Electrovaya Inc.

Electrovaya Inc.

September 13, 2012 06:00 ET

Electrovaya Increases Its Ownership to 99.6% of the Shares of Miljobil Grenland AS, an European Lithium Ion Battery Company

TORONTO, ONTARIO--(Marketwire - Sept. 13, 2012) - Electrovaya Inc. (TSX:EFL) today announced that it has agreed to increase its position from 78.1% to 99.6% of the shares of Miljøbil Grenland AS (MBG). MBG is based in Porsgrunn, Norway.

"MBG's excellent technical team and facilities enable Electrovaya to better serve European automotive OEMs, utilities, maritime and other customers." says Paul Hart, Chief Executive Officer of MBG and Chief Financial Officer of Electrovaya. "In addition to a new European base to support our marketing and technical efforts, we have significant battery testing and validation capabilities as well as access to many new maritime opportunities." adds Mr. Hart.

"The MBG acquisition was completed through the purchase of shares for nominal consideration and was non-dilutive to Electrovaya's existing shareholders. MBG is essentially free of short term debts, with a good cash position." concludes Mr. Hart.

MBG is a battery integrator with over $30 million invested in developing battery systems for automotive, maritime and similar applications. MBG is an excellent fit for Electrovaya as MBG does not manufacture lithium ion cells or battery management systems (BMS), but integrates externally manufactured cells and BMS into systems and battery packs. Electrovaya on the other hand manufactures both the fundamental lithium ion polymer cells as well as the intelligent battery management systems and previously had no European base of operations. Prior to Electrovaya's acquisition, MBG's revenue was focussed on its single OEM shareholder, while now its revenue focus will be throughout Europe. MBG owns substantial technology Intellectual Property, including patents and recently sold a non-exclusive license for its technology for $2.9 million.

About Miljøbil Grenland AS:

Miljøbil Grenland AS (MBG) is a technology and engineering company with cutting-edge expertise in energy storage, electric vehicles and proprietary battery systems technology.

MBG has developed Li-ion battery systems for the automotive industry and is working on new applications for use in electrically powered ferries and other transportation and energy storage applications. MBG was founded in 1997 and is based in Porsgrunn, Norway. To learn more about how MBG is developing Clean Energy technology, please explore www.miljobil.no.

About Electrovaya Inc.

Electrovaya Inc. (TSX:EFL) designs, develops and manufactures proprietary Lithium Ion SuperPolymer® batteries, battery systems, and battery-related products for the clean electric transportation, Utility Scale Energy Storage and smart grid power, consumer and healthcare markets. The Company's mission is to accelerate clean transportation as a commercial reality with its advanced power system for all classes of zero-emission electric vehicles and plug-in hybrid electric vehicles. The Company's other mission is to deliver Utility Scale Energy Storage Systems for the highest efficiency in electricity storage, whether the electricity is generated from intermittent wind and solar power or from other sources. Founded in 1996 and headquartered in Ontario, Canada, Electrovaya has production facilities in Canada as well as in the US, and customers around the globe. To learn more about how Electrovaya is powering mobility, please explore www.electrovaya.com.

Forward-Looking Statements

This press release contains forward-looking statements that involve a number of risks and uncertainties, including statements that relate to, among other things, the Company's objectives, goals, strategies, intentions, plans, beliefs, expectations and estimates, and can generally be identified by the use of words such as "may", "will", "could", "should", "would", "likely", "expect", "intend", "estimate", "anticipate", "believe", "plan", "objective" and "continue" (or the negative thereof) and words and expressions of similar import. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, such statements involve risks and uncertainties, and undue reliance should not be placed on such statements. Certain material factors or assumptions are applied in making forward-looking statements, and actual results may differ materially from those expressed or implied in such statements. Important factors that could cause actual results to differ materially from expectations include but are not limited to: general business and economic conditions (including but not limited to currency rates and creditworthiness of customers); Company liquidity and capital resources, including the availability of additional capital resources to fund its activities; level of competition; changes in laws and regulations; legal and regulatory proceedings; the ability to adapt products and services to the changing market; the ability to attract and retain key executives; and the ability to execute strategic plans. Additional information about material factors that could cause actual results to differ materially from expectations and about material factors or assumptions applied in making forward-looking statements may be found in the Company's most recent annual and interim Management's Discussion and Analysis under "Risk and Uncertainties", as well as in other public disclosure documents filed with Canadian securities regulatory authorities. The Company does not undertake any obligation to update publicly or to revise any of the forward-looking statements contained in this document, whether as a result of new information, future events or otherwise, except as required by law.

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