Xynergy Holdings Announces New Subsidiary, HydroFuels, Inc.

   Xynergy Holdings, Inc. (the "Company") (PINKSHEETS: XYNH). As previously released, Xynergy's management plans to use strategic acquisitions in order to expand its business portfolio. The recent acquisition of Simply Distribution, LLC demonstrates the Company's effort to create revenue generating opportunities while it continues to research and test its second generation hydrogen fuel cell technology. In light of this new direction, management has determined it to be in the best interests of Xynergy Holdings' shareholders to consolidate the assets and business of the hydrogen fuel cell technology into a new subsidiary called HydroFuel, Inc.

HydroFuel Inc. will continue researching, developing, and testing the on demand hydrogen cell on diesel engines to determine the technology's feasibility and commercial viability. The company is currently testing the second-generation cell on a Ford 7.3 Liter diesel engine and hopes to obtain results in the near future. CEO JC Ley comments, "The Company is expanding its operations and scope of business beyond energy solutions, as it will create a revenue based business poised for growth and development. We also believe that alternative fuels are the future, and while we continue researching, developing and testing our technology, we would also like to find revenue generating opportunities not only beyond the energy sector, but also explore those possibilities within the alternative energy sector itself." Ley continues, "Bottom line is that the company needs to generate revenues not only to fund our various projects, but also to build shareholder value."

About Xynergy Holdings, Inc.

Xynergy Holdings, Inc. is committed to meeting the world's growing energy needs while also promoting environmentally conscious business practices, sustainability and commerce. Xynergy Holdings, Inc. is focus on promoting global commerce within the realm of a global economy.

Safe Harbor

This press release includes statements that constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 (the "Reform Act"). Xynergy Holdings, Inc. claims the protection of the safe-harbor for forward-looking statements contained in the Reform Act. These forward-looking statements are often characterized by the terms "may," "believes," "projects," "expects," or "anticipates," and do not reflect historical facts. Specific forward-looking statements contained in this press release include, but are not limited to: our successful integration of diversified growth companies, impact of the company's expansion plan, and new business development success, future financial results, development and acquisition of new product lines and services, the impact of competitive products or pricing from technological changes, the effect of economic conditions and other uncertainties. The forward-looking statements contained herein involve risks and uncertainties that could cause actual results to differ materially from the expectations contained in any such, forward-looking statements. These risks include, but are not limited to: failure to manage operating expenses or integrate new companies and/or technologies, each of which could have a material impact on our business, our financial results, and the company's stock price. These risks and other factors are detailed in the Company's filings with the U.S. Securities and Exchange Commission and the Pink Sheets. Most of these factors are difficult to predict accurately and are generally beyond the Company's control. Forward-looking statements speak only as to the date they are made and Xynergy Holdings, Inc. does not undertake to update forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements are made.

Contact: Xynergy Holdings, Inc. 305-819-0452