Dynamic Announces Closing of Private Placement

Pickering, Ontario CANADA, October 17, 2008 /FSC/ - Dynamic Fuel Systems Inc. (DYA - TSX Venture), (the "Corporation") announced today that it has completed a private placement of 7,930,000 units (the "Units") at a price of $0.10 per Unit for aggregate gross proceeds of $793,000. Each Unit consists of one common share in the capital of the Corporation (a "Common Share") and one common share purchase warrant (a "Warrant"). Each Warrant is exercisable into one Common Share at a price of $1.50 for a period of two years from the date of issuance thereof. This offering was completed on a non-brokered basis and no finders' fees were paid. An aggregate of 980,000 units were acquired by insiders under this offering. The foregoing private placement is subject to receipt of final approval from the TSX Venture Exchange. In accordance with applicable securities laws, the Common Shares and Warrants issued under the private placement are subject to four-month hold periods that will expire on February 18, 2009.

About Dynamic Fuel Systems Inc.

Dynamic Fuel Systems Inc. is a Pickering, Ontario based energy sector company engaged in the manufacture, distribution, installation and marketing of a transportable hydrogen generator retrofit targeted for use in the heavy tractor trailer industry. Its flagship product, the Jetstar(tm), is a patent-pending aftermarket retrofit solution that provides combustion enhancement by mixing hydrogen and oxygen into a vehicle's intake air to provide the engine with a more complete burn of the fuel in its internal combustion engine. Its business was founded in 2001 and more information about its products can be viewed at its website at www.dynamicfuel.com

This release includes forward looking statements, which are based on certain assumptions and reflects management's current expectations. These forward looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations. Some of these factors include: general global economic conditions; general industry and market conditions and growth rates; uncertainty as to whether our strategies and business plans will yield the expected benefits; increasing competition; availability and cost of capital; the ability to identify and develop and achieve commercial success for new products and technologies; the level of expenditures necessary to maintain and improve the quality of products and services; changes in technology; changes in laws and regulations, includes codes and standards, intellectual property rights, and tax matters; the uncertainty of the emerging hydrogen economy; including the hydrogen economy moving at a pace not anticipated; our ability to secure and maintain strategic relationships and distribution agreements. The Company disclaims any intention or obligation to update or revise any forward looking statements, whether as a result of new information, future events or otherwise.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

For further information, please contact:

Thomas Fairfull
President and CEO
Dynamic Fuel Systems Inc.
890 Brock Road South
Pickering, ON L1W 1Z9
905-831-2440
thomas@dynamicfuel.com
www.dynamicfuel.com