Electrovaya Inc.

Electrovaya Inc.

December 14, 2007 17:05 ET

Electrovaya Announces Fourth Quarter and Year-End Fiscal 2007 Financial Results

TORONTO, ONTARIO--(Marketwire - Dec. 14, 2007) - Electrovaya Inc. (TSX:EFL) today announced financial results for the fourth quarter and year ended fiscal 2007. All figures are in US dollars.


- Delivered the Ford Escape SUV Plug-in Hybrid Electric Vehicle (PHEV) to the New York State Energy Research and Development Authority (NYSERDA).

- Received an initial order from Kongsberg Maritime, Norway, an OEM for Underwater Vehicles, and subsequently signed a five-year contract to provide our proprietary Lithium Ion Superpolymer® cells and, at the option of Kongsberg, to complete further work related to a battery pack to power the Kongsberg Maritime Underwater Vehicle.

- Entered into a Memorandum of Understanding ("MOU") for an advanced hybrid electric powertrain for the US Air Force Research Laboratory, totalling approximately $0.5 million.

- Received a purchase order for battery packs for Zero Emission Vehicles ("ZEV") from Miljobil Grenland AS, a subsidiary of Skagerak Energy and Norsk Hydro.

- Signed an MOU to establish a Joint Venture polymer Lithium Ion battery plant in India with Electrotherm India Ltd., a leading manufacturer of electric vehicles in India.

Financial Highlights

For the quarter ending September 30, 2007:

- Revenue increased by 17.6% or $84,000 to $560,000 from $476,000 for the quarter ended June 30, 2007 and decreased $353,000 or 38.7% from 913,000 during the quarter ended September 30, 2006.

- Loss from operations, before interest, taxes, foreign exchange, amortization, capital assets write-down and the gain on sale of investments decreased by $284,000 or 26.4% to $790,000 compared to $1,074,000 compared to the prior quarter and increased by $422,000 from $368,000 in the same quarter in the prior year, mainly due to $487,000 more Government Assistance in the same quarter prior year.

- Cash & investments were $7.2 million as at September 30, 2007, compared to $7.9 million as at June 30, 2007 and $10.2 million as at September 30, 2006

Summary of Financial Results

In thousands of US$ 3 months ended 12 months ended
except per share Sept 30 Sept 30
amounts 2007 2006 2007 2006
Revenue $ 560 $ 913 $ 2,344 $ 3,358
Loss from
operations before
interest, taxes,
foreign exchange
and amortization,
capital assets
write-down and
gain on sale of
investments $ (790) $ (368) $ (3,573) $ (3,918)
Loss for the
period (i) $ (1,236) $ (480) $ (4,641) $ (7,940)
Loss per share $ (0.02) $ (0.01) $ (0.07) $ (0.11)
Cash &
investments $ 7,247 $ 10,150 $ 7,247 $ 10,150
(i) 2006 included a $887,000 gain on the sale of an investment and
a $4 million capital asset write-down.

The Company's complete Fiscal 2007 Fourth Quarter and Annual Financial Statements and Management Discussion and Analysis are available at www.sedar.com or on the Company's website at www.electrovaya.com.

About Electrovaya Inc.

Electrovaya (TSX:EFL) is a developer and manufacturer of portable power solutions with its proprietary Lithium Ion SuperPolymer® battery technology. Its goal is to become the preferred provider of tablet PCs, portable power for aerospace, defence and wireless sectors, and the developer of alternative energy applications including UPS, stand-by power, plug-in hybrids and Zero-Emission Vehicle. The Company's shares trade on the Toronto Stock Exchange under the symbol EFL.

For more information about the Company and its products, please visit our website at www.electrovaya.com.

Forward-Looking Statements

This news release may contain forward-looking statements that involve a number of risks and uncertainties, including statements regarding the outlook for the Company's business and results of operations. Risks are outlined in the Company's MD&A for the year ending September 30, 2007 and are set forth in public disclosure documents filed with Canadian regulatory authorities. By nature, these risks and uncertainties could cause actual results to differ materially from those indicated. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

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