Dynamotive Progresses Biofuel Plants During 2nd Quarter.

Plant and Business Development Activities Advance

VANCOUVER, British Columbia -- Dynamotive Energy Systems Corporation (OTCBB:DYMTF) announced today that its net loss for the second quarter ended June 30, 2007, was $3.5 million, or $0.02 per share, compared with a net loss of $3.8 million, or $0.02 per share, for the same period a year ago. The lower overall loss represents more activity in almost all business areas, partially offset by lower non-cash charges.

"During the second quarter and since it ended June 30th, the Company continued to make significant progress as we ready our new modular 200 tonne-per-day Guelph, Ontario, BioOil([R]) biofuel plant for full operation," commented Andrew Kingston, Dynamotive's president and chief executive officer. "Recent business developments which will help pave the way for the company's future growth include reaching a letter of agreement with Mitsubishi Corporation  and deepening our relationship with the Consensus Business Group through the merger of a jointly held affiliate into Dynamotive."

"Initial revenue from the Guelph plant and the expanded West Lorne operation will commence in the near future, and our business development position will improve significantly as we enter operating status," Mr. Kingston noted. "As we approach operating status at these two plants, international interest is growing, with advanced development activities in Europe and South America, and accelerating project development activity occurring in the United States."

Concluding his remarks, Mr. Kingston said: "With the continued volatility and insecurity of world energy markets and ever greater attention being paid to environmental issues, Dynamotive is also well positioned to be a leader in the Biomass to BioOil sector of the alternative energy market."

Recent Dynamotive Highlights:

* Signed a detailed Letter of Agreement with Mitsubishi Corporation to explore expanded relationships

* Consensus Business Group converted their biomass JV interest into Dynamotive equity and appointed a director to Dynamotive's Board

* Development of up to six plants in Corrientes, Argentina, continues

* Commissioning and permitting of first 200 tonne-per-day (TPD) plant at Guelph, Ontario, nears completion

* West Lorne expansion nearing mechanical completion, commissioning to begin late next month

* Initiated tests in Iowa to use Dynamotive's biochar for soil enrichment and crop productivity enhancement

Summary Financial results are presented as follows:

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About Dynamotive

Dynamotive Energy Systems Corporation is an energy solutions provider headquartered in Vancouver, Canada, with offices in the USA, UK and Argentina. Its carbon/greenhouse-gas-neutral fast pyrolysis technology uses medium temperatures and oxygen-free conditions to turn dry, waste cellulosic biomass into BioOil([R]) for power and heat generation. BioOil([R]) can be further converted into vehicle fuels and chemicals. The final stages of the commissioning process at the Guelph plant and the reconstruction of the West Lorne plant may be seen by viewing photographs regularly posted on the company's website at www.dynamotive.com.

Forward-Looking Statement 

Statements in this news release concerning the company's business outlook or future economic performance, including the anticipation of future plant start-ups, partnerships, consortiums, teaming agreements, government assistance, other anticipated cash receipts, revenues, expenses, or other financial items, and statements concerning assumptions made or expectations as to any future events, conditions, performance or other matters, are "forward-looking statements." Forward-looking statements are by their nature subject to risks, uncertainties and other factors which could cause actual results to differ materially from those stored in such statements. Such risks, uncertainties and factors include, but are not limited to, changes in energy prices, availability of capital, and the Company's ability to access capital on acceptable terms or any terms at all, changes and delays in project development plans and schedules, customer and partner acceptance of new projects, changes in input pricing, competing alternative energy technologies, government policies and general economic conditions. These risks are generally outlined in the Company's disclosure filings with the Securities and Exchange Commission.