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href="http://www.actonsoftware.com/acton/ct/1523/s-010f-1205/Bct/l-0002/l-0002:15bcd/ct1_0/1"><img alt="Dynamic Fuel Systems Inc. (TSX-V: DYA)" src="http://www.infostockbiz.com/images/DYA_logo.jpg" width="700" height="118" border="0" /></a> <font face="arial, verdana" size="2"><font face="arial, verdana" size="2"> <br /><br /> <font size="3"></font></font></font><center><span style="font-size: 11pt;"><b> Dynamic Announces Hydragen(TM) California Air Resource Board Executive Order </b></span></center>
<p align="left"><b>Dynamic Fuel Systems Inc. (TSX Venture Exchange: <a
id="ct2_0"
href="http://www.actonsoftware.com/acton/ct/1523/s-010f-1205/Bct/l-0002/l-0002:15bcd/ct2_0/1">DYA</a>)</b> is pleased to announce that it has received the California Air Resources Board (CARB) Executive Order D-697 signifying that its HydraGen™ hydrogen generating device has received an exemption in accordance with Section 27156 of the California Vehicle Code.</p>
<p>The Executive Order permits the advertising, sales and installation of the HydraGen™ hydrogen generator. It was Ordered and Resolved that the HydraGen™ hydrogen generating device has been found not to reduce the effectiveness of the applicable vehicle pollution control systems for all 1998 to 2002 model year (MY) 12.7 Litre Detroit Diesel Heavy Duty Diesel Engines.</p>
<p>Section 27156 of the VC deals with matters pertaining to Gross Polluter, Air Pollution Control Devices and more particularly the requirements that all such devices do not modify, override or otherwise affect the durability of existing vehicle pollution control systems.</p>
<p>This Executive Order is based on emission test results using the Heavy-Duty Federal Test Procedure (FTP), Transient Cycle Test, Euro III European Stationary Cycle (ESC) test, and "Not to Exceed" test submitted by Dynamic Fuel Systems Inc with the HydraGen™ hydrogen generating device.</p>
<p>A summary of the test results is provided at the end of this News Release and a copy will be provided on the Corporation's website for future references.</p>
<p>"This is a very important milestone for Dynamic and its shareholders. It represents the culmination of a great deal of effort from a small but dedicated team" stated Jim Payne, CEO of Dynamic. This result opens up new opportunities for the HydraGen™ in markets beyond California as well", added Payne.</p>
<p>"Obtaining this Executive Order has proven an invaluable experience for our team" stated Grove Bennett, President of Dynamic. The California ARB represents the gold standard by which products are evaluated and to the best of my knowledge, Dynamic and the HydraGen™, is the first Canadian hydrogen generating company and device that has received an Executive Order such as this. The experience gained in this process will help tremendously with our planning for exemption status on other heavy duty vehicle engines," added Bennett.</p>
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<p><strong>About Dynamic Fuel Systems Inc.</strong></p>
<p>Dynamic Fuel Systems Inc. is an Oshawa, Ontario, Canada-based energy Sector Company engaged in the sales & marketing, manufacture, distribution, installation and support of a transportable hydrogen generator aftermarket product targeted for use in the heavy tractor trailer industry.</p>
<p><i>This release includes forward looking statements, which are based on certain assumptions and reflects management's current expectations. 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. Some of these factors include: general global economic conditions; general industry and market conditions and growth rates; uncertainty as to whether our strategies and business plans will yield the expected benefits; increasing competition; availability and cost of capital; the ability to identify and develop and achieve commercial success for new products and technologies; the level of expenditures necessary to maintain and improve the quality of products and services; changes in technology; changes in laws and regulations, includes codes and standards, intellectual property rights, and tax matters; the uncertainty of the emerging hydrogen economy; including the hydrogen economy moving at a pace not anticipated; our ability to secure and maintain strategic relationships and distribution agreements. </i><strong><i>Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of the release.</i></strong></p>
<pre>CONTACT: Mr. Grove Bennett
President & Corporate Secretary
Dynamic Fuel Systems Inc.
1288 Ritson Road Nth, Suite 385
Oshawa, Ontario L1G 8B2
905-831-2440 x 613
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