Ener1 Inc. Plans to Spin off Business Units

Ener1, Inc.’s board of directors has authorized a plan to spin-off the common stock of its three primary alternative energy subsidiaries to the Ener1 stockholders.

Any spin-off of these Ener1 subsidiaries will be subject to the receipt of applicable regulatory and third-party approvals and adequate financing, which Ener1 may seek in the public or private equity or debt markets. If the company is able to satisfy these conditions, the board would declare a dividend to distribute the stock of its three operating subsidiaries within the next six months. EnerDel, NanoEner and EnerFuel would each become a public reporting company under federal securities laws.

CEO Kevin Fitzgerald said, “Our three operations are alike in that they all concentrate on renewable power sources and related technologies. But they need to go in different directions now.”