As President and CEO of Dynamic Fuel Systems Inc., I would like to take this opportunity to thank our shareholders for their continued loyalty and support and to highlight some of the company’s significant accomplishments in 2007 and initiatives as we move forward into 2008. Dynamic’s principal objective is to be the first, best, highest quality and lowest cost technology provider of automotive fuel efficiency products and systems. Two major internal changes have occurred in 2007 which we believe will serve to assist us in realizing this objective: 1.The appointment of a new director, Gerald Solensky Jr., who brings us a wealth of industry experience and enthusiasm; and 2. The formation of two Advisory Committees with seasoned, experienced businessmen, which will provide Dynamic an excellent source of knowledge and experience to assist the company in developing and executing its strategic business plan.

Dynamic has experienced several significant developments in 2007, including the retirement of its outstanding debenture (resulting in the reduction of our overall indebtedness by 1.7 million dollars), the establishment of a retail dealership program, the entering into of affiliated partnership agreements with JKH Inc. (which provide an established, stabilized source of cash flow) and the receipt of our first significant purchase order for Jetstar™ units through our dealer network.

These developments have provided us an excellent base to build from and to continue to expand and grow with a view towards realizing our principal objective. I am personally looking forward to 2008 and believe it will be the best year of record since the company’s inception as we look to further expand on our dealer program and continue to further establish and grow our product sales. Throughout this growth phase, corporate communication with our shareholders is essential and the continued cascading of information is a high priority of mine. We are excited about our prospects for further market penetration within the trucking segment and also expect to continue working in parallel with other target market roll-outs and sales platforms in 2008. It is our hope that overall awareness and visibility of Dynamic and our products and services will continue to grow and become increasingly more prevalent throughout 2008, resulting in further growth and support of our shareholder value.

In conclusion, we have accomplished a tremendous amount in 2007 and consider our company to be well-positioned for further expansion and growth in 2008. I look forward to further pursuing our goal of being the first, best, highest quality and lowest cost technology provider of automotive fuel efficiency products and systems. I am excited for the future of Dynamic Fuel Systems Inc. and look forward to accomplishing our goals and rewarding the continued loyalty of our shareholders with further growth and success.