The objective: integrating its products to existing infrastructureand engine technologies. In doing so provide: 1) A Biomass based refiners input that is competitively priced at source(BioOil). 2) A finished product that would be capable of competing on level terms withexisting hydrocarbon based fuels. 3) A finished product that would be compatible with existing infrastructure thusavoiding cost and complexity of dedicated storage, delivery, blend ratios andengine platforms. Dynamotive through its approach proposes a practical alternative for advancedbiofuels production and use which can be competitive on its own merits againsttraditional fossil fuels in a wide range of economic conditions.

Other Corporate Update: In other corporate developments, Messrs. Terwilliger and Winsor have retiredfrom the Board of the Canadian parent company but continue to sit on the Boardof the Company`s US subsidiary to assist management of the US operations.Dynamotive thanks these gentlemen for their valuable support over the lastseveral years. Cautionary Notes: Although Dynamotive believes the yield and cost figures described herein arereasonable estimates based on its current knowledge, it cautions that theseresults were achieved at bench-scale levels only. While Dynamotive believes theprocess can be scaled-up using conventionally available upgrading equipment,until such upgrades are in place on a large scale and have operated for a longerterm, these estimates may be subject to material adverse changes. Subject toavailability of financing, construction of a first commercial upgrading pilotplant is planned for later this year. Although patents for the process will befiled shortly, there is no assurance that patents will ultimately issue or thatproprietary protection will be available.BioOil is a registered trademark of DynaMotive Energy Systems Corp. About DynamotiveDynamotive Energy Systems Corporation is an energy solutions providerheadquartered in Vancouver, Canada, with offices in the USA and Argentina.

Itscarbon/greenhouse gas neutral fast pyrolysis technology uses medium temperaturesand oxygen-less conditions to turn dry, waste cellulosic biomass into BioOil forpower and heat generation. BioOil can be further converted into vehicle fuelsand chemicals. Photographs of the Guelph and West Lorne plants may be seen onthe company's website About BioOil® BiofuelBioOil® is an industrial fuel produced from cellulose waste material. Whencombusted it produces substantially less smog-precursor nitrogen oxides (`NOx`)emissions than conventional oil as well as little or no sulfur oxide gases(`SOx`), which are a prime cause of acid rain. BioOil® and BioOil Plus? areprice-competitive replacements for heating oils #2 and #6 that are widely usedin industrial boilers and furnaces. They have been EcoLogo certified, having metstringent environmental criteria for industrial fuels as measured by EnvironmentCanada`s Environmental Choice Program. BioOil® can be produced from a variety ofresidue cellulosic biomass resources and is not dependent on food-cropproduction.

Forward Looking StatementStatements in this news release concerning the company's business outlook orfuture economic performance; including the anticipation of future plantstart-ups, partnerships, consortiums, teaming agreements, government assistance,other anticipated cash receipts, revenues, expenses, or other financial items;and statements concerning assumptions made or expectations as to any futureevents, conditions, performance or other matters, are "forward-lookingstatements". Forward-looking statements are by their nature subject to risks,uncertainties and other factors which could cause actual results to differmaterially from those stored in such statements. Such risks, uncertainties andfactors include, but are not limited to, changes in energy prices, availabilityof capital, and the company's ability to access capital on acceptable terms orany terms at all, changes and delays in project development plans and schedules,customer and partner acceptance of new projects, changes in input pricing,competing alternative energy technologies, government policies and generaleconomic conditions. These risks are generally outlined in the company'sdisclosure filings with the Securities and Exchange Commission.