HyPower Fuel Announces Spin-Out Option and Possible Future Dividend

   HyPower Fuel Inc. (PINK SHEETS: HYPF) -

HyPower is pleased to report that its two Target Companies (TC's) have both expereesed a strong interest in making use of HyPower's strength to grow quickly, show financial results and then be Spun Out as separate public entities trading on recognized exchanges, higher than Pinksheets OTC. Mr. Douglas Bender, CEO of HyPower, commented that "this is not something we had anticipated, but if the TC's can achieve the revenues and growth that their initial projections suggest, this is a very viable option which will maximize returns for both the TC's and for HyPower. HyPower shareholders could receive a special dividend giving them a direct shareholding in the TC's in some manner."

Mr. Bender went on to reiterate that "we continue to assist the TC's in developing their revenue projections and will be providing details on this in the near future."

About HyPower Fuel Inc.

HyPower is a category leading company in the energy technology sector, providing innovative, clean alternative energies through unique methods. Currently HyPower has hydrogen insertion/production and biodiesel technologies in development and/or in the product commercialization stage. For more information please visit: www.hypowerfuel.com and/or contact us at: [e-mail].

Safe Harbor - This press release shall not constitute an offer to sell or a solicitation of an offer to buy securities of HyPower Fuel Inc. Certain statements in this release and other written or oral statements made by or on behalf of the Company are "forward looking statements" within the meaning of the federal securities laws. Statements regarding future events and developments and our future performance, as well as management's expectations, beliefs, plans, estimates or projections relating to the future are forward-looking statements within the meaning of these laws. The actual results achieved may differ materially from any forward-looking statements due to these risks and uncertainties. These statements are based on our current expectations and speak only as of the date of such statements.

Contacts: Newstrack Communications [phone]