NEW YORK, Aug. 13 /PRNewswire-FirstCall/ -- Ener1, Inc. (Amex: HEV), maker
of advanced battery technology designed to power the next generation of hybrid
and electric vehicles, strengthened its advantage in the lithium-ion battery
race, by acquiring 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.
(Logo: http://www.newscom.com/cgi-bin/prnh/20080312/CLW018LOGO )
"The agreement gives Ener1 sole ownership of crucial assets at an
important time in this rapidly growing industry," said Ener1 Chairman, Charles
Gassenheimer. "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."
In addition to the state-of-the art manufacturing facility near
Indianapolis, Indiana, Ener1 emerges from the Delphi arrangement with a wealth
of human capital and industry know-how, specifically a world class battery
management systems team that makes it an industry leading end-to-end solutions
provider. Ener1 also received contributions to its already extensive patent
portfolio. Delphi will have no operating control of the EnerDel subsidiary and
will no longer maintain a seat on the company's Board of Directors.
Ener1 has a number of key advantages in the intensely competitive
lithium-ion market. In addition to having the only U.S. manufacturing
facility, the company has close ties to the prestigious Argonne National
Laboratory and ITOCHU Corporation -- a major shareholder and key distributor
of the high-precision equipment needed for lithium-ion battery production.
The company recently received the prestigious R&D 100 award for excellence
in its technology and uniquely innovative design. The award is shared by
EnerDel and its partners at Argonne. EnerDel is an active member of the United
States Advanced Battery Consortium, which works closely with automakers,
component companies and others to accelerate the commercial development of new
battery technology.
EnerDel has an agreement to provide up to $70 million worth of batteries
for the Think contract 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.
"The market demands new technology from suppliers, particularly now when
the need to transition away from fossil fuels is great. This is an opportunity
for us to unlock important resources and bring them into play quickly and
competitively," Gassenheimer said. "It means greater value for Ener1 as a
company."
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.
Under the original formation agreement, Ener1 had the right to first
refusal with respect to any offers to buy out Delphi's interest in EnerDel.
Ener1 exits the agreement maintaining its debt-free status. At current burn
rate, the company is fully funded at present levels of activity through the
end of 2009.
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.
About Ener1, Inc.:
Ener1 develops and manufactures compact, high performance lithium-ion
(Li-ion) batteries to power the next generation of hybrid and electric
vehicles. The publicly traded company (Amex: HEV) is led by an experienced
team of engineers and energy system experts who are building proprietary
innovations based on technology originally pioneered at the Argonne National
Lab, the engineering and chemistry teams at its lithium-ion battery subsidiary
in Indiana, and the assistance of ITOCHU Corporation.
Ener1 makes its batteries in Indiana, in a state-of-the-art facility, and
expects to be the first company to mass-produce a cost-competitive lithium-ion
battery for hybrid and electric vehicles in the United States. Demand for cost
effective battery solutions is being driven by a need to reduce dependence on
oil as well as growing concern about vehicle emissions. In addition to the
autos, applications for Ener1 technology include military and aerospace,
utilities and industrial, medical, and other growing markets.
Major shareholders are Ener1 Group, Inc., a privately held, global
investment and advisory firm, and ITOCHU Corporation, a Japanese trading
company and distributor of manufacturing equipment essential to lithium-ion
battery production that has annual revenue of approximately $90 billion and
offices in more than 80 countries. Ener1 also receives funding from a number
of institutional investors.
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.
About Delphi:
Delphi is a leading global supplier of mobile electronics and
transportation systems, including powertrain, safety, steering, thermal, and
controls & security systems, electrical/electronic architecture, and in-car
entertainment technologies. Engineered to meet and exceed the rigorous
standards of the automotive industry, Delphi technology is also found in
computing, communications, consumer electronics, energy and medical
applications. Headquartered in Troy, Mich., Delphi has approximately 159,000
employees and operates 153 wholly owned manufacturing sites in 34 countries
with sales of $22.3 billion in 2007. Delphi can be found on the Internet at
www.delphi.com
Contacts: INVESTOR RELATIONS: MEDIA RELATIONS
Rachel Carroll Jon Coifman
VP Corporate Communications Waggener Edstrom Worldwide
P: 212 920 3500*105 P: 212 907 6516
E: rcarroll@ener1.com E: jcoifman@waggeneredstrom.com
SOURCE Ener1, Inc.
-0- 08/13/2008
/CONTACT: Investors, Rachel Carroll, VP Corporate Communications,
+1-212-920-3500 *105, rcarroll@ener1.com; or Media, Jon Coifman, Waggener
Edstrom Worldwide, +1-212-907-6516, jcoifman@waggeneredstrom.com, for Ener1,
Inc./
/Photo: http://www.newscom.com/cgi-bin/prnh/20080312/CLW018LOGO
AP Archive: http://photoarchive.ap.org
PRN Photo Desk, photodesk@prnewswire.com/
/Web site: http://www.ener1.com
http://www.enerdel.com
http://www.delphi.com /
(HEV)
CO: Ener1, Inc.; EnerDel; Delphi
ST: New York
IN: CSE CPR AUT
SU: TNM
TI-DB
-- CLW019 --
8765 08/13/2008 05:30 EDT http://www.prnewswire.com
