AC Transit Selects EnerDel to Supply Batteries for Next-Generation Fuel Cell Buses

AC Transit Selects EnerDel to Supply Batteries for Next-Generation Fuel Cell
Buses

NEW YORK, May 27 /PRNewswire-FirstCall/ -- The Alameda-Contra Costa Transit
District (AC Transit) today announced the signing of a contract with EnerDel,
Ener1, Inc.'s (Nasdaq: HEV) lithium-ion battery subsidiary, to produce
batteries for one of the most advanced urban transit buses in the world. AC
Transit has placed orders for 16 new, next-generation, hybrid-electric fuel
cell buses, to replace the three older model fuel cell buses it has been
operating since 2006. The new vehicles will use highly advanced battery
systems developed by Indiana-based EnerDel Lithium Power Systems, the first
company to produce automotive grade lithium-ion batteries on a commercial
scale in the United States.

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The battery system is an integral part of the zero-emission fuel cell bus,
capturing energy from regenerative braking and improving fuel economy and
efficiency. Twelve of the buses, which are currently in production, will be
the backbone of AC Transit's fuel cell fleet and are to be used by a
consortium of Bay Area transit operators in the California Air Resources
Board's only Advanced Zero-Emission Bus Demonstration program. The other four
buses are being purchased by UTC Power and will be operated by various transit
agencies under the Federal Transit Administration's National Fuel Cell Bus
Program.

"Onboard energy storage is a critical component of our hybrid-electric fuel
cell buses, and finding the correct battery system to work hand-in-hand with
our fuel cell system is essential to the overall success of these highly
advanced vehicles," said Rick Fernandez, General Manager of AC Transit.
"EnerDel offered us the best solution to address reliability and performance
standards in the demanding and difficult operating environment of heavy-duty
transit operations."

Since 2000, AC Transit has been developing what has become one of the most
comprehensive hydrogen fuel cell demonstration programs in the world. The 16
new buses will demonstrate that lithium-ion battery systems can be scaled up
for use in heavy-duty applications. In addition to EnerDel, the new buses are
being designed collaboratively by AC Transit, Van Hool (the bus manufacturer
and integrator), and UTC Power, a United Technologies Corp. (NYSE: UTX)
company (the fuel cell system provider). Hydrogen tanks on the roof of the
bus will provide a range of approximately 300 miles.

"We are honored that the design team selected EnerDel for this program, and
are excited to be working with them on this project," said EnerDel CEO Ulrik
Grape. "We have successfully leveraged the extensive work EnerDel has
developed and delivered for other applications, while tailoring and adding
additional features to this system for heavy-duty bus usage. The technologies
being used in these buses will eventually find their way into all kinds of
vehicles, including the one in your driveway."

Fuel cell buses are clean, ultra-quiet vehicles that only emit water vapor
from the tailpipe. AC Transit began building its zero-emission bus program in
2000. The first three, full-service, fuel cell buses began operating in
regular service in early 2006, and have now logged more than 165,000 miles of
service, carrying in excess of 400,000 passengers. AC Transit is also the lead
agency in a coalition of Bay Area transit operators working together to
demonstrate the viability of zero-emission buses to the region and the transit
industry. As part of this effort, AC Transit is expecting to receive delivery
of its 12 next-generation fuel cell buses before June 2010.

About AC Transit
AC Transit is one of the largest transit agencies in California, serving over
67 million passengers a year throughout a 360-square mile region in the East
Bay of the San Francisco Bay Area. For 49 years, AC Transit has been
recognized as a national leader in the transit industry. The Environmental and
Energy Study Institute of Washington, D.C., named AC Transit a "National Clean
Bus Leader" for its advanced environmental technology initiatives. In 2006, AC
Transit was recognized by the San Francisco Bay Area's Metropolitan
Transportation Commission with an award of excellence, for its pioneering work
in the development of zero-emission technology and its leadership role in
advancing the cause of environmentally sound programs for the public transport
industry. More information about AC Transit is available at
www.actransit.org/environment/.

About EnerDel, Inc.
EnerDel develops and manufactures compact, high performance lithium-ion
batteries to power the next generation of hybrid and electric vehicles. It is
a subsidiary of Ener1, Inc. (Nasdaq: HEV). The company is led by an
experienced team of engineers and energy system experts based in Indiana.
EnerDel has developed proprietary battery systems based on technology
originally pioneered with the assistance of the Argonne National Lab.

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: Jaimie Levin Rachel Carroll
AC Transit Ener1, Inc.
P: (510) 851-0625 P: (212) 920-3500
JLevin@actransit.org rcarroll@ener1.com

SOURCE Ener1, Inc.

Jaimie Levin of AC Transit, +1-510-851-0625, JLevin@actransit.org; or Rachel
Carroll of Ener1, Inc., +1-212-920-3500, rcarroll@ener1.com