EnerFuel Awarded Fuel Cell Development Contract

| Source: Ener1, Inc.

FORT LAUDERDALE, Fla., Jan. 12, 2007 (PRIME NEWSWIRE) -- Ener1, Inc. (OTCBB:ENEI) announced today that its EnerFuel, Inc. subsidiary was awarded a subcontract by American Science and Technology Corporation (AST) for fuel cell system design work. This is in support of AST's work as a subcontractor to Chicago State University for a prime contract from the Aviation Applied Technology Directorate (AATD) of the United States Army to develop light weight fuel cells for mobile robotics applications. EnerFuel has commenced work under the contract.

This contract represents an opportunity for EnerFuel to expand its efforts in collaboration with other leaders in the fuel cell industry and in the U.S. government contract arena while continuing its development of fuel cell systems for specific applications that may be commercialized in the future. EnerFuel's efforts under the contract fit their multi-layer approach to developing its business, which combines government contracts with product development and product sales for commercial markets.

The contract runs for one year. EnerFuel hopes that its work under the contract will help lay the groundwork for additional work and provide an opportunity to validate its technologies and products in the government arena as a prelude to commercialization of them.

American Science and Technology Corporation, headquartered in Chicago, Illinois is a leading research and development company with several defense-related contracts. AST manages the task performed by EnerFuel from its local West Palm Beach, Florida office.

About Ener1, Inc.

Ener1, Inc. (OTCBB:ENEI) is an alternative energy technology company. The company's interests include: 80.5% of EnerDel (http://www.enerdel.com), a lithium battery company in which Delphi Corp. owns 19.5%; 41% of Enerstruct, a Japanese lithium battery technology company in which Ener1's strategic investor ITOCHU owns 51%; wholly owned subsidiary EnerFuel, a fuel cell products and testing services company (http://www.enerfuel.com), and wholly owned subsidiary NanoEner, which develops nanotechnology-based materials and manufacturing processes for batteries and other applications (http://www.nanoener.com). For more information, visit http://www.ener1.com or call 954-556-4020.

Ener1, Inc.
Jerry Herlihy
(954) 556-4020