FT. LAUDERDALE, Fla., May 12 /PRNewswire-FirstCall/ -- Ener1, Inc. (Amex: HEV), an energy storage solutions company, today reported first-quarter 2008 financial results.

(Logo: http://www.newscom.com/cgi-bin/prnh/20080312/CLW018LOGO )

Highlights from Q1 financial and operational results including significant events that occurred after the end of the quarter:

    -- We began trading on the American Stock Exchange under trading symbol
       "HEV" on May 8
    -- We continued to meet our delivery milestones for Think and recently
       delivered three functional electric vehicle lithium-ion battery
       prototypes to Think under the supply agreement on April 30.  This
       equates to $575,000 in revenues
    -- All convertible debt and preferred stock has been converted as of March
       31.  Company is now debt-free
    -- Positive shareholders equity of $12 million
    -- Strong liquidity of $19.1 million, of which cash was  $13.6 million at
       March 31.  Deposits for equipment was $5.5 million, which we plan to
       replace with equipment lease financing.  Finally, an additional $6.5
       million of cash has already been received in April and May from early
       warrant exercises, the remainder of the $43 million of cash is expected
       to be received by May 19 as long as the warrants remain in the money
    -- Public float increased to 34%
    -- Increase in average daily trading volume
    -- $8 million in equipment orders placed to ready for production of
       electric vehicle batteries for the Think City EV

"The year's first quarter was characterized by full execution on our financial and operational goals in our advanced automotive battery subsidiary and throughout the company," said Ener1 Chairman Charles Gassenheimer. "We set aggressive targets for 2008, including resetting our balance sheet and executing on key business relationships, culminating in the completion of Ener1's listing on the Amex. Listing on a major stock exchange is a landmark event for Ener1, as we complete our transition from an R&D to a products and solutions company in the rapidly evolving business of energy storage. We also delivered working prototypes of batteries for the Think City vehicle, which is another fulfilled milestone for our engineering team. We look forward to displaying a Think battery pack at the Advanced Automotive Battery Conference this week in Tampa, Florida."

Management will host a conference call this morning at 10:00a.m. Eastern Standard Time to discuss these results & Ener1's strategic outlook for 2008. To participate in the conference call, please dial (888) 713-4215 from within the United States, or (617) 213-4867 from outside the United States. The participant pass code is 32064303. A recording of the call will be available until May 19, 2008. To access the recording, please dial (888) 286-8010 from within the United States, or (617) 801-6888 from outside the United States. The participant pass code is 96410734.

About Ener1, Inc.

Ener1, Inc. (Amex: HEV) is an energy storage solutions company that is developing and commercializing advanced, high-performance safe lithium-ion (Li-ion) batteries for hybrid electric vehicles (HEVs), plug-in HEVs (PHEVs) and electric vehicles (EVs). Ener1 is also developing commercial fuel cell products through its EnerFuel subsidiary and nanotechnology-based materials and manufacturing processes for batteries and other applications through its NanoEner subsidiary. For more information, visit http://www.ener1.com and http://www.enerdel.com or call (212) 920-3500.

    Contact:
    Rachel Carroll
    VP Corporate Communications
    P: 212 920 3500*105
    E: rcarroll@ener1.com



                                 ENER1, INC.
                    CONDENSED CONSOLIDATED BALANCE SHEETS
                                 (Unaudited)
                            (Dollars in thousands)

                                                     March 31,   December 31,
                                                       2008           2007

    ASSETS
    Current assets
    Cash                                            $ 13,620       $ 24,826
    Accounts receivable                                1,106            102
    Other current assets                                 578            702
        Total current assets                          15,304         25,630

    Property and equipment, net                        4,482          4,287
    Equipment deposits and restricted cash             5,519              -
    Other assets                                         711          1,384
        Total assets                                $ 26,016       $ 31,301

    LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
    Current liabilities
    Accounts payable and accrued expenses              4,369          3,798
    Derivative liabilities                                 -         10,144
    Other current liabilities                             85            315
        Total current liabilities                      4,454         14,257

    Convertible notes, advances and accrued
     interest due to related party, net of
     discounts of $0 and $5,250, respectively              -          8,315
    2004 senior convertible debentures, net of
     discount of $0 and $3,597, respectively               -          6,037
    2005 senior convertible debentures, net of
     discount of $0 and $940, respectively                 -          1,141
        Total liabilities                              4,454         29,750

    EnerDel, Inc. Series A Redeemable
     Preferred Stock, 8,000 shares issued and
     outstanding; liquidation preference $8,000        9,157          8,577

    STOCKHOLDERS' EQUITY (DEFICIT)                    12,405         (7,026)
        Total liabilities and stockholders'
         equity (deficit)                           $ 26,016       $ 31,301

The shares of common stock authorized and issued and outstanding as of March 31, 2008 and December 31, 2007 have been adjusted to reflect a 1 for 7 reverse stock split effective April 24, 2008.

                                 ENER1, INC.
               CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                                 (Unaudited)
                     (In thousands except per share data)

                                                  Three Months Ended March 31,
                                                       2008           2007

    Net sales                                           $ 97           $ 39

    Operating expenses
    General and administrative                         2,582          1,884
    Research and development, net                      3,065          2,456
    Depreciation and amortization                        107            110
        Total operating expenses                       5,754          4,450
        Loss from operations                          (5,657)        (4,411)

    Other income (expense):
    Interest expense                                 (11,625)        (3,352)
    Gain on derivative liabilities                     3,936            579
    Other, net                                           198            (75)
        Total other expense                           (7,491)        (2,848)

    Loss before income taxes                         (13,148)        (7,259)
    Minority interest                                   (580)          (458)
    Net loss                                         (13,728)        (7,717)
    Preferred stock dividends                              -           (516)
    Net loss attributable to common shareholders   $ (13,728)      $ (8,233)

    Net loss per share: basic and diluted            $ (0.15)       $ (0.13)

    Weighted average shares outstanding:
     basic and diluted                                93,369         62,728

Share and per share data for the three months ended March 31, 2008 and 2007 have been adjusted to reflect a 1 for 7 reverse stock split effective April 24, 2008.

SOURCE Ener1, Inc.