http://www.electrovaya.com/pdf/PR/2012/PR20120514.pdf

TORONTO, ONTARIO--(May 14, 2012) - Electrovaya Inc. (TSX:EFL) today announced financial results for the second quarter of Fiscal 2012 ending March 31, 2012. All figures are in US dollars. This quarter is Electrovaya's second quarter of reporting under International Financial Reporting Standards ("IFRS").

Financial Highlights:

• Working capital remains stable at $6.4 million.
  
  
• Revenue was $2.4 million in Q2, FY 2012 compared to $2.7 million during the same quarter in the prior year and $2.5 million in Q1 FY 2012.
  
  
• Gross profit was $493,000 or 20.6% in Q2 and 24.8% for the six months ending March 31, 2012.
  
  
• Operating expenses decreased by $105,000 to $851,000 in Q2 from $956,000 during the same quarter in the prior year, as the Company continued to carefully manage expenses.
  
  
• Non-IFRS loss from operations was $187,000 for the six months ending March 31, 2012.
  
  

Business Highlights:

• Electrovaya continues to focus on automotive and large scale energy storage programs. Recently Electrovaya was a featured presenter at the 22nd Annual Meeting of the Energy Storage Association in Washington DC, the keynote speaker at the Michigan Hybrid Engineer event as well as exhibited at the 26th Electric Vehicle Symposium (EVS26) in Los Angeles.
  
  
• In the automotive sector, Electrovaya is leveraging its successful experience with Chrysler and others for plug-in hybrid and electric vehicle systems and is in discussions with major OEMs.
  
  
• For utility energy storage applications, Electrovaya has its first large scale system operating in Arizona. Electrovaya is one of few companies to have built and installed MWh scale lithium ion battery systems and is in discussions with several utilities for multiple projects.
  
  
• Electrovaya's energy storage projects with Hydro One and Manitoba Hydro are progressing well and Electrovaya expects to be installing a MWh scale device in Ontario later this summer. The demand for such products is increasing and Electrovaya expects to ramp up production to meet growing demand for energy storage capability.
  
  
• Electrovaya launched the "Energy Block" line of midsize storage systems. This product line is designed for residential solar, commercial and telecom applications. The first unit, 25kWh (PB25-400V) system, was delivered to a major Japanese Utility.
  
  
• Electrovaya has now completed the battery systems for the Chrysler RAM and Minivan plug-in hybrid electric vehicle (PHEV) programs, and both platforms are progressing into the deployment phase. Electrovaya continues to support and work on this project.
  
  

"Electrovaya is building its sales pipeline in both the Automotive and Grid Scale Energy Storage markets," said Dr. Sankar Das Gupta, Chairman and CEO. "Electrovaya is fiscally conservative and we believe this along with our ethical manufacturing process, our technology and experience will continue to lead us on a sustainable growth path over the next few years."

The Company's complete Fiscal 2012 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 14, 2012 at 5:00 p.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 9 p.m. (ET) on May 14, 2012 through 11:59 p.m. (ET) on May 30, 2012. 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 replay access account is 393# and the conference ID is 394527#