HyPower Negotiates First Canadian Franchise.

WILMINGTON, Del. -- HyPower Fuel, Inc. (PINKSHEETS: HYPF) is pleased to announce that they have received an offer from New Wave Innovations, Inc. for their franchising opportunities generated by its Installation Service and Warranty (ISW) Program.

"We are proud to announce that we have received a very strong offer and commitment from New Wave Innovations Inc. for the ISW franchise rights to the bulk of the Canadian north country, excluding the Yukon," said Mr. Doug Bender, President of HyPower Fuel, Inc. "We have been working with Mr. Al Magneson, President of New Wave, for some time now and he has been traveling extensively in the north to generate interest in our Hydro Power Pak, mostly for use with stationary diesel engines," added Mr. Bender.

"We have been servicing northern communities for a long time and we know of the high cost of living and conducting business in this part of the world, so we are excited about representing HyPower and a product like the Hydro Power Pak," said Mr. Magneson, President of New Wave Innovations, Inc. "Power generation in northern communities comes from on-site stationary diesel generators and the Hydro Power Pak will significantly reduce their fuel usage, which in many cases represents 40% of their overall operating costs."

About the Hydro Power Pack (HPP)

The HPP is a retrofit hydrogen insertion device developed for use on tractor trailer rigs as well as stationary diesel engines to improve fuel economy, reduce harmful emissions and increase engine performance and horsepower. Although the HPP does not eliminate the need for gasoline, diesel or other fuels it does provide the onboard production of hydrogen that supplements the primary fuel source. HyPower believes the HPP is more efficient than any existing form of electrolysis-based hydrogen production/insertion technology. The HPP is a transition technology paving the way for future retrofit hydrogen production technologies that will allow engines to be fueled totally with hydrogen produced on board, on demand.

About HyPower Fuel, Inc.

HyPower Fuel, Inc. is a category leading company in the energy technology sector, focusing on providing innovative alternative energy through hydrogen production and hydrogen related products. HyPower has successfully commercialized the integration of hydrogen production and hydrogen insertion technologies using electrolysis to improve the overall performance and efficiency of the internal combustion engine while burning gasoline, diesel, natural gas, liquid propane, ethanol, methanol or a combination of fossil fuels and biofuels. HyPower's signature product, the Hydro Power Pak (HPP), has demonstrated a significant impact on the performance of engines while at the same time increasing fuel economy, significantly reducing harmful emissions, inducing a cleaner more efficient burn, and increasing torque and horsepower. The HPP results in greater productivity, less carbon residue and sludge build-up and overall increased operating efficiency. HyPower is also engaged in the research and development of hydrogen production technology and biofuel products.

For more information please contact Investor Relations at [phone] or visit: www.hypowerfuel.com.

Safe Harbor Statement

Statements about the Company's future expectations and all other statements in this press release other than historical facts, are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and as that term is defined in the Private Securities Litigation Reform Act of 1995. The Company intends that such forward-looking statements be subject to the safe harbors created thereby. The above information contains information relating to the Company that is based on the beliefs of the Company and/or its management as well as assumptions made by and information currently available to the Company or its management. When used in this document, the words "anticipate," "estimate," "expect," "intend," "plans," "projects," and similar expressions, as they relate to the Company or its management, are intended to identify forward-looking statements. Such statements reflect the current view of the Company regarding future events and are subject to certain risks, uncertainties and assumptions, including the risks and uncertainties noted. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove to be incorrect, actual results may vary materially from those described herein as anticipated, believed, estimated, expected, intended or projected. In each instance, forward-looking information should be considered in light of the accompanying meaningful cautionary statements herein. Factors that could cause results to differ include, but are not limited to, successful performance of internal plans, the impact of competitive services and pricing and general economic risks and uncertainties.