Hy-Drive Acquires Clean Technology Controller Platform Paving Way for Rapid Product Roll Out

MISSISSAUGA, ON, Jan. 26 /PRNewswire-FirstCall/ - Hy-Drive Technologies Ltd. ("Hy-Drive") (TSXV: HGS) today announced it has completed their agreement with I.C.E. Fuel Technologies Ltd. ("ICE") under which Hy-Drive acquired the Intellectual Property ("IP") assets to the multi-fuel combustion controller paving the way for global expansion into multiple diesel emissions and fuel economy applications and markets through the rapid addition of engine platforms. Acquiring the controller platform IP and combining it with its internally developed toolset and telematics product is an exciting move for Hy-Drive as it gives them the ability to build-on and strengthen a technology offering that has already drawn proven results.

Hy-Drive has created an alternate energy based combustion controller for diesel, transport and power generation engines that has already passed extensive S.A.E. testing protocols. As reported earlier this month, Hy-Drive signed agreements with WorldKlass Technologies for power generation and Greencell Technologies Inc. for truck transport to rapidly expand distribution, reducing harmful gas emissions while improving fuel economy. 

"Completing the project with ICE and internalizing the IP is an important step to streamlining the development process as we move more towards the greening benefits our technology can potentially offer", said Hy-Drive President and CEO Robert Bucher.  "Emission rules are being set and fuel continues to rapidly increase in costs.  Hy-Drive now has the platform to assist industry in solving these problems", he added.

In the fall of 2009 Hy-Drive entered into an agreement with ICE to develop and acquire Intellectual Property Assets towards the enhancements to their Hydrogen Generating System. This agreement has come to a conclusion and the new deal signals a move into a broader marketplace for Hy-Drive. 

Pursuant to the terms of the original agreement, the Company issued Common Shares and Common Share Purchase Warrants ("Warrants") of 1,586,000 each. The Warrants are issued as follows: 951,600 Warrants at $4.50 per share, 475,800 Warrants at $5.00 per share, and 158,600 at $8.00.  The $4.50 Warrants expire two (2) years after their issue date and the $5.00 and $8.00 Warrants expire five (5) years after their issue date.  All shares and warrants are subject to trading restrictions and all prescribed regulatory hold periods.

About Hy-Drive

Hy-Drive is a technology company headquartered in Mississauga, Ontario, Canada. The Company has invested in the research and development of hydrogen and control technology resulting in a proprietary, patented and patent-pending hydrogen generating system ("HGS®") and advancement in multi-fuel universal combustion controls. Hy-Drive's HGS enriches the fuel-air charge of an internal combustion engine with hydrogen produced through electrolysis and uses its proprietary software controls to improve combustion of the fuel-air mixture. The result is improved fuel economy and reduced opacity (particulates).

Cautionary Note Regarding Forward-Looking Statements:

This press release contains certain forward-looking statements that are based upon current expectations, which involve risks and uncertainties associated with the Company's business, and the economic environment in which the business operates. Forward-looking statements contained in this press release that are not statements of historical fact may be deemed to be forward-looking statements including but not limited to, statements about future development of Hy-Drive's products, commercial production in 2011, future working capital requirements, and validation of Hy-Drive's products, and can be identified by the use of forward-looking terminology such as "plans", "expects", or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", or "does not anticipate", "thinks", or "believes" or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might", or "will be taken", "occur", or "be achieved" and similar expressions to the extent that they relate to the Company or its management. These forward-looking statements are not historical facts, but reflect the Company's current expectations regarding future results or events. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations, including the matters discussed in the section "Risks and Uncertainties" below.

Although Hy-Drive has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information.  Hy-Drive does not undertake to update any forward-looking information that is incorporated by reference herein, except in accordance with applicable securities laws.

The TSX Venture Exchange has in no way passed upon the merits of the proposed transaction and has neither approved nor disapproved the contents of this press release. The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

SOURCE Hy-Drive Technologies Ltd.