Ener1, Inc. (Ener1), a US-based developer and manufacturer of advanced lithium-ion batteries, has reported net sales of $8.2 million for the first quarter of 2009, compared with the net sales of $97,000 in the year-ago quarter. It has also reported a net loss of $7.3 million, or $0.06 loss per share, for the first quarter of 2009, compared with the net loss of $13.7 million, or $0.15 loss per share, in the year-quarter.

Business Update:

Ener1 announced production readiness at its lithium-ion battery plant in Indianapolis on Friday, May 8, 2009. Senator Evan Bayh presided over the event that launched the first fully automated production line in the U.S. for volume production of both lithium-ion cells and battery packs.

EnerDel announced the signing of a Letter of Intent with Fisker Automotive on Friday, May 8, 2009 with a view to signing a supply agreement in the next few months. Fisker Automotive is currently targeting production of 15,000 vehicles a year, and expects to launch its Karma line of automobiles in June, 2010.

Customer interest in the company’s lithium-ion batteries remains strong, despite distress in the automobile industry and current recessionary economic conditions.

Financial Highlights:

Ener1 results include operations at Enertech International for the first quarter 2009.

Gross margin was $1.4 million for the quarter.

Despite a depreciated Korean won, Enertech was profitable in the first quarter of 2009 with net income of $141 thousand on sales of $7.9 million. EBITDA for Enertech was $1.3 million.

Operating expenses were $12.0 million in 2009, compared to $5.8 million in 2008 as Enertech operations were included for a full quarter in 2009.

Significant non cash operating items in the 2009 quarterly results of $3.1 million include $1.8 of depreciation and amortization and $1.3 million of stock-based compensation expense.

Research and development expenses were $6.3 million in the first quarter of 2009.

General and administrative expenses were $4.6 million in the first quarter of 2009.

Weighted shares outstanding were 113.5 million in 2009 compared to 93.4 million in 2008.

Shareholder’s equity is $85.8 million.

Ener1 total assets are $133 million.

Investment:

Capital expenditures were $5.8 million, which includes $3.1 million at Enertech-related to planned expansion of cell production capacity and $2.7 million for expenditures at EnerDel related to commitments in place at December 31, 2008.

Liquidity:

Cash at March 31 was $6.5 million.

Ener1 has a $30 million loan facility with Ener1 Group to finance operations during 2009. The companyhave borrowed $10 million under the facility through May.

Enertech has bank loan availability of which $3.5 million was available at quarter-end.

Net loss after non-cash items was $7.4 million; cash used for working capital was $4.4 million.

“The first quarter was marked by continued execution against the strategic plan laid out in the fourth quarter earnings call,” commented chairman and chief executive officer, Charles Gassenheimer. “We have a clear focus for production, sales and marketing and plant expansion. We believe we have all the necessary ingredients to become the leading automotive grade lithium-ion battery company.”