Ener1 Chairman Adds CEO Title

              Founder and Former CEO Becomes President and CTO



    NEW YORK, Aug. 20 /EMWNews/ -- 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.



    



    "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 - 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

               VP Corporate Communications    Waggener Edstrom Worldwide

               P: 212 920 3500*105            P: 212 907 6516

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