Ener1 Chairman's Letter to Shareholders.FORT LAUDERDALE Fort Lauderdale (lô`dərdāl), residential, commercial, and resort city (1990 pop. 149,377), seat of Broward co., SE Fla., on the Atlantic coast; settled around a fort built (c.1837) in the Seminole War, inc. 1911. , Fla. -- Ener1, Inc. (OTCBB OTCBB See OTC Bulletin Board (OTCBB). : ENEI ENEI Encuesta Nacional de Empleo e Ingresos (Guatemala) ) Chairman Charles Gassenheimer today issued the following letter to shareholders and the investment community. Dear Shareholder, We are pleased to inform you regarding the company's strides in commercializing its technologies. Our battery company EnerDel has signed a contract with the U.S. Advanced Battery Consortium (USABC). The contract validates the path we are taking to mass produce superior performing lithium ion (Li-Ion) batteries in the U.S. at a superior value. We believe our batteries will greatly improve the fuel efficiency of future hybrid vehicles, helping to reinvent the U.S. auto industry and curtail our country's dependence on foreign oil. This Phase 1 contract with the USABC is a concrete step in a proposed three phase plan that will provide revenue of scale. The USABC is a part of the United States Council for Automotive Research, an organization comprised of DaimlerChrysler, Ford and General Motors, in collaboration with the Department of Energy. EnerDel is now mid-way through phase one, and upon its successful completion, the company will pursue a Phase 2 contract with the USABC. EnerDel recently installed its first phase electrode mass production line, which can yield the equivalent of 5,000 hybrid batteries per month, at its Indiana facility. This line demonstrates our production capabilities to the USABC and is an important step forward in our launch plans to mass manufacture our Li-Ion technology for automotive applications. It also enables EnerDel to produce battery samples for potential automotive customers and begin qualifying as a North American supplier of Li-Ion hybrid vehicle batteries. Ener1's fuel cell company is delivering innovative products to the marketplace. This summer, as promised, EnerFuel introduced a series of fuel cell humidifiers for PEM fuel cell systems. Customers for this product include leading fuel cell system manufacturers, such as IdaTech, Hydrogenics and Cellex - inspiring confidence for the company's capabilities throughout the fuel cell industry. As part of a focused, staged commercialization plan, EnerFuel is developing several technologies and expects to release its next product in approximately nine months. The company's project to power an interstate rest stop in Florida with a fuel cell that runs on methanol derived from citrus waste is also progressing. The rest stop will serve as a demonstration site for our technology and educate commuters about the energy efficient benefits of fuel cells. We are working closely with state officials and will unveil the location of the rest stop shortly. Ener1 has embarked on a campaign to increase awareness for our company's progress with the investment community. The Company's historical SEC issues are resolved, its financials restated and registration statements are updated. In the past three months, we participated in the RedChip Small Cap Investor Conference, Merriman, Curhan Ford & Co.'s Next Generation Energy Conference and Equities Magazine Investment Conference. Later this month we are scheduled to present at Merriman's Investor Summit 2006 in San Francisco and Equities Magazine Transatlantic Corporate Conference at the American Stock Exchange in New York. We will post these upcoming presentations on our website (www.ener1.com). Ener1 was profiled in Equities Magazine and featured in the Indiana Business Journal. These articles can also be found on our website. I am pleased with our management team's steadfast commitment to our business plan. We are focused on our commercialization activities. Regards, Charles Gassenheimer Chairman About Ener1, Inc. Ener1, Inc. (OTC Bulletin Board OTC Bulletin Board An electronic quotation listing of the bid and asked prices of OTC stocks that do not meet the requirements to be listed on the NASDAQ stock-listing system. : ENEI) is an alternative energy technology company. The company's interests include: EnerDel (www.enerdel.com), a lithium battery Lithium batteries are primary batteries that have lithium metal or lithium compounds as an anode. Depending on the design and chemical compounds used lithium cells can produce voltages from 1.5V to about 3V, twice the voltage of an ordinary zinc-carbon battery or alkaline cell. company in which Delphi Corp. owns a minority share; Enerstruct, a Japanese lithium battery technology company in which Ener1's strategic investor ITOCHU owns the majority share; wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. EnerFuel, a fuel cell products and testing services company (www.enerfuel.com), and wholly owned subsidiary NanoEner, which develops nanotechnology-based materials and manufacturing processes for batteries and other applications (www.nanoener.com). For more information, visit http://www.ener1.com or call 954-556-4020. Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. Statement This release contains forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. within the meaning of the Federal Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995 conveying management's expectations as to the future based on plans, estimates and projections at the time the statements are made. The forward-looking statements contained in this press release involve risks and uncertainties, including, but not necessarily limited to: Ener1's ability to succeed as a supplier of batteries to the hybrid electric vehicle A hybrid electric vehicle (HEV) is a vehicle which combines a conventional propulsion system with an on-board rechargeable energy storage system (RESS) to achieve better fuel economy than a conventional vehicle without being hampered by range from a charging unit like an and other markets; Ener1's plans to reduce costs and gain a competitive advantage by consolidating manufacturing operations Manufacturing operations concern the operation of a facility, as opposed to maintenance, supply and distribution, health, and safety, emergency response, human resources, security, information technology and other infrastructural support organizations. and implementing automated au·to·mate v. au·to·mat·ed, au·to·mat·ing, au·to·mates v.tr. 1. To convert to automatic operation: automate a factory. 2. production processes; charges Ener1 will incur To become subject to and liable for; to have liabilities imposed by act or operation of law. Expenses are incurred, for example, when the legal obligation to pay them arises. An individual incurs a liability when a money judgment is rendered against him or her by a court. in connection with consolidating manufacturing operations; EnerFuel's ability to develop and sell products and services in its planned markets; the degree of competition in the markets for lithium battery, fuel cell and nanotechnology-based products and services, Ener1's history of operating losses operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. , the lack of operating history for the development stage Ener1 businesses, the need for additional capital, the dependency dependency In international relations, a weak state dominated by or under the jurisdiction of a more powerful state but not formally annexed by it. Examples include American Samoa (U.S.) and Greenland (Denmark). upon key personnel and other risks detailed in Ener1's filings from time to time with the Securities and Exchange Commission. These risks and uncertainties could cause actual results or performance to differ materially from any future results or performance expressed or implied in the forward-looking statements included in this release. Ener1 undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. |
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