EnerDel Batteries will Power Hybrid, Electric Cars:

INDIANAPOLIS (Aug. 21, 2008) - Governor Mitch Daniels joined executives from lithium-ion battery developer EnerDel today to announce plans to locate the company's new global manufacturing and development operations here, a move that is expected to create more than 850 new jobs across the state through 2012.

The developer of lithium-ion batteries for hybrid, plug-in electric and electric vehicles will expand its Indianapolis research and cell production center, build and equip a battery pack assembly center in nearby Noblesville, and locate a full-scale manufacturing operation at a still to be selected location in the Hoosier state.

"Eight hundred fifty jobs of any kind is great news. When those jobs are in a technology of tomorrow, like electric cars, it offers the prospect of even bigger news to follow. Indiana has what it takes to lead this automotive revolution and today is step one," said Daniels.

Part of Ener1, Inc., (AMEX: HEV), EnerDel currently operates a 92-person production facility on the northeast side of Indianapolis and plans to begin hiring additional engineers, production associates and administrative staff later this year.

EnerDel, founded in 2004, develops lithium-ion batteries for automotive manufacturers that are lighter, occupy less space, provide more power and have a longer life than the nickel metal hydride batteries found in today's hybrid vehicles.

"Indiana is the heart of America's manufacturing might, and a linchpin in the automotive industry. There is no better place to invest in the clean, green, energy efficient technology we need to power today's global economy," said Ulrik Grape, president and chief executive officer of EnerDel. "Indiana's educated, experienced workforce is second to none, and the enthusiastic commitment we have received from Governor Daniels and other leaders is absolutely unparalleled. We couldn't be happier to call this our home."

The Indiana Economic Development Corporation offered EnerDel up to $7.125 million in performance-based tax credits and up to $58,000 in training grants based on the company's job creation plans. The cities of Indianapolis and Noblesville will consider property tax abatement at the request of the Indy Partnership. The company will also seek local incentive offers from Indiana communities for the third manufacturing location.

"There is no doubt that EnerDel is a leader in advanced manufacturing, and we are fortunate that their new global manufacturing and development operations will be located here in Marion County," said Indianapolis Mayor Greg Ballard. "They are not only bringing great jobs and investment to our county, but they are serving as a sign that Marion County is a great home for the future of manufacturing."

"We are honored and excited that a growing and innovative company like EnerDel has chosen to expand its operations to the city of Noblesville," said Noblesville Mayor John Ditslear. "What a fine testament to the talented, hard-working people of this city and the business-friendly environment our economic development team has worked so hard to create. We look forward to working with EnerDel and to potential future development with them," said Noblesville Mayor John Ditslear.

"The lithium-ion battery will revolutionize the hybrid and electric car industry and will make it a reality for the mass market in the very near term," Grape said. "EnerDel has a unique lithium-ion chemistry and advanced battery system that provides the safest and most economical energy solution for automotive applications."

EnerDel is presently the only manufacturer producing lithium-ion batteries in the U.S. for the automotive market. The company 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 partners at the Argonne National Laboratory.

EnerDel is a participant in U.S. Advanced Battery Consortium, a collaborative research effort between the U.S. Department of Energy, Chrysler, Ford and General Motors, aimed at developing hybrid and plug-in hybrid electric vehicle batteries that will enable mass production for electric drive vehicles.