FT. LAUDERDALE, Fla., Feb. 14 /PRNewswire-FirstCall/ -- Ener1, Inc. (BULLETIN BOARD: ENEI) announced today that its NanoEner, Inc. subsidiary has established and equipped a pilot nanotechnology-based manufacturing facility to fabricate electrodes for high discharge rate, lithium-ion batteries. The company's battery subsidiary, EnerDel, Inc., in which Delphi Corporation holds a 19.5% interest, is in discussions with automotive OEMs regarding evaluation of samples for use in hybrid electric vehicles where the high discharge rate characteristic is viewed as key to performance and cost. EnerDel also plans to explore applications of this technology in other markets.

The company's new nanotechnology based manufacturing process can be used to produce electrodes (anode and cathode) with substantially more power output and higher discharge rates (both key factors in meeting the higher performance requirements for lithium-ion batteries for hybrids and other applications), as well as much faster recharging times. The company believes that its proprietary nanotechnology process for producing electrodes, which is based on its proprietary vapor deposition process and equipment, represents a major innovation in battery technology that could greatly improve performance in many existing and emerging battery-powered applications.

"The automotive industry (and many other industries as well) are looking for a high-power battery solution that will enable their next generation products to become a reality at a cost that is commercially viable," said Pankaj Dhingra, who, as earlier announced, joined Ener1, Inc. in December as its Energy Group President, coming from Delphi Corporation where he oversaw their Energy Systems Group. "I believe the performance advantages and efficiencies offered by our nanotechnology provide that solution, and our new pilot facility is a big step in that direction."

The Company's new facility has three beta-phase apparatus stations with specially designed software-based controls for continuous fine-tuning and monitoring of all aspects of the vapor deposition-based, nanoproduction process, which allows maintenance of desired electrode structures to the nano level. All of the proprietary production equipment and related-nanotechnology processes used in the facility were designed by the company's scientists and engineers.

Utilizing improved processes for deposition of thin films to form the electrodes, the company's nanotechnology-based production process employs the vapor deposition technique to precisely and efficiently deposit electrode materials with the electrode structures needed for extremely high discharge rates. The results are more power and a high rate of discharge -key requirements not only for hybrid batteries, but also for other applications that require quick bursts of power. The company's new electrode production system also allows for the use of low cost raw materials and eliminates the need for undesirable additives such as binders and solvents that can slow a battery's rate of power output. The company believes these advantages will make its nanotechnology-based production process far superior to existing electrode manufacturing processes as well as highly competitive with other nano-related methods to produce high-powered electrodes.

Ener1 has been working on its nanotechnology and nanoproduction processes for many years and also has collaborated with Enerstruct Inc., the joint venture company that Ener1 owns with ITOCHU Corporation, a multi-billion dollar Japanese industrial company that has invested several million dollars in Ener1. Further support for the company's technology has come from results of an independent test performed at a major Japanese university last year, which indicated that electrodes produced with the company's nanotechnology are capable of discharge rates many times higher than current lithium ion batteries. Those results were published in a leading Japanese electronics journal, Nikkei Electronics, as described more fully in a previous press release by the company.

Kevin Fitzgerald, Ener1's Chairman and CEO, added "We have seen very promising results in electrodes produced using our prototype equipment and expect them to further improve. The pilot facility brings us much closer to the commercialization of our nanotechnology in lithium batteries. It will also enable us to explore other market opportunities in our areas of interest, such as fuel cells, super capacitors and even electronic wires, all of which will benefit from the high discharge rates and other performance and cost advantages of our nanotechnology."

About Ener1, Inc.

Ener1, Inc. (BULLETIN BOARD: ENEI) develops and markets new technologies and products for clean, efficient energy sources. Ener1 markets lithium batteries and battery packs through EnerDel, its majority-owned venture with Delphi Corp. Ener1 also develops and markets nanotechnology-based materials and manufacturing processes and components through its NanoEner, Inc. subsidiary. Ener1 develops selected fuel cell components and provides fuel cell related testing services through its EnerFuel, Inc. subsidiary. Ener1's products have applications for markets that include power tools and industrial equipment, medical devices, hybrid vehicle propulsion and military communications. For more information on Ener1's products, please visit its Web site at http://www.ener1.com/ or call (954) 556-4020.

CONTACT: Alys Daly of Ener1 Inc., +1-954-556-4020

Web site: http://www.ener1.com/