Instructions to Investors regarding the Reverse Split

Ener1 has approved a reverse split where investors will receive one share for every seven shares held on the effective date of April 24, 2008.

The temporary stock symbol is ENON.

Shareholders who hold their shares in brokerage accounts or "street name" will not be required to take any action to effect the exchange. All brokerage firms should have completed the transfer to the new shares with the Depository Trust Corporation by now. If your account continues to show the pre-split shares, please contact Ener1 immediately, and we will speak to your broker's reorganization department. Send an email to Jherlihy@ener1.com or call directly at 954 556-4020 x310.

"Shares received in the reverse split will be rounded up to the nearest whole number of shares. We have been advised that the issuance of shares for rounding should be reflected in your brokerage accounts no later than May 13. If your account is still showing fractional shares after May 13, 2008, please send an email to Jherlihy@ener1.com with the name of the brokerage firm, and we will contact them."


Shareholders who own shares in their name will receive a form in the mail called a Letter of Transmittal. For your convenience, you can print and complete the PDF version of the form located here. Investors should complete the form and send the form and the share certificates to our transfer agent at:

Registrar & Transfer
Investor Relations Department
10 Commerce Drive
Cranford, NJ 07016