Losses grow for EnerDel parent, but sales rise

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Ener1 Inc., the parent company of Indianapolis-based EnerDel, saw widening losses in the third quarter despite rising revenue.

New York-based Ener1 reported late Monday that it suffered a third quarter loss of $15.8 million, or 14 cents a share,
compared with a year-ago loss of $9 million, or 8 cents a share. Revenue rose to $8.1 million, compared to $7.5 million in
the second quarter of 2009 and $39,000 in the third quarter of 2008.

Management reported a significant increase in sales
and customer inquiries, but said losses grew due to higher research-and-development expenses.

EnerDel, which develops
lithium-ion batteries for cars, recently announced a $100 million expansion to create 850 jobs across Indiana by 2012.

The expansion, announced in late August, earmarks 277 of the new positions for the Indianapolis area.

The
lithium-ion battery company said it will add 217 jobs to the 100 positions at its headquarters at 8740 Hague Road on the far
northeast side of Indianapolis. The new Indianapolis jobs will involve research and cell production.

Sixty more
jobs will be located at 15425 Herriman Boulevard in Noblesville, where a renovation is expected to begin soon. The Noblesville
location will assemble battery packs.

The rest of the jobs, 478, will be based at a battery manufacturing plant
to be located at an undetermined site in Indiana.

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