Hy-Drive Technologies announces financial results for three and six month periods ended June 30, 2008



    Focus on Product Reliability, Product Performance and Third Party Product
    Verification Continues

    Reduction in Quarterly Losses Highlights the Results of the Company's
    Cost Containment Initiatives

    TSX Venture Exchange symbol: HGS

    MISSISSAUGA, ON, Aug. 6 /CNW/ - Hy-Drive Technologies Ltd. ("Hy-Drive")
(TSX-V: HGS) today announced its financial results for the three and six month
periods ended June 30, 2008. This release also covers Financial Statements for
the Company and an accompanying MDA released earlier at www.sedar.com.

    
    Highlights for the three and six month periods ended June 30, 2008

                  Three month period ended      Six month period ended
                  June 30, 2008  June 30, 2007  June 30, 2008  June 30, 2007
                  -----------------------------------------------------------

    Revenues      $           -  $           -  $           -  $      98,743
    Cost of sales             -              -              -         47,470
                  -----------------------------------------------------------
    Gross profit              -              -              -         51,273
    Expenses      $   1,868,680  $   7,363,568  $   3,612,523  $   9,623,932
    Interest and
     other income       105,240        197,094        318,759        439,258
                  -----------------------------------------------------------
    Net loss      $  (1,763,440) $  (7,166,474) $  (3,293,764) $  (9,133,401)
                  -----------------------------------------------------------
                  -----------------------------------------------------------
    Basic and
     diluted loss
     per share    $       (0.03) $       (0.12) $       (0.05) $       (0.15)
                  -----------------------------------------------------------


    -   The Company reports a net loss of $1,763,440 ($0.03 per share) for
        the three month period ended June 30, 2008 compared to a net loss of
        $7,166,474 ($0.12 per share) for the three month period ended
        June 30, 2007. The Company reports a net loss of $3,293,764
        ($0.05 per share) for the six month period ended June 30, 2008
        compared to a net loss of $9,133,401 ($0.15 per share) for the six
        month period ended June 30, 2007.

    -   Total cash and short-term investments used in operating activities
        was $1,329,552 for the three month period ended June 30, 2008
        compared to $3,502,408 for the three month period ended
        June 30, 2007. The Company implemented a series of cash conservation
        initiatives during the second half of 2007 and the first quarter of
        2008, including controls over production and inventory, capital
        expenditures, marketing initiatives, and general and administrative
        expenditures. These positive initiatives effected a significant
        reduction in the monthly operating costs of the Company.

    -   The Company continues to focus on reliability and performance
        improvements of its Hydrogen Generating System (HGS). The newest
        generation of the HGS system is in the final stages of development
        with reliability testing planned to be completed during 2008.
        Internal quality control and performance testing continues. Third
        party efficacy performance verification is planned to continue
        through the remainder of 2008.

    -   The Company reports cash and cash equivalents and short-term
        investments of $12,222,994 as at June 30, 2008, $13,689,870 as at
        March 31, 2008, compared to $15,601,987 as at December 31, 2007; a
        reduction of $1,466,876 during the three month period ended
        June 30, 2008 and a reduction of $3,378,993 during the six month
        period ended June 30, 2008.

    -   Throughout the second quarter, the Company has continued to test and
        third party validate HGS unit efficacy. Hy-Drive expects to release
        these third party validation results during the third quarter.
    

    About Hy-Drive

    MISSION: The mission of Hy-Drive Technologies Ltd. is to increase the
efficiency in which society utilizes non-renewable energy resources. With a
strong commitment to safety, the environment and employee empowerment, it is
the common goal of our employees to deliver a reliable and effective product
to maximize the profit of customers and shareholders alike. For more
information, please 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.

    %SEDAR: 00016984E




For further information:

For further information: Hugo T. Sorensen, President and CEO, Hy-Drive
Technologies Ltd., Tel: (905) 542-3024, ext. 222, hsorensen@hy-drive.com;
Thomas H. Wallace, Vice-President & CFO, Hy-Drive Technologies Ltd., Tel:
(905) 542-3024 ext. 257, twallace@hy-drive.com

Organization Profile

HY-DRIVE TECHNOLOGIES LTD.

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