http://www.electrovaya.com/pdf/PR/2007/PR20071214.pdf

Toronto, Ontario – December 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

Highlights

- 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(R) 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.