Electrovaya Enters the Stationary Power & Smart Grid Energy Storage Market in Japan

TORONTO, ONTARIO, Nov 02 (MARKET WIRE) --
Electrovaya Inc. (TSX: EFL) today announced that it plans to enter the
stationary power and smart grid energy storage market in Japan.

Nippon Kouatsu Electric Co. Ltd. (NKE) and Electrovaya have signed a
memorandum of understanding (MOU) for the development and sales of
Electrovaya's integrated advanced battery storage systems for both
stationary power and smart grid systems applications, initially targeted
for the Japanese market.

Globally, there is an unmet need to capture and store grid electricity
for later use. As more renewable energy generation technologies such as
solar and wind are implemented, they add a greater amount of intermittent
and variable load to the electric grid capacity. This, coupled with
standard demand challenges, has created wide daily price variations with
overnight and "off-peak" electricity prices being significantly less
expensive than in high demand periods. In Japan, this electricity price
differential is sufficiently large enough to create an excellent market
for technology solutions that allow consumers to capture off-peak,
low-price electricity and store it for peak demand periods.

"The emerging need for grid energy storage solutions is a worldwide
phenomena, but most acute in Japan," says Mr. Motokuni Takaoka, President
of NKE. "To-date various storage battery technologies and kinetic storage
techniques, such as pumped hydro and compressed air energy storage have
been investigated. These technologies are less than ideal with expensive
set-up, ongoing operating costs and a large physical and environmental
footprint. We are very excited to partner with Electrovaya to develop and
distribute an integrated solution that is smaller, has lower capital
cost, negligible operating cost, and a zero-emission production process.
After initial success in the Japanese market, we plan to extend our
distribution to additional fast growing markets."

Dr. Sankar DasGupta, CEO of Electrovaya adds, "The application of our
Lithium Ion SuperPolymer(R) battery technology and system solutions to
the smart grid and stationary market in Japan is a very exciting
development. These emerging markets are complementary and interconnected.
The applications we will address with NKE perfectly complement the
capabilities of Electrovaya's electric vehicle division."

"The emerging stationary, smart-grid and electric vehicle (battery and
plug-in hybrid) markets require large battery systems that are high
performance and cost-effective. This is where Electrovaya's proprietary
battery technology advantages are most evident and are a natural
technology market fit," added Dr. DasGupta. "Our Lithium Ion
SuperPolymer(R) battery technology is distinguished by two critical
features: 1) superior energy density results in smaller and lighter
battery systems, and 2) our large-format prismatic cell design enables
large-system scale up. These two features together enable custom energy
storage solutions that overcome the standard challenges of packaging,
performance and volume cost," continued Dr. DasGupta.

"Electrovaya is delighted to collaborate with NKE, as it has strong
relationships and experience in the Japanese utility, electric power and
generation markets. NKE's successful track record of launching new
products and technologies to these markets will be particularly valuable
in introducing Electrovaya's advanced solutions to these fast-growing
emerging markets," concludes Dr. DasGupta.

About Electrovaya:

Electrovaya (TSX: EFL) is a developer and manufacturer of its proprietary
Lithium Ion SuperPolymer(R) battery systems. Electrovaya's mission is to
accelerate clean transportation as a commercial reality with its advanced
power systems for all classes of zero-emission electric vehicles and
plug-in hybrid electric vehicles. Further, it is focused on other
large-format emerging markets such as stationary power. It also offers
battery-related consumer products primarily for the healthcare market.
For more information about the Company and its products, please visit our
website at www.electrovaya.com.

About Nippon Kouatsu Electric (NKE):

NKE is a leading manufacturer of power distribution equipment. The
company enjoys a significant market share in Japan and has been focused
on the development of new products that meet a variety of needs of
electric power companies and railway companies throughout Japan ever
since its inception in 1956. As today's energy market is evolving quickly
with energy sources seeing diversification, NKE's R&D team is proactively
dedicating themselves to keep up with the times and with these changes.
NKE has manufacturing plants in Japan, China and Vietnam with clients
being major utilities and electric power companies. NKE also partners
with major electrical equipment companies such as GE and continues
efforts to meet demands of the electric power companies.

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 period ending June 30, 2009 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 Corp.
Paul L. Hart
Chief Financial Officer
(905) 855-4636
Email: plhart@electrovaya.com
Website: www.electrovaya.com

The Blueshirt Group
Suzanne Craig
Investor Relations
(415) 217-4962
Email: suzanne@blueshirtgroup.com

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