Hy-Drive Technologies Ltd. (TSX-V:HGS), the leading provider of patented hydrogen generating systems that enhance the combustion process to allow fuel to burn more efficiently and completely, has announced that Pollywog Transport of Palmetto, Florida will install its system on 36 refrigerated trucks within its fleet, effective immediately.


Pollywog has been conducting over-the-road test programs for the past several months using PeopleNet's on-board web based performance monitoring system that allowed the company to monitor vehicles equipped with the Hy-Drive technology and to demonstrate the performance advantages.


"We are very pleased to announce to our shareholders our next fleet order for the HGS from Florida's Pollywog," stated Tom Brown, President and CEO of Hy-Drive. "This order came as a direct result of our risk free Conditional Purchase program which we launched earlier this year with our G2 HGS. In addition to its revenue implications the order is extremely significant because we were able to demonstrate the benefits of our system to Pollywog under a very extensive testing and monitoring process. This process and the data collected will certainly enhance our credibility and reference base to win future business from other fleet carriers currently undergoing similar Conditional Purchase testing. Their ability to track truck performance using the PeopleNet system gives us a chance to prove what our various prior sets of anecdotal results have been proving for years. The facts speak for themselves."


"Fuel now represents the largest out-of-pocket expense in our fleet, prior to which, labor was our single greatest expense," says Steve Teeple, president and founder of Pollywog. "We just couldn't sit idly by and watch the prices go up so we decided we had to look for a solution. We looked at many different ideas that promised us fuel savings. Hy-Drive was the only company that delivered what they promised."


Teeple equipped six of his Freightliners, powered by the Detroit Diesel Series 60 engine with 430-470 hp ratings, with the hydrogen generating system which introduces small amounts of hydrogen gas, on-demand, into the combustion chamber of a regular diesel engine. Hydrogen acts as an ignition catalyst delivering an enriched air-fuel mixture that leads to a more complete and faster burn of the diesel fuel.


The translation is improved fuel economy, lower emissions, and improved power. In side-by-side operations, Pollywog units have achieved up to a minimum of 0.81 mpg improvement and the average has gone from 5.35 mpg to 6.7 mpg, which translates into $300 per week per unit.


"Our drivers just love the system," says Teeple. "They tell me that the engine is more responsive, as a result of the more complete burn which increases the horsepower and keeps engine lubricants clean."


In addition, because of the improved efficiency, these pre-2007 engines are meeting the more stringent emissions guidelines published by the Environmental Protection Agency. "It took us less than three months to see the results," says Teeple. "Our engines are running cooler and cleaner. We have seen a reduction of 74.5% in hydrocarbons and an 80% percent reduction in particulate matter."


In traditional diesel engines, diesel combusts successively around the carbon molecules, often leading to slow and incomplete burn of the fuel. The introduction of the charged hydrogen gas bonds to the diesel fuel, serving as a catalyst to excite the combustion and leading to a more complete and simultaneous transfer from the liquid potential into usable mechanical energy.


"These tests would have taken much longer without the information we were able to pull off our PeopleNet g3 platform," says Teeple. "Once we saw the results, we had little choice but to install the units in our fleet."


In previous extensive customer trials and tests, the Hy-Drive system has demonstrated significant performance enhancements, including reduced emissions, increased torque/horsepower, fuel savings and extended engine life. These benefits, specifically fuel economy and reduced emissions, provide fleets with greater productivity overall, as their engines operate more efficiently, with improved cycle times and less carbon build-up.


About Hy-Drive


Hy-Drive is an energy technology firm that has developed a proprietary, patented hydrogen generating system. The Hy-Drive system generates and injects hydrogen gas into a regular internal combustion engine, enhancing the combustion process by allowing fuel to burn more efficiently and completely. In previous extensive customer trials and tests, the Hy-Drive system has demonstrated significant performance enhancements, including reduced emissions, increased torque/horsepower, fuel savings and extended engine life. These benefits, specifically fuel economy and reduced emissions, provide customers with greater productivity overall, as their engines operate more efficiently, with improved cycle times and less carbon build-up. For further information, visit www.hy-drive.com.


Cautionary Note Regarding Forward-Looking Statements


Certain statements contained in this press release may constitute forward-looking statements. Such statements reflect Hy-Drive's current views with respect to future events and are subject to certain risks, uncertainties and assumptions. Many factors could cause Hy-Drive's actual results, performance or achievements to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements, including among other things, those which are discussed under the headings "Risk Factors" and elsewhere in documents that Hy-Drive files from time to time with securities regulatory authorities. Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking statements prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, believed, estimated or expected. Hy-Drive does not intend, and does not assume any obligation, to update these forward-looking statements.


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.


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For further information: Investor Relations: Glen Akselrod, Bristol Capital Ltd., Tel: (905) 326-1888, glen@bristolir.com or Tom Brown, Hy-Drive Technologies Ltd., Tel: (905) 542-3024, ext. 300, Email: tombrown@hy-drive.com