.
  --  Strategically, we evaluated the market and our potential for expansion
      under Federal stimulus funding (see below).  We have segmented our
      accounts into a focus list of ten high-priority customers.  These
      accounts represent a near term revenue opportunity or are of strategic
      importance to the firm.  We believe 50% of the focus list customers
      could generate revenue during 2009.  Accounts where potential for
      follow-on orders exist or development contracts that represent a
      future prospect or the opportunity to capture life time performance
      data are included.
  --  In addition to final testing for the Th!nk City EV, we would like to
      highlight the following:
      --  In-vehicle testing in four different vehicle programs
      --  EV battery pack program for a demonstration vehicle for a tier-one
          supplier in Europe
      --  Large-format cell development program for a tier-one supplier in
          Europe
      --  PHEV battery pack testing program with a European automotive
          company and electric utility
      --  EV conversion program with specialty vehicles
      --  EV conversion program for a national postal service
      --  Development of a fast-charging system with Kyushu Electric Power
      --  Early design concept development program with a European
          automotive company.
  --  Overall, Ener1's 92,000-square-foot facility in Indianapolis has
      current capacity to produce 300 million watt hours of electrodes; an
      additional $50 million spent on equipment would double capacity to 600
      million watt hours of electrodes for battery pack and cell production
      capacity of $450 million value in sales.

  Government Financing Initiatives
  --  Ener1 applied for $480 million in 10-year financing under the
      Department of Energy's (DOE) Advanced Technology Vehicle Manufacturing
      Incentive Program (ATVMIP), a direct loan program to finance current
      production expansion and build an additional manufacturing facility in
      the United States.
  --  Ener1's application was deemed to be substantially complete on January
      22, 2009 and is undergoing technical and financial review.
  --  In addition, a Notice of Intent (NOI) was issued by the DOE on
      February 18, 2009 to provide grants based on $2 billion in stimulus
      funding under the Advanced Battery Manufacturing Initiative (ABMI), a
      cost share grant program for the manufacture of advanced battery
      systems in the United States.

  Financial Highlights:
  --  Ener1 year-end results include operations at Enertech International
      for November and December.
  --  Revenues for 2008 were $6.8 million compared to $280 thousand in 2007.
      Revenues and gross profit at Enertech for the two months were $5.0
      million and $1.0 million respectively.  Fourth quarter 2008 revenues
      were $6.3 million.
  --  Operating expenses were $36 million in 2008 compared to $21 million in
      2007 as Ener1 increased research and development expenditures for
      customer and government projects.
      --  Research and development expenses were $23 million.
      --  General and administrative expenses were $11.6 million in 2008.
  --  Net loss per share was $.42 in 2008 compared to $.85 in 2007
  --  Weighted shares outstanding were 103.3 million in 2008 compared to
      72.9 million in the prior year
  --  Shareholder's equity now stands at $103 million compared to negative
      $7 million at December 31, 2007.
  --  Ener1 total assets are $142 million compared to $31 million in 2007.

  - Investment:
  --  Ener1 purchased $21.3 million of equipment during 2008, of which $7.2
      million was financed through capital leases.  At year-end, Ener1 had
      remaining CAPEX commitments under the expansion program of $6.4
      million.

  - Liquidity:
  --  Cash at year end was $14 million
  --  Ener1 has a $30 million loan facility with Ener1 Group to finance
      operations during 2009
  --  Enertech has bank loan availability of which $9 million was available
      at year-end
  --  Cash used by operations was $24.5 million in 2008 compared to $26.7
      million in 2007

"2008 was an important year for Ener1 on a number of levels," commented Chairman and CEO Charles Gassenheimer. "We built the foundation for tremendous growth during a challenging year. Our investment in capacity has led to our customer traction tripling in the last 5 months. We believe that we have all of the pieces to fully execute on our plan and look forward to a challenging, but rewarding 2009."

Management will host a conference call this afternoon at 5:00 p.m. EST to discuss the fourth quarter results and give guidance on the company's financial position and discuss important company announcements. The accompanying management presentation will be Webcast live with the audio call, and may be viewed on the Ener1 website at ENER1. To participate in the audio call, please dial (888) 713 4205 from within the United States, or (617) 213 4862 from outside the United States. The participant pass code is 68442120.