Enova Systems Reports Continued Progress in SEC Filing

Business Wire, June 4, 2001

Business Editors

TORRANCE, Calif.--(BUSINESS WIRE)--June 4, 2001

Enova Systems, Torrance (OTCBB:ENVA), has submitted its Form 10-Q for the first quarter of 2001 (through March 31, 2001), to the U.S. Securities and Exchange Commission.

Building on the progress noted in its recent Form 10-K filing for the year 2000, the company reported an increase of $485,000 in gross sales compared with the corresponding quarter in 2000. Revenues increased by 77% over the corresponding period.

Reflecting the growing opportunities for Enova's products, research and development expense also increased, more than doubling to $267,000 in the first quarter of 2001, compared to the corresponding quarter in 2000.

The company's net loss from continuing operations in the first quarter of 2001 was $270,000 compared to a net loss of $381,000 in the first quarter of 2000.

"Enova's experienced management team and its board of directors have done a great job helping move the company in a sound management and financial direction," said Carl Perry, president and CEO of Enova. "We have constructed a comprehensive five-year business plan to continue its move toward profitability and attract new investment capital," he said.

Enova has hired Merrill Lynch as investment advisors as it looks to further expand its operations and market opportunities in the emerging alternative energy market. Merrill Lynch possesses recognized expertise in the energy technology sector. Key highlights listed in Enova's Form 10-Q filing include:

-- A strategic development and marketing alliance with Capstone Turbine for the
development and supply of hybrid electric vehicle drive systems incorporating
Enova's technologies;

-- Continued development of an electric airport tram system for the Honolulu,
Hawaii Airport;

-- Continued alliance with Hyundai Heavy Industries; and

-- Sales of Enova Fuel Cells Management Systems to IFC, the fuel cell
subsidiary of United Technologies.

Enova is also an active participant in events sponsored by major industry groups (Electric Vehicle Association of America), investment banks (Merrill Lynch, Credit Suisse) and government agencies (U.S. Departments of Transportation and Energy, California Fuel Cell Partnership). The company is working to obtain a full Nasdaq listing in the latter half of 2001.

About Enova Systems

Enova Systems, with headquarters in Torrance and offices in Hawaii and South Korea, is a leading designer, developer and manufacturer of electric, hybrid-electric and fuel cell propulsion systems and components for the global vehicle market. The company's technology and products in power conversion, energy management and system integration enable Enova Systems to integrate a wide range of power sources, including advanced batteries, fuel cells and turbine generators, in mobile and stationary source applications.

The company's product lines include the Panther(TM) propulsion systems ranging from 10kW to 120kW, accessory power supplies for electric power steering and air conditioning, DC-DC supplies for low-voltage accessories and battery management products. Enova's propulsion systems and components are used for OEM vehicles from Hyundai Motor Co. and are supplied to Ecostar for use in the Ford Th!nk city vehicle. Enova also develops propulsion systems for medium- and transit-sized buses and airport trams.

This news release contains forward-looking statements relating to Enova Systems and its products. These forward-looking statements are subject to and qualified by certain risks and uncertainties. Such statements do not imply the future success of the company or its products. These risks and uncertainties are detailed from time to time in Enova Systems' filings with the Securities and Exchange Commission under the name Enova Systems Inc.