http://www.electrovaya.com/pdf/PR/2010/PR20101228.pdf

TORONTO, ONTARIO, Dec 28, 2010 (Marketwire via COMTEX) --

Electrovaya Inc. (TSX: EFL | PowerRating) today announced financial results for the fourth quarter and fiscal year 2010 ended September 30, 2010. All figures are in US dollars.

Financial Highlights

--  Fiscal 2010 revenue totaled $5.0 million, a 33% increase over the

    previous fiscal year.



--  Fourth quarter fiscal 2010 revenue totaled $1.7 million, a 21% over the

    fourth quarter of the previous fiscal year.



--  Fourth quarter fiscal 2010 positive cash-flow improved to $0.9 million

    compared to a cash loss of $0.5 million in the prior fiscal year.



--  Cash and cash equivalents of $3.0 million as at September 30, 2010 were

    bolstered by a further $5.0 million mainly non-dilutive financing in

    December, 2010. On a proforma non-GAAP basis, cash and cash equivalents

    were $8.5 million as at December 23, 2010.

Business Highlights:

--  Electrovaya is producing the lithium ion battery pack for the Pick-up

    Truck PHEV (plug in Hybrid Electric Vehicle) program and has started

    shipping complete battery packs and road testing has begun. These

    battery packs include Electrovaya's proprietary Lithium Ion

    SuperPolymer(R) Cells, its Battery Management System (iBMS(R)) including

    its hardware and software, all thermal and mechanical systems along with

    power electronics and interface to the vehicle.



--  Additional Global Automotive OEMs have begun discussions with

    Electrovaya regarding its proprietary Lithium Ion SuperPolymer(R)

    technology.



--  Electrovaya expanded its product offering to address two new fast

    growing end markets - utility scale grid storage systems and data

    centers. Wind and solar energy production are typically not in sync with

    electricity demand; hence the increasing need for large scale storage of

    electricity for utilities. Additionally, with the tremendous growth in

    cloud computing applications, data centers are becoming large energy

    users with criticality on power availability.



--  The Sustainable Development Technologies Canada awarded $5 million (CDN)

    to Electrovaya in support of battery development for plug-in hybrid

    electric vehicle applications.



--  Electrovaya strengthened its board of directors with the addition of

    Thomas W. LaSorda and Clarence Chandran. Tom LaSorda, formerly CEO of

    Chrysler, joined Electrovaya as Special Advisor to the CEO and member of

    the board of directors in March, 2010. Clarence J. Chandran, formerly

    COO of Nortel Networks, joined Electrovaya's board of directors in

    August, 2010. Additionally, an Office of the Chairman was recently

    formed to focus on global licensing and joint venture opportunities.

    This Office is comprised of, Tom LaSorda, Clarence Chandran and Dr.

    Bejoy Das Gupta, together with the Chairman and CEO Dr. Sankar Das

    Gupta.

"Fiscal 2010 was a year of tremendous accomplishments and increasing momentum as we established ourselves as a key supplier to a major OEM in the automotive sector, expanded our reach to the utility and data center end markets, and strengthened our board and management team with the addition of several key industry veterans," commented Dr. Sankar Das Gupta, Chairman and CEO of Electrovaya. "We are very pleased to report steady top-line growth and improvement of our cash position despite our substantially increased work load associated with the development of the complete battery system for our major OEM automotive client," commented Dr. Sankar Das Gupta. "Our battery system consists of intensively engineered cells, thermal management, software and hardware in our battery management system, all mechanicals, power electronics and the necessary interface to vehicle electronics."

"We have also begun discussions with additional automobile manufacturers and have found that our unique and proprietary Lithium Ion SuperPolymer(R) technology is of interest to other Global OEMs. Green vehicle manufacturers need complementary Green manufactured Lithium Ion batteries," added Dr. Das Gupta.

"In addition to our progress in the automotive market, we have established a position within the burgeoning stationary grid market, an increasingly important user of lithium-ion batteries as utilities strive to meet growing energy storage needs. Our technology has advantages in terms of energy density, cost, and unique clean manufacturing (NMP-free). We are also addressing the growing need for energy storage by data centers as cloud computing increases the need for energy storage."

"We have also meaningfully bolstered our team and Board of Directors over the past year to help us achieve our business and financial goals. Electrovaya announced two key additions to its Board in fiscal 2010, including former Chrysler CEO Thomas W. LaSorda, as special advisor and former Nortel COO, Clarence J. Chandran. The addition of these industry experts positions the Company well to expand manufacturing and operations, as well as secure key partnerships as it continues its trajectory of growth.

"Our momentum in Fiscal 2011 continues with the announcements of last week," continued Dr. Das Gupta. "We have secured CDN $5 million in funding to provide us with valuable working capital for future growth, including strategic initiatives, manufacturing capacity and technology expansion, and we formed the Office of the Chairman, comprised of myself and our three lead directors, Tom Lasorda, Clarence Chandran, and Dr. Bejoy Das Gupta. Together we will focus on continuing to advance our unique, advanced NMP-free technology to create efficiencies in commercial automotive, utility scale energy storage and consumer electronics applications, through a variety of avenues, including joint ventures, licensing, strategic investors and partnerships."

Summary of Financial Results

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                                    3 months ended         12 months ended

 In thousands of US$ except                Sept 30                 Sept 30

  per share amounts               2010        2009        2010        2009

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 Revenue                       $ 1,736     $ 1,435     $ 5,025     $ 3,782

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 Profit (Loss) from

  operations before

  interest, taxes, foreign

  exchange and amortization     $ (132)      $ 942    $ (1,481)     $ (305)

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 Profit (Loss) for the

  period                          (501)        549    $ (2,351)     $ (577)

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 Gain (Loss) per share         $ (0.01)     $ 0.01     $ (0.03)    $ (0.01)

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 Cash & cash equivalents       $ 3,001     $ 5,614     $ 3,001     $ 5,614

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