Electrovaya Joins Forces With Malcolm Bricklin's Visionary Vehicles on Plug-In Hybrid Electric Vehicles

TORONTO, ONTARIO, Jan 14 (MARKET WIRE) --
Electrovaya (TSX: EFL) announced today that it has signed a non-binding
Memorandum of Understanding (MOU) with New York based Visionary Vehicles
(VV) to produce batteries for VV's full line of plug-in hybrid vehicles
(PHEVs). The agreement will result in a Joint Venture to develop,
manufacture and provide Electrovaya's Lithium-Ion SuperPolymer(R)
batteries and intelligent battery management systems to Visionary
Vehicles for use in its PHEVs.

"We have been reviewing battery manufacturers from the United States,
Europe and Asia for 14 months," said Visionary Vehicles Founder, Chairman
and CEO Malcolm Bricklin. "We are thrilled to have found Electrovaya and
we are excited to enter into a long-term strategic partnership with them.
This is a complex new terrain and the methodology and science that
Electrovaya has developed stands apart from others."

Dr. Sankar DasGupta, CEO of Electrovaya said, "Electrovaya looks forward
to working with Malcolm and Visionary Vehicles to commercialize of
plug-in hybrids with advanced battery and motor technologies. Together we
plan to make low emission transportation affordable and widely available."

The MOU provides for the creation of a Joint Venture that will establish
a stand-alone Company, to be owned by both firms equally, to develop and
manufacture batteries and battery management systems. All capacity from
the resulting new organization will be dedicated exclusively to Visionary
Vehicle's electric vehicles. The new organization will also dedicate a
significant amount of its proceeds to research and development.

As part of the licensing agreement, the MOU provides for Electrovaya to
receive royalties and license fees in addition to a 50% ownership in the
joint venture with VV, as well as an option to participate in VV's share
structure. The MOU also provides VV with an option to purchase a small
portion of Electrovaya's outstanding shares.

The Electrovaya battery is a core component of VV's vehicle strategy and
will enable Visionary to bring its vehicles superior energy density,
cycle life, service life, and shelf-life in a safe environment.

"Our proprietary SuperPolymer(R) battery technology and intelligent
battery management system (iBMS) enables longer run-times in a smaller
space for portable computers, wireless devices, electric vehicles and
many alternative energy and mobile power applications," said DasGupta.
"Our innovations and technologies are a "platform", whereby continued
nanotech R&D with Visionary will enable a future of ongoing refinements
without fear of being a transitory technology. We look forward to the
high-volume production clean transportation future with great leaders
like Visionary."

"Through this innovative partnership, we will be able to create new
economy scale for our batteries, a barrier that we had to overcome to
meet our target MSRP," continued Bricklin, "Our goal is not just to start
Visionary Vehicles, it is to compel this new sector industry forward by
opening our component strategy and pricing to new entrants."

About Visionary Vehicles

Visionary Vehicles, Inc. was created to design and distribute plug-in
hybrid electric vehicles ("PHEVs") in North America and other world
market currently not available to the general public. Its vehicles will
be designed and engineered to meet or exceed the exacting standards of
luxury, performance, quality and safety set by the leading German and
Japanese luxury automakers. Visionary Vehicles is working to address the
growing and substantial unmet consumer demand for alternative fuel
vehicles as a result of growing awareness and concern regarding
environmental issues, including the impact of carbon emissions on global
warming and the desire for energy independence to promote national
security. Visionary Vehicles believes that this demand conservatively
translates into a potential market of approximately 2.5 million U.S.
consumers in the near-term. The Company was founded by Malcolm Bricklin,
the automotive innovator who also founded Subaru of America. Mr. Bricklin
currently serves as Chairman and CEO of Visionary. For further
information about Visionary Vehicles go to www.vvcars.com.

About Electrovaya

Electrovaya is a developer and manufacturer of portable power solutions
with its propriety Lithium Ion SuperPolymer battery and systems
technology. Its goal is to become the preferred provider of clean energy
solutions, portable power systems and Lithium Ion Superpolymer batteries.
System solutions for mobile applications include: zero emission vehicles,
plug-in electric hybrid vehicles, mobile computing (Tablet PCs), solar
energy storage, UPS and stand-by power. The company's shares trade on the
Toronto Stock Exchange under the symbol EFL. For further information
about Electrovaya, see www.electrovaya.com.

Forward-Looking Statements

This news release may contain forward-looking statements that involve a
number of risks and uncertainties, including statements regarding the
outlook for the Company's business and results of operations. Risks are
outlined in the Company's MD&A for the year ending September 30, 2007 and
are set forth in public disclosure documents filed with Canadian
regulatory authorities. By nature, these risks and uncertainties could
cause actual results to differ materially from those indicated. The
Company disclaims any intention or obligation to update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise.

Contacts:
Electrovaya Inc.
P.L. Hart
Chief Financial Officer
(905) 855-4636
Email: plhart@electrovaya.com
Website: www.electrovaya.com

Copyright 2008, Market Wire, All rights reserved.

-0-