http://biz.yahoo.com/iw/080515/03975...

CASH BURN DECREASES SIGNIFICANTLY AND RESEARCH & DEVELOPMENT EXPENSES INCREASE

TORONTO, ONTARIO--(MARKET WIRE)--May 15, 2008 -- Electrovaya Inc. (Toronto:EFL.TO - News) 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® 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
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Loss from operations before
 interest, taxes, foreign exchange
 and amortization, capital assets
 write-down and gain on sale of
 investments                       $ (815)            $ (916)
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Loss for the period                $ (694)          $ (1,167)
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Loss per share                    $ (0.01)           $ (0.02)
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Cash & investments                $ 5,311            $ 8,586
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