Attention Business/Financial Editors

Hy-Drive Technologies announces annual 2007 results

	    Focus on Cost Control, Product Reliability and Product Performance  	    TSX Venture Exchange symbol: HGS  	    MISSISSAUGA, ON, April 7 /CNW/ - Hy-Drive Technologies Ltd. ("Hy-Drive") (TSX-V: HGS) today announced its financial results for the year ended and three-month period ended December 31, 2007. Financial Statements for the Company and an accompanying MDA were released today at www.sedar.com.  	    Financial Review:  	    The following table sets out selected financial data for the year and 3 months ended December 31, 2007 and 2006.  	    << 	                       Twelve months ending           Three months ending 	                    December 31,   December 31,   December 31,   December 31, 	                           2007           2006           2007           2006 	    ------------------------------------------------------------------------- 	    Revenues      $      98,743  $     918,087  $           -  $     173,029 	    Net loss      $ (16,778,664) $  (6,381,929) $  (3,962,084) $  (1,586,353) 	    Loss per 	     share        $       (0.28) $       (0.13) $       (0.06) $       (0.03) 	    ------------------------------------------------------------------------- 	    Total Assets  $  20,604,943  $  22,354,889 	    Total 	     Liabilities  $   2,148,894  $   2,200,871 	                  ---------------------------- 	    Total Cash 	     and 	     Equivalents  $   2,557,549  $  14,987,027 	    Total 	     Short-term 	     investments  $  13,044,438  $   1,536,484 	                  ---------------------------- 	    CASH & SHORT 	     TERM 	     INVESTMENTS  $  15,601,987  $  16,523,511 	                  ---------------------------- 	    >>  	    During 2007, the Company became aware of some performance degradation and component failure in the Hydrogen Generating System (HGS) product. The Company completed rigorous inspections, tests and analyses, and determined that the principal source of the problems was related to the variability of the materials used in component construction. As such, new unit production was temporarily suspended and consequently, no revenues were recognized during the second, third and fourth quarters of 2007. Since that time, the Company has enhanced design processes, improved validation testing and significantly strengthened quality control prior to the release of newer generation HGS product. 	    Expenses incurred for the year ended December 31, 2007 were $17,785,177 compared to $6,940,060 for the similar period in 2006. Total expenses increased by $10,845,117 during the year ended December 31, 2007 as compared to the previous year. Major expense increases include an inventory write-off of $4,470,868, an increase in direct engineering and quality management of $1,072,626, an increase in warranty costs of $595,383, restructuring costs of $788,230, plus an increase in stock-based compensation $1,610,261. 	    The Company recorded a loss of $16,778,664 ($0.28 per share) for the year ended December 31, 2007 compared to a loss of $6,381,929 ($0.13 per share) for the year ended December 31, 2006. Cash and short-term investments reported as at December 31, 2007 is $15,601,987 as compared to $16,523,511 as at December 31, 2006. 	    Continuing into 2008, significant cost-cutting initiatives, including a "pause" in international marketing activities, a deliberate slow down of new sales, a re-organization of the Board, senior management, and administration will all contribute to extending the financial highway for Hy-Drive. 	    With a singular focus on product reliability and performance, the Company maintains sufficient cash resources to support continued development activities and the anticipated commercialization of the HGS system.  	    About Hy-Drive  	    Hy-Drive is a technology firm that has developed a proprietary, patented hydrogen generating system. Hy-Drive's Clean Air Operating System(TM) generates and injects hydrogen gas into a regular internal combustion engine, enhancing the combustion process by allowing fuel to burn more efficiently and completely. 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.       -30-

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