EnerDel Wins U.S. Army Contract to Develop Batteries for New 'Hybrid Humvee'

Program Will Test EnerDel's High-Performance Solutions Under the Most Extreme
Conditions

INDIANAPOLIS, Nov. 5 /PRNewswire-FirstCall/ -- Automotive lithium-ion battery
maker EnerDel, Inc. announced today that it will be working with the United
States Army to develop a next-generation battery system for the hybrid version
of the iconic High Mobility Multipurpose Wheeled Vehicle (HMMWV or Humvee),
known as the XM1124 Humvee. The company, a subsidiary of Ener1, Inc. (Nasdaq:
HEV), has received a $1.29 million contract to design and build
high-performance lithium-ion battery systems for two different applications,
drawing on its expertise in multiple-chemistry solutions and ability to
provide a complete architecture in cell chemistry, electronics and battery
systems design.

"This is an opportunity to showcase the true capabilities of the EnerDel
technology in conditions that demand the highest levels of safety, performance
and reliability," said Rick Stanley, EnerDel President. "In keeping with a
long tradition, we also expect that innovations perfected here will have
important benefits for the commercial markets."

EnerDel will spend the next 18 months collaborating with the U.S. Army Tank
Automotive Research, Development and Engineering Center (TARDEC) to produce
four custom-built power systems that will be subjected to extreme performance
simulations.

TARDEC will be testing two of EnerDel's battery chemistries. In addition to
its lithium-manganese spinel chemistry, best suited for extending electric
vehicle range or electronic systems runtime, the program will also be testing
EnerDel's lithium-titanate system, an advanced chemistry developed in
collaboration with Argonne National Laboratory in Chicago, designed for
extreme high-power hybrids that require hard acceleration and braking.

While the XM1124 Humvee is already significantly more efficient than the
conventional M1113 Humvee, boasting a higher top speed, faster acceleration,
longer range and improved fuel economy, expectations are that the new,
upgraded battery packs will greatly increase the peak power capability of the
current demonstration vehicles.

In addition, the robust battery technology will also include an all-electric
"silent watch" capability which will power the electronics or traction motor
without running the truck's diesel generator, significantly reducing both the
audible and thermal signatures of the vehicle, making it easier to escape
detection by hostile parties. An EnerDel-equipped XM1124 Humvee could also
function as a portable power plant to power a mobile command post or field
hospital.

TARDEC, part of the U.S. Army Research, Development and Engineering Command
(RDECOM), is headquartered at the Detroit Arsenal in Warren, Michigan. It is
the nation's laboratory for advanced military automotive technology. TARDEC
develops and integrates technology solutions to improve the effectiveness of
the current force and realize the superior capability of the future force. Its
technical staff leads research in ground vehicle survivability, mobility,
intelligent systems and maneuver support and sustainment.

The TARDEC award further spurs Ener1's business momentum. The company has
announced active relationships with Think Global, Fisker and Volvo and has a
research program with Nissan and Argonne National Laboratory. Ener1 was
recently selected to be awarded a $118.5 million grant from the U.S.
Department of Energy under the Federal Stimulus program and is awaiting
approval of additional long-term, low-interest loan funds under the
Department's Advanced Technology Vehicle Manufacturing program. EnerDel's two
factories in Indianapolis are the first, and so far only, commercial-scale,
automotive-grade lithium-ion battery manufacturing facilities in the United
States.

About Ener1, Inc.
Ener1 develops and manufactures compact, high performance lithium-ion
batteries to power the next generation of hybrid, plug-in hybrid and pure
electric vehicles. The publicly traded company (Nasdaq: HEV) is led by an
experienced team of engineers and energy system experts at its EnerDel
subsidiary located in Indiana. In addition to the automobile market,
applications for Ener1 lithium-ion battery technology include the military,
grid storage and other growing markets. Ener1 also 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.

Safe Harbor Statement
Certain statements made in this press release constitute forward-looking
statements that are based on management's expectations, estimates, projections
and assumptions. Words such as "expects," "anticipates," "plans," "believes,"
"scheduled," "estimates" and variations of these words and similar expressions
are intended to identify forward-looking statements. Forward-looking
statements are made pursuant to the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995, as amended. These statements are not
guarantees of future performance and involve certain risks and uncertainties,
which are difficult to predict. Therefore, actual future results and trends
may differ materially from what is forecast in forward-looking statements due
to a variety of factors. All forward-looking statements speak only as of the
date of this press release and the company does not undertake any obligation
to update or publicly release any revisions to forward-looking statements to
reflect events, circumstances or changes in expectations after the date of
this press release.

MEDIA RELATIONS
Jon Coifman
Waggener Edstrom Worldwide
Phone: 212 551 4815
Email: jcoifman@waggeneredstrom.com

INVESTOR RELATIONS
Rachel Carroll
ENER1, Inc.
Phone: 212 920 3500
Email: rcarroll@ener1.com

SOURCE Ener1, Inc.

MEDIA RELATIONS, Jon Coifman, Waggener Edstrom Worldwide, +1-212-551-4815,
jcoifman@waggeneredstrom.com; or INVESTOR RELATIONS, Rachel Carroll, ENER1,
Inc., +1-212 920 3500, rcarroll@ener1.com