Ener1 Presents Advances in Battery Technology At the 11th International Meeting on Lithium Batteries; Dr. Shembel Describes Breakthroughs in Materials and Operating Conditions.

Business Editors/Technology Writers

BOCA RATON, Fla. & MONTEREY, Calif.--(BUSINESS WIRE)--July 22, 2002

Ener1 Group, Inc., parent company of Ener1, Inc. (OTCBB:INPM), recently conducted a series of lectures highlighting Ener1's advancements in lithium power sources at the 11th International Meeting on Lithium Batteries in Monterey, California. The conference was sponsored by the Electrochemical Society.

Dr. Elena Shembel, director of research and development at Ener1's battery unit, gave two presentations detailing the company's first-of-its-kind lithium secondary battery technology that utilizes inexpensive, non-toxic iron-disulfide that is able to cycle at room temperature.

The two technical presentations were entitled:

- Lithium-Ion Batteries with Polymer Electrolyte

- Lithium-Metal Secondary Batteries with Polymer Electrolyte and

Cathode Based on Metal Oxides

"The presentations by Ener1 demonstrate our continued commitment to the further development of energy technology, based both on fundamental and applied investigations and developments," said Dr. Shembel.

In her presentation, Dr. Shembel described Ener1's breakthroughs in electrochemical systems for use in high-energy lithium-metal secondary (rechargeable) batteries. Specifically discussed was Ener1's development of a completely new lithium-metal secondary battery incorporating a cathode based on iron-disulfide (FeS2). Using the FeS2 cathode, the power source can be, for the first time, cycled at room temperature. By contrast, currently-available secondary batteries, based on pyrite, operate at the high temperature of 300 degrees Celsius using a melt electrolyte or at temperatures above 100 degrees Celsius with a polymer electrolyte.

Ener1's lithium-iron-sulfide (Li-FeS2) system is attractive for the following reasons:

- Iron-disulfide has higher specific weight and volume

characteristics (890 Ah/kg and 4.45 Ah/ml) than the known

inorganic cathode materials.

- Iron-disulfide is an inexpensive and non-toxic material.

- Lithium batteries based on Li-FeS2 chemistry, provide a

highly-compatible operating voltage of 1.5 V. Therefore, they

can be used as a direct replacement for traditional

zinc-manganese, nickel-cadmium, or nickel-hydride batteries

without requiring any changes to the electronic devices in which

they are used.

Also discussed by Dr. Shembel were the following Ener1 battery materials and technologies:

- Polymer electrolyte for lithium-metal and lithium-ion secondary

batteries.

- Solid inorganic electrolytes and their production as thin layers

for a completely solid-phase battery.

- Non-contact/non-destructive control methods for the production

of lithium batteries.

- Graphite for use as the anode of lithium-ion secondary

batteries.

- Cathodes based on LiMn2O4.for lithium-ion secondary batteries.

"Dr. Shembel's presentations demonstrate the uniqueness and high efficiency of our developed lithium-metal secondary batteries," stated Dr. Peter Novak, chief technology officer for Ener1's battery unit and co-founder of Ener1 Group. "The interest evoked by Ener1's presentations confirms the importance of the work accomplished by our R&D team. Ener1 aims to become a battery industry leader by selling unique lithium-metal secondary batteries, and licensing the unique technologies and materials being developed."

Ener1, Inc. announced last month that it agreed in principle to acquire Ener1 Battery from its parent company, Ener1 Group, Inc. Consummation of the transaction is subject to required shareholder and regulatory approvals, due diligence, negotiation and execution of definitive agreements and other conditions. In connection with the transactions, Ener1 Group plans to provide the company with funding of $6.7 million, much of which is for the development of its battery-related business.

Once the Ener1 Battery acquisition is completed, Ener1's battery unit will have a team of scientists and engineers including more than a dozen Ph.D.s, possessing research and development skills in electrochemistry, materials science, physics, as well as in manufacturing. Ener1's new battery production facility, incorporating more than $23 million in equipment and facility improvements, is scheduled to go into operation in the third-quarter.

About Ener1, Inc.

Ener1, Inc. (OTCBB:INPM), based in Boca Raton, Florida, is the new trade name for Inprimis, Inc. The company leverages its expanding portfolio of patent-pending technologies and advanced digital media technology to develop, manufacture and distribute products and services for a variety of commercial and government markets.

For more information, visit the company's Web site at http://www.ener1.com or call 561-997-6227.

Safe Harbor Statement

This release contains forward-looking statements within the meaning of the Federal Private Securities Litigation Reform Act of 1995. These forward looking statements involve risks and uncertainties, including, but not necessarily limited to, the change in control of Ener1, Inc. and dilution to existing shareholders of Ener1, Inc. caused by the transactions with Ener1 Group, Inc., the history of operating losses incurred by Ener1, Inc. and its need for additional capital, the lack of any operating history for the development stage Ener1 battery business to be acquired, the need for additional capital for the Ener1 battery business, the inability to complete the acquisition of the Ener1 battery business, the ability to enter into and receive revenue from new contracts, the rate of development of the information appliance market, the successful development and market acceptance of new products and services, the degree of competition in the market for such products and services, competitive pricing practices, dependencies upon key personnel, and low barriers of entry into the software development and services markets. Further, a significant portion of the company's sales is derived from a limited number of customers, the loss of one or more of which could adversely impact operating results. Some of these and other risks are detailed in the company's' annual report on Form 10-K for the year ended December 31, 2001, as well as in the company's other filings with the Securities and Exchange Commission. Such 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.