TORONTO, ONTARIO, May 15, 2008 (MARKET WIRE via COMTEX News Network) ----Electrovaya Inc. (TSX: EFL) today announced financial results for the second quarter of fiscal 2008. All figures are in US dollars.

Highlights

For the period ending March 31, 2008:

- Exhibited Zero Emission Vehicle Technology at the Cleantech Forum in Toronto.

- Selected as battery system supplier for plug-in hybrid demonstrator vehicle led by Raser Technologies.

- Announced version-3 Intelligent Battery Management System ("iBMS")

- Launched the Maya-300: a zero-emission, low-speed electric vehicle.

- Collaborated with ExxonMobil Chemical on the launch of the Maya 300, including incorporating battery separator films from ExxonMobil into the Electrovaya battery system design.

Subsequent to the period ending March 31, 2008:

- Presented at the Electric Drive Transportation Association's ("EDTA") Capitol Hill Briefing in Washington, DC.

- Began work on a battery pack design and production program with Phoenix Motorcars, a California-based electric vehicle manufacturer, including certain upfront engineering design services and hardware production. Electrovaya received payment in advance for a substantial portion of this work.

- Presented an update on Electrovaya's growth strategy and development of its proprietary Lithium Ion SuperPolymer(R) battery technology at the BioFinance 2008 CleanTech Seminar in Toronto, Ontario.

- Participated in an expert panel discussion at the 4th annual Merriman Curhan Ford & Co. Cleantech conference in New York City.

Financial Highlights

For the quarter ending March 31, 2008:

- Total revenue decreased by 40.9% to $476,000 from $806,000 for the quarter ended March 31, 2007, but remained relatively unchanged from $495,000 during the period ending December 31, 2007.

- Research and development expenses increased by 38.6% or $304,000 to $1,091,000 from $787,000 in the quarter ending December 31, 2007.

- Loss from operations, before interest, taxes, foreign exchange, amortization, capital assets write-down and the gain on sale of investments decreased by $101,000 or 11.0% to $815,000 compared to $916,000 in the same quarter of the prior year and $1,229,000 during the prior quarter.

- The Company had $5.3 million in cash and cash equivalents, a decrease of $0.7 million compared to $6.0 million as at December 31, 2007. As of May 13, 2008, the cash position was $5.2 million.

 Summary of Financial Results -------------------------------------------------------------
   In thousands of US$ 3 months ended March 31 except per share amounts 2008 2007 -------------------------------------------------------------
   Revenue $ 476 $ 806 ------------------------------------------------------------- Loss from operations before interest, taxes,
   foreign exchange and amortization, capital assets write-down and gain on sale of investments $ (815) $ (916) -------------------------------------------------------------
   Loss for the period $ (694) $ (1,167) ------------------------------------------------------------- Loss per share $ (0.01)
   $ (0.02) ------------------------------------------------------------- Cash & investments $ 5,311 $ 8,586 -------------------------------------------------------------
   

The Company's complete Fiscal 2008 Second 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(R) battery technology. Its goal is to become the preferred provider of 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 period ending March 31, 2008 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.

 Contacts: Electrovaya Inc. P. Hart Chief Financial Officer (905) 855-4636 Email: plhart@electrovaya.com
   Website: www.electrovaya.com The Equicom Group Glen Williams Investor Relations (416) 815-0700 Ext 272 Email: gwilliams@equicomgroup.com
   

SOURCE: Electrovaya Inc.

mailto:plhart@electrovaya.com http://www.electrovaya.com mailto:gwilliams@equicomgroup.com
   

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