2008 Highlights in Review - 2009 The Year Ahead



    MISSISSAUGA, ON, Jan. 22 /CNW/ - Hy-Drive Technologies Ltd. ("Hy-Drive")
enters 2009 better positioned organizationally, financially and
technologically than just one year ago.

    
    2008 - Highlights in Review
    ---------------------------

    -   HGS units demonstrated threefold improvement in Mean Time Before
        Failure ("MTBF") during internal testing
    -   Third party validation tests demonstrated fuel performance
        improvement in excess of 20% on 5.9 - 7.3 litre test engines
    -   New President & CEO
    -   New Vice President & CFO
    -   Reduced staff headcount by over one-third
    -   Reduced number of consultants by ten
    -   De-layered organization and eliminated two Vice President positions
    -   Restructured all operating functions to report directly to the
        President
    -   Reduced the Board of Directors and Board Committees by 50%
    -   Reduced SG&A Expenses (YTD 9/30/08 vs. YTD 9/30/07) from $4.9M to
        $2.2M
    -   Substantially reduced total monthly financial "burn rate" (YTD
        9/30/08 vs. YTD 9/30/07) by over 50%
    -   Implemented stringent testing processes of internal components and
        completed Hydrogen Generating System ("HGS") units
    -   Non-binding Memorandum of Understanding ("MOU") signed with
        technology partner to enhance HGS performance
    -   Paused international roll-out in favour of local testing and trials
    -   Discontinued contract with Bristol Investor Relations effective
        12/31/08

    2009 - The Year Ahead
    ---------------------

    In the first few months

    -   Commenced dynamometer testing of latest HGS units on initial Class 8
        engines
    -   Continued rigorous in-house reliability testing of internal
        components and assembled HGS units
    -   Latest HGS unit performance testing to begin on Class 8 highway
        trucks early February
    -   Definitive Agreement with technology partner scheduled to be
        completed by end of February
    -   Pursuing Federal and Provincial research and development programs

    Plans for the balance of the year

    -   Continue development and testing of additional brands of Class 8 size
        engines
    -   Continue third party testing and evaluation
    -   Pursue product evaluation by Transport Canada
    -   Stage increased selective product roll-out
    -   Continue to focus on cost containment in all areas
    -   Move towards commercialization
    

    Outlook

    "Thanks to the dedication and talent of our staff, the support of our
suppliers and all stakeholders, considerable technology gains were made
possible through 2008. Much remains to be done at Hy-Drive; however, we enter
2009 with invigorated commitment," stated Hugo Sorensen, President & CEO of
Hy-Drive. "Our company has in the past been tested by numerous challenges.
Logically we anticipate there will be future obstacles; however, at Hy-Drive
we will continue our focused and cautious drive towards product
commercialization."

    
    About Hy-Drive
    --------------
    Hy-Drive's market strategy is to provide a technological solution that
delivers both fuel savings and emission reduction for the company's principal
market - Class 8 on-highway trucks. The Hydrogen Generating System ("HGS")
provides additive amounts of on-vehicle generated hydrogen, which is intended
to enhance overall engine performance when injected pre-combustion into the
engine.
    For more information, please visit www.hy-drive.com.

    Cautionary Note Regarding Forward-Looking Information
    -----------------------------------------------------
    
    This news release contains "forward-looking information" within the
meaning of applicable Canadian securities legislation. Forward-looking
information includes, but is not limited to, information concerning Hy-Drive's
HGS technology, efforts to increase product reliability and the proposed
business transaction and possible related benefits, product testing,
development and commercialization as well as Hy-Drive's business strategy.
Generally, forward-looking information can be identified by the use of
forward-looking terminology such as "plans", "expects", or "does not expect",
"is expected", "budget", "scheduled", "estimates", "forecasts", "intends",
"anticipates", or "does not anticipate", or "believes" or variations of such
words and phrases or statements that certain actions, events or results "may",
"could", "would", "might", or "will be taken", "occur", or "be achieved".
Forward-looking information is based on the opinions and estimates of
management at the date the information is made, and is based on a number of
assumptions and subject to a variety of risks and uncertainties and other
factors that could cause actual events or results to differ materially from
those projected in the forward-looking information. Many of these assumptions
are based on factors and events that are not within the control of Hy-Drive
and there is no assurance they will prove to be correct. Factors that could
cause actual results to vary materially from results anticipated by such
forward-looking information include completion of a definitive agreement with
the vendor of the IP Assets and receipt of all requisite approvals as well as
those risk factors discussed in Hy-Drive's Management's Discussion and
Analysis for the period ended June 30, 2008 at www.sedar.com. Although
Hy-Drive has attempted to identify important factors that could cause actual
actions, events or results to differ materially from those described in
forward-looking information, there may be other factors that cause actions,
events or results not to be anticipated, estimated or intended. There can be
no assurance that forward-looking information will prove to be accurate, as
actual results and future events could differ materially from those
anticipated in such information. Hy-Drive undertakes no obligation to update
forward-looking information if circumstances or management's estimates or
opinions should change except as required by applicable securities laws. The
reader is cautioned not to place undue reliance on forward-looking
information.

    
    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.
    





For further information:

For further information: Hugo T. Sorensen, President & CEO, Hy-Drive
Technologies Ltd., Tel: (905) 542-3024, ext. 222, hsorensen@hy-drive.com; Fred
M. Florence, Vice President & CFO, Hy-Drive Technologies Ltd., Tel: (905)
542-3024 ext. 257, fflorence@hy-drive.com

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HY-DRIVE TECHNOLOGIES LTD.

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