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EnerDel is developing Lithium-ion battery solutions for automotive manufacturers that will improve the performance, fuel-efficiency and cost of hybrid electric vehicles. The company's new, highly reliable and safe batteries are designed to be lighter in weight, occupy less space, provide more power, more energy, and have a longer life than the nickel metal hydride batteries found in today's hybrid vehicles.

EnerDel was formed in October 2004, when alternative energy company Ener1, Inc. (http://www.ener1.com), and the world's largest automotive components company Delphi Corporation (http://www.delphi.com) combined lithium battery operations. The company is owned 80.5% by Ener1, Inc. (OTCBB: ENEI) 19.5% by Delphi Corporation (NYSE: DPH).

EnerDel is developing its batteries in Indiana. By utilizing a unique, highly automated manufacturing process, EnerDel expects to succeed at being the first company to cost-competitively mass-produce a Li-ion battery in the United States. And by serving as a local supplier of advanced performance batteries, the company is able to contribute to the success of the automotive companies who manufacture hybrids in North America.

Beyond the automotive sector, markets for EnerDel's battery technology include military and aerospace, asset tracking and other specialty battery applications.

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