Enova Trading Update

TORRANCE, Calif.--(BUSINESS WIRE)--Enova Systems, (AMEX:ENA) (AIM:ENV) (AIM:ENVS), an early stage production company in an emerging industry and a leading developer of proprietary electric, hybrid and fuel cell digital power management systems, announces today an update to its trading prospects.

On announcing its 2nd Quarter Results on 11 August 2006, Enova stated that customer relationships had moved more slowly than originally anticipated and that the revenue outlook for 2006 would depend on securing a number of orders during the third quarter, for which proposals had recently been submitted, as well as securing further orders. Enova subsequently announced a contract with a major North American fleet operator.

Enova is pleased to report that it is maintaining its leading position and developing relationships in segments such as in the School Bus, Commercial Bus, Commercial Truck, Electric Vehicle, Fleet Operations and Delivery markets. Enova is working with major companies (either as customers or in the evaluation phase) within each of these segments. However, these relationships have continued to translate into orders more slowly than originally anticipated. In addition, where orders have been secured, certain customers, including customers under the Advanced Energy award announced in July 2006, are not requiring delivery of the products be made in 2006 calendar year. These factors combined will have a substantial impact on anticipated revenues for 2006.

Enova believes that interest in hybrid-electric and electric technologies in its target markets is continuing to increase, driven by both economic and emission factors, and Enova continues to receive positive feedback from its customers and potential customers. Enova believes it is well positioned to benefit from market growth which is taking place more slowly than originally anticipated.

About Enova:

Enova Systems ( http://www.enovasystems.com ) is a leading supplier of efficient, environmentally friendly digital power components and systems products. The Company ' s core competencies are focused on the development and commercialization of power management and conversion systems for mobile applications. Enova applies unique ' enabling technologies ' in the areas of alternative energy propulsion systems for light and heavy-duty vehicles as well as power conditioning and management systems for distributed generation systems. The Company develops, designs and produces non-invasive drive systems and related components for electric, hybrid-electric, and fuel cell powered vehicles in both the " new " and " retrofit " vehicle sales market. For further information, contact Enova Systems directly, or visit its Web site at http://www.enovasystems.com .

This news release contains forward-looking statements relating to Enova Systems and its products that are intended to be covered by the safe harbor for forward-looking statements provided by the Private Securities Litigation Reform Act of 1995. Forward-looking statements are statements that are not historical facts. These statements can be identified by the use of forward-looking terminology such as " believe, " " expect, " " may, " " will, " " should, " " could, " " project, " " plan, " " seek, " " intend, " or " anticipate " or the negative thereof or comparable terminology and statements about industry trends and Enova ' s future performance, operations and products. These forward-looking statements are subject to and qualified by certain risks and uncertainties. These and other risks and uncertainties are detailed from time to time in Enova Systems ' periodic filings with the Securities and Exchange Commission, including but not limited to Enova ' s annual report on Form 10-K for the year ended December 31, 2005. This forward-looking information should be considered only in connection with the aforementioned risk factors. Enova assumes no obligation to update such forward-looking statements.