Electrovaya Reports Second Quarter FY 2013 Results

TORONTO, ONTARIO--(Marketwired - May 14, 2013) - Electrovaya Inc. (TSX:EFL) today announced financial results for the second quarter of Fiscal 2013 ending March 31, 2013.

Financial Highlights:

• Electrovaya deferred shipments during the quarter until its next generation SuperPolymer® 2.0 technology was launched in mid-April 2013, resulting in a decrease in revenue from previous quarters (as mentioned by Electrovaya in our News Release on April 17^th, 2013). Revenue was $369,000 in Q2, FY 2013 compared to $2.4 million during the same quarter in the prior year.
• Gross profit was $60,000 or 16.3% in Q2 and 23.9% for the six months ending March 31, 2013.

Business Highlights:

Electrovaya is, we believe, the only major producer of Lithium Ion batteries which does not use toxic chemicals during manufacturing. Other Lithium Ion battery companies use massive quantities of toxic chemicals which lead to large increase of their operating and capital costs, required for the containment of toxic chemicals. Electrovaya's next generation SuperPolymer® 2.0 technology is attracting wide interest with users preferring Clean Green batteries for applications in electric vehicles, solar and wind energy storage, replacement of diesel generators and multiple other applications, as much of the world starts moving from fossil fuel to clean electricity to combat Climate Change and reduce harmful and carcinogenic pollutants.

In February, 2013, Electrovaya announced that it had entered into a MOU with a major Asian conglomerate with interests in the automotive, energy, chemical and other business areas globally. The MOU envisages a relationship comprised of (a) joint venture manufacturing (b) an equity interest in Electrovaya and (c) global sales distribution.

In March, 2013, the Canadian budget highlighted Electrovaya's achievements (along with four other companies) and showed Canada's strong commitment to clean energy by investing $325 million over eight years in Canada's dynamic clean technology sector through Sustainable Development Technology Canada (SDTC).

In April, 2013, Electrovaya launched its new generation of lithium ion battery technology SuperPolymer®2.0. The Lithium Ion SuperPolymer® 2.0 battery technology is a new generation of lithium ion batteries. Key improvements in the battery system include:

• Safety improvements: fire resistance, reduced flammability, anti-propagation
• Wider operating temperature range at both hot and cold extremes
• More efficient thermal management system in a smaller space
• Other improvements along key performance metrics

Also in April, 2013, Electrovaya announced that its Lithium Ion battery energy system will be replacing a diesel powered motor for a clean marine transportation application. Diesel powered generator sets are ubiquitous around the world, are expensive and produce air pollution, many carcinogens, harmful particulate matter and noise. Electrovaya, has secured, in conjunction with its subsidiary, Miljobil Grenland AS (Miljobil) in Norway, an order for a large Lithium Ion battery system for the "Hisaroy" Electric Ferry. The Ferry will be battery-powered by Electrovaya.

In May, 2013, Electrovaya announced that it has started the delivery of automotive electric vehicle battery systems to China, with the delivery of the first prototype for DongFeng Motors (DFM). DFM, a leading Chinese automaker, is planning a major electric vehicle program powered by Electrovaya's Lithium Ion SuperPolymer® 2.0 battery.

"Electrovaya's new SuperPolymer® 2.0 is a very attractive technology and the sales pipeline is growing well in the Automotive, Grid Scale Energy Storage, Marine and diesel genset replacement markets." said Dr. Sankar Das Gupta, Chairman and CEO.

The Company's complete Fiscal 2013 Second Quarter Financial Statements and Management Discussion and Analysis are available at www.sedar.com or on the Company's website at www.electrovaya.com.

Electrovaya will hold a conference call on May 15, 2013 at 8:00 a.m. Eastern Time (ET) to discuss the Company's financial results.

Conference Call Details:

U.S and Canada toll free: (877) 407-8291

International: +1 (201) 689-8345

To help ensure that the conference begins in a timely manner, please dial in 10 minutes prior to the start of the call. For those unable to participate in the conference call, a replay will be available for two weeks beginning at 10 a.m. (ET) on May 15, 2013 through 11:59 p.m. (ET) on May 29, 2013. To access the replay, the U.S. dial-in number is (877) 660-6853 and the non-U.S. dial-in number is +1 (201) 612-7415. The conference ID is 414933.

About Electrovaya Inc.

Electrovaya Inc. (TSX:EFL) designs, develops and manufactures proprietary Lithium Ion SuperPolymer® 2.0 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.