Ener1 Buys Out Delphi to Take 100% Ownership in EnerDel

13 August 2008

Ener1, Inc. has acquired exclusive ownership of EnerDel, including essential manufacturing and intellectual property assets from former joint venture partner Delphi Automotive Systems LLC. The agreement was approved by the Honorable Judge Drain, who is overseeing Delphi’s efforts to emerge from bankruptcy.

In effecting the transaction, Delphi transferred to Ener1 the entirety of its 19.5% equity interest in EnerDel, including its EnerDel Series A Preferred Stock. In exchange, Ener1 transferred to Delphi 2,857,143 million shares of Ener1 Restricted Common Stock and $8 million in cash, and will revise the exercise price for certain outstanding warrants to $5.25. The warrants are exercisable into 750,000 shares of Ener1 Common Stock and were originally issued to Delphi in October 2004, as part of the original JV formation.

The agreement gives Ener1 sole ownership of crucial assets at an important time in this rapidly growing industry. It gives us more freedom and greater opportunity to bring innovations to market faster and at lower cost. The transition also paves the way for new strategic partnerships, something we have long said is a key competitive objective.

—Charles Gassenheimer, Ener1 Chairman.

EnerDel has an agreement to provide up to $70 million worth of batteries for Think Global over the next two years. The company recently delivered a confirmation prototype to Oslo, Norway, for Think’s installation into a Th!nk City vehicle. The next production milestone is the delivery of 20 pre-production units to Think from the end of August.