HyPower to sell 250 hydrogen engine booster packs to Canadian company

September 27, 2006

HyPower Fuel Inc. (OTCPK: HYPF.PK) has received a conditional purchase order for 250 Hydro Power Pak (HPP) units from Skyways Technical Services, Inc. (Skyways) a northern oil and gas service company.

The purchase order is contingent on HyPower's HPP units meeting certain emissions criteria when used in conjunction with the John Deere Model 4045P stationary diesel engine.

"We were impressed by the HPP unit and its possibilities for saving fuel costs in the energy rich north. Fuel is very expensive in the north and fuel costs in business and for living form a much larger percentage of expenditures than in other parts of Canada and the United States," explained Mr. Ken Rombough, President of Skyways.

HyPower's current product, the Hydro Power Pak (HPP), is a retrofit hydrogen insertion device developed for use on tractor trailer rigs as well as stationary diesel engines to improve fuel economy, reduce harmful emissions and increase engine performance and horsepower. Although the HPP does not eliminate the need for gasoline, diesel or other fuels, it does provide the onboard production of hydrogen that supplements the primary fuel source.

HyPower believes the HPP is more efficient than any existing form of electrolysis-based hydrogen production/insertion technology. The HPP is a transition technology paving the way for future retrofit hydrogen production technologies that will allow engines to be fueled totally with hydrogen produced on board, on demand. This purchase will represent approximately $875,000 US in revenue for HyPower.

For more information:

www.hypowerfuel.com

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