HyPower to Begin Testing on Ford Engine.

WILMINGTON, Del. -- HyPower Fuel, Inc. (PINKSHEETS: HYPF) is pleased to announce that it will commence testing on a Ford Motor Company (NYSE: F) gasoline engine with its newly developed high efficiency H2 Reactor. "We chose the Ford Fusion vehicle for this series of testing because we believe that it should operate well with the introduction of hydrogen as a hybrid power source and possibly even as a sole power source" explained Mr. Douglas Bender, President of HyPower Fuel, Inc. "This testing program follows on the heels of the Volkswagen engine testing we previously conducted" Mr. Bender added.

The Company is currently running preliminary tests and will soon be establishing a baseline for this Ford engine. Testing will begin in early 2007. Upon successful completion of the test program the Company will be preparing a live webcast to demonstrate the use of the H2 Reactor in conjunction with this vehicle as well as the Volkswagen Rabbit GTI.

About the H2 Reactor (H2R)

The H2 Reactor is an electrolyzer that uses a unique process of electrolysis to create hydrogen and oxygen gases from water. After extensive technical research and development work with its joint venture partner, HyPower believes that the H2 Reactor's electrolysis process is technologically the most efficient to date with an unprecedented ratio of 1 liter of hydrogen production to an electrical input of 1 watt hour. This is approximately 2 to 2.5 times more efficient than the current state of the competing technology.

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.