MISSISSAUGA, ON, March 17 /CNW/ - Hy-Drive Technologies Ltd. ("Hy-Drive")
(TSX-V: HGS) today announced its financial results for the year and
three-month period ended December 31, 2008. Financial Statements for the
Company and an accompanying Management Discussion and Analysis were released
today at www.sedar.com.

	    Financial Review:

	    The following table sets out selected financial data for the year and
three months ended December 31, 2008 and 2007:

	    <<
	    -------------------------------------------------------------------------
	                          Twelve months ending        Three months ending
	                      -------------------------------------------------------
	                       December 31,  December 31,  December 31,  December 31,
	                           2008          2007          2008          2007
	    -------------------------------------------------------------------------
	    Revenues                     -        98,743             -             -

	    Net loss            (5,868,405)  (16,778,664)      (52,141)   (3,962,084)

	    Loss per share           (0.10)        (0.28)        (0.00)        (0.06)
	    -------------------------------------------------------------------------
	    Total Assets        14,629,376    20,604,943

	    Total Liabilities    1,476,170     2,148,894
	    ---------------------------------------------
	    Total Cash and
	     Equivalents         2,193,612     2,557,549

	    Total Short-term
	     Investments         7,041,712    13,044,438
	    ---------------------------------------------
	    Cash & Short-term
	     Investments         9,235,324    15,601,987
	    ---------------------------------------------
	    >>

	    During 2008, the Company implemented a rigorous quality control process
that included testing components as well as its Hydrogen Generating System
("HGS(TM)") product.
	    In the fourth quarter of 2008 third party validated tests on diesel
engines ranging from 5.9 to 7.2 liters demonstrated significant fuel savings
and emissions reductions. Hy-Drive was able to use these important findings as
directional indicators guiding the Company as it moved on towards HGS product
verification for larger engines typically used in Class 8 sized trucks. Third
party performance validation and initial commercialisation for Class 8 sized
engines is expected in 2009.
	    During 2008 Hy-Drive entered into a non-binding Memorandum of
Understanding (MOU) to acquire intellectual property from a third party
developer of enhancements for diesel engines. The consideration is to be the
issue of 3,250,000 common shares. That MOU includes agreement to purchase
further intellectual property on an incremental basis at the Company's
discretion to work as a component of the HGS(TM). The MOU is subject to
regulatory approval and the parties entering into a definitive agreement.
	    The Company reduced its expenses for the year ended December 31, 2008 to
$5,845,703 from $17,785,177 for 2007, a reduction of $11,939,474.
	    The Company recorded a loss of $5,868,405 ($0.10 per share) for the year
ended December 31, 2008 compared to a loss of $16,778,664 ($0.28 per share)
for the year ended December 31, 2007. The total of cash and short-term
investments reported as at December 31, 2008 and 2007 were $9,235,324 and
$15,601,987 respectively.