For Immediate Release
Contact:
Eric Yaverbaum
914-834-2199
Hy-Drive Set to Trade Green Credits

As investment banks like Goldman Sachs and Morgan Stanley
have rapidly expanded their carbon businesses in London

TORONTO, ON, July 10, 2007 – Hy-Drive Technologies Ltd. (TSX.V – HGS) is now in a position to facilitate the trading of Greenhouse Gas Credits, just as the New York Times reports “In London Financial World, Carbon Trading is the next big thing”. Today, the energy technology firm formally launched its ISO 14064 process compliant, Greenhouse Gas (GHG) Reduction Program. Hy-Drive has partnered with Jomini Environmental Inc., who will be responsible for maximizing the GHG reduction credits obtainable from use of Hy-Drive’s Clean Air Operating System™.

Effective immediately, representative commercial trucks making full use of the Hy-Drive operating system, are eligible to earn up to 16 tons of reductions and removals in carbon dioxide equivalent in each year of operation. It is expected that the 16 ton rating will be substantially increased as Hy-Drive and Jomini continue the validation and verification programs.

“In addition to saving our customers money from using less fuel, Hy-Drive is also fully committed to helping our clients deliver emission control that greatly benefits our environment” said Tom Brown, President and CEO of Hy-Drive. “We are listening to our customers needs and desires and we are now in a carbon market which Barclays Capital has claimed will become the world’s biggest commodity market. So many CEOs are indicating that they want to be a part of the solution instead of the problem – and our Clean Air Operating System™ can do that for them, today” concluded Mr. Brown.

The greenhouse gas reductions can be publicly traded on registered exchanges such as the European Union Emission Trading Scheme (ETS), where credits have traded as high as €34.00 ($45.77 US) per 1000 kg. The carbon removals can also be sold privately in wholesale agreements with larger consumers of petroleum fuel.

Tom Brown, President and CEO of Hy-Drive is available for interview.

Demo of the Hy-Drive technology available upon request.

Commercial Trucking Fleets using Hy-Drive System available for comment.

Press photos available upon request.

About Hy-Drive

Hy-Drive is an energy technology firm that has developed a proprietary, patented hydrogen generating system. The Hy-Drive system 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 further information, visit www.hy-drive.com.

About Jomini

Jomini Environmental Inc. provides strategic environmental planning including the quantification of Green House Gas (GHG) emission reductions and removals through the ISO 14064 process. With expertise in the development of new solutions for the market, these and other solutions currently deployed can be reviewed through a proprietary process that can lead to the quantification, validation and verification of reductions and removals, leading to the aggregation and possible trading of these units.

For more information go to www.jomini-international.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.

For more information, please contact:
Investor Relations: U.S. Media Relations:

Glen Akselrod
Bristol Capital Ltd.
Tel: (905) 326-1888
glen@bristolir.com

Eric Yaverbaum
Ericho Communications
Tel: (914) 834-2199
eyav@erichopr.com

Fern Marcya Edison
Ericho Communications
Tel: (846)-679-6319
fern@erichopr.com

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.