New HPI Technology Provides Path to Commercialization

SEATTLE, Jan. 7 /PRNewswire-FirstCall/ -- Hydrogen Power, Inc. ('HPI', 'the company') (OTC Bulletin Board: HYDP), an engineering development stage hydrogen generation company, today announced that it has developed a new technology for mixing its proprietary AlumiFuel(TM) fuel which significantly improves performance and cost effectiveness in its target energy applications.

HPI's new technology covers the production of hydrogen from aluminum, water and a proprietary reactant additive using an advanced processing technique and formula. This new mixing technology -- which creates a different and faster reaction than previously used mixing technologies -- has made possible the 60% increase in hydrogen generation yields and 45% reduction in fuel production costs specified in HPI's news release of December 3, 2007.

Cartridges filled with AlumiFuel(TM) powder are dropped into a reactor and when water is added, high purity hydrogen and steam are generated as a result of the chemical reaction. The hydrogen and/or steam can be fed into fuel cells, turbine-based power conversion modules, or directly into inflatable devices, such as weather balloons.

HPI has filed a provisional patent application for the new technology, which is considered a separate invention and is the property of HPI. This is the technology the company is now using in all applications being pursued with partners and customers (see HPI news releases of August 15, 2007 and December 5, 2007).

Mr. Ben Larson, HPI's Director of Business Development, said: 'As the company moves into the hardware engineering development stage for product applications with selected partners, the new mixing breakthrough makes HPI's AlumiFuel(TM)-based technology highly competitive for certain portable, stationary power and underwater systems.'

HPI (http://www.hydrogenpowerinc.com) is an alternative energy company with patented hydrogen generation technology based on a proprietary aluminum-water chemical reaction, and demonstrator prototypes using unique AlumiFuel(TM) drop-in recyclable cartridges. The company's addressable markets include portable and stationary power applications for National Security, Homeland Security and commercial customers demanding safe, pure, cost-effective hydrogen on-site and on demand, with no external power required and no toxic chemicals or by-products.

Safe Harbor for Forward-looking Statements:

This news release may contain forward-looking statements that are made pursuant to the 'safe harbor' provisions of the Private Securities Litigation Reform Act of 1995. While these statements are made to convey to the public the company's progress, business opportunities and growth prospects, they are based on management's current beliefs and assumptions as to future events. However, since the company's operations and business prospects are always subject to risk and uncertainties, the forward-looking events and circumstances discussed in this news release might not occur, and actual results could differ materially from those described, anticipated or implied.

SOURCE Hydrogen Power, Inc.