Hy-Drive Expands into Blutip Power

Products Deliver Emissions Reduction with Fuel Savings

MISSISSAUGA, ON, Dec. 16 /PRNewswire/ - Hy-Drive Technologies Ltd., the Mississauga based alternate combustion fuels technology company will soon launch Blutip Power Technologies, positioning the company's capabilities and products to do much more when it comes to greening our planet. This will allow for exciting product expansion into a much larger market.

Hy-Drive developed and established the Hydrogen Generating System (HGS) for the North American trucking industry. The advanced as-used hydrogen generation, multi-fuel combustion control and safety interlock mechanism, has gone through extensive S.A.E testing with impressive results that lower fuel consumption and reduce harmful emissions at the same time. Becoming Blutip Power Technologies means the company will now target diesel emissions reduction with fuel economy products and services for the rapidly expanding sustainable energy and clean technology based markets.

"We are still going to distribute and market as an HGS fuel savings company for highway trucks; but by expanding into emissions, we won't limit the opportunity, we will expand market channels, acquiring profitable business via much greater coverage with an expanded number of new and re-aligned products and services. We are very excited about the future," said Robert Bucher, the newly appointed President and CEO.

Blutip Power will continue to focus on maximizing diesel combustion; however their product list will expand to include advanced multi-fuel combustion controls, smart telematics and a high precision, low cost, mobile command, control and monitoring solution. On the services side they intend to develop software, conduct engine combustion economy and emissions analysis, offer lab services, provide environmental packaging, as well as special program prototyping. All products and services will be available to customers around the world.

"Very few companies are positioned to meet the needs of the green sustainable energy movement the way we are. We have 15 years of multi-fuel combustion product design, testing and application knowledge behind us, and now that the trucking industry, mining industry, marine, power generation and the public transit industries; to name a few, are now focused on diesel engine emissions reduction, we plan to align ourselves with this exciting and expanding market," stated Bucher.

Over the next 12 months Blutip Power plans to start conducting automated impact studies, develop the telematics package and service, and move forward with HGS product sales. The company is currently looking to establish alternate distributors for the HGS units globally.

With the added support from suppliers, operators and academic institutions, Blutip Power expects to be a big part of the largest movement to hit our planet…the Green Movement.

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). For more information, please visit www.hy-drive.com.

Forward Looking Information 

This press release contains "forward-looking information" within the meaning of applicable securities laws. Forward-looking information includes but is not limited to information concerning Hy-Drive's strategies, product development, market focus, financial performance and future prospects. Generally, forward-looking information 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", "understands" or "does not anticipate", or "believes" or variations of such words and phrases or statements that certain actions, events or results "will", "may", "could", "would", "might", or "will be taken", "occur", or "be achieved". Forward-looking information is based on the views, opinions, intentions and estimates of management at the date the information is made, and is based on a number of assumptions and subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those anticipated or projected in the forward-looking information (including the actions of other parties who have agreed to do certain things and the approval of certain regulatory bodies).

Many of these assumptions are based on factors and events that are not within the control of Hy-Drive and there is no assurance they will prove to be correct. Factors that could cause actual results or events to vary materially from results or events anticipated by such forward-looking information include future working capital requirements, the ability to develop products on an economic basis, product validation, factors relating to the marketing, development and commercialization of Hy-Drive existing and prospective product lines, regulatory approvals and requirements, changes in foreign exchange and interest rates, government regulation, environmental risks, capital expenditures, intellectual property, operating or technical difficulties, risks associated with the emissions and fuel combustion industries such as economic factors (including fuel costs), failure of processes to operate as anticipated, dependence on key personnel, employee relations and availability of equipment and skilled personnel, actual results of current R&D activities, development timelines, risks associated with the emissions and fuel combustion industries, changes in project parameters as plans continue to be refined as well as those risk factors discussed in the management's discussion and analysis for the period ended September 30, 2010, which risks may cause actual results to differ materially from any forward-looking information.

Although Hy-Drive has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or results not to be anticipated, estimated or intended. There can be no assurance that forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Hy-Drive undertakes no obligation to update forward-looking information if circumstances or management's estimates or opinions should change except as required by applicable securities laws, or to comment on analyses, expectations or statements made by third parties in respect of Hy-Drive, its financial or operating results or its securities. The reader is cautioned not to place undue reliance on forward-looking information.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

SOURCE Hy-Drive Technologies Ltd.