MISSISSAUGA, ON, March 24 /CNW/ - Hy-Drive Technologies Ltd. (TSXV: HGS) today announced its financial results for the Year and Three-Month periods ended December 31, 2010.

Highlights for the three-month and twelve-month periods ended December 31, 2010:

The following outlines the key events during the three-months ended December 31, 2010 and up to the date of this MD&A in the development of the Company:

The following outlines the key events in the development of the Company and the commercialization of the Company's technology and capabilities during the three-months and year ended December 31, 2010 and up to the date of this MD&A:

• On December 16, 2010, the Company announced that it would launch blutip Power Technologies ("blutip Power"), a new division to allow for product expansion into much broader markets. Hy-Drive would be rebranded as blutip Power Technologies. On February 1, 2011, Hy-Drive officially launched blutip Power. Blutip Power is a comprehensive platform for customer solutions to improve emissions and save fuel costs across many engine applications. In conjunction with this launch and the rebranding of the Company to blutip Power as announced in December 2010, the Company launched a new website www.blutipower.com to replace the Hy-Drive website. The Company announced its intention to continue working on diesel combustion, but also use its knowledge and expertise to expand into multi-fuel controls, smart telematics and a control and monitoring solution. Blutip Power offers customers access to engine combustion emissions analysis, environmental packaging, lab services and tailored program prototyping.
• On February 24, 2011, the Company launched its next generation of product, the blutip Power³. The Company completed a blutip Power³ Impact Study on stationary generator sets at the Caterpillar dealership facility of Toromont Industries Ltd., in Concord, Ontario. The study resulted in savings of over 10% of fuel usage on the Caterpillar XQ400 genset. As a result, the Company announced the immediate availability of the blutip Power³product for 400 kW class CAT Power Generators. It also announced that it is developing a product for generators with up to 1.5 MW capacities. The blutip Power³ Impact Study incorporated the use of the blutip AUC2 integrated with the HGS. The study results showed average fuel savings of 6 to 12% depending upon load variables. See www.blutipower.com/products/blutip-telematics-systems/ for a full copy of the report.
• On January 26, 2011, the Company completed its agreement with I.C.E. Fuel Technologies Ltd. ("ICE") to acquire certain intellectual property assets ("IP Assets"). As per the final agreement the Company issued 1,586,000 common shares and common share purchase warrants and made final payment of $292,881. The acquisition of the IP Assets and termination of the agreement allows the Company to internalize the intellectual property development and pave the way for global expansion into multiple diesel emissions and fuel economy applications and markets through rapid addition of engine platforms.
• On January 18, 2011, the Company entered into a Memorandum of Understanding with WorldKlass Technologies ('WorldKlass MOU" and "WorldKlass") to jointly deploy solutions for power generation equipment where high fuel consuming and emitting power generators can be made cleaner and more cost effective utilizing blutip Power solutions. WorldKlass has developed a complementary Infrared Fuel Ceramics technology and has concentrated on the power generation market with several large clients. The intent of the WorldKlass MOU is to deploy the respective technologies as a single source to achieve maximum efficiency in fuel consumption and emissions reduction.
• On January 11, 2011, the Company announced that it signed a Distributor Agreement with GreenCell Technologies Inc. ("GreenCell") (GT5:GR). GreenCell has a marketing system and several energy saving products that it will market in conjunction with the blutip Power products. GreenCell will concentrate on marketing, sales and service to the transport industry and the Company will focus on product development and cost efficiency. A third party assembler, to be sourced, will produce the product.
• On September 22, 2010, Mr. Robert Bucher was appointed Chief Executive Officer and President. Mr. Bucher has many years of experience in the technology sector, which he will bring to bear to realize the full potential of Hy-Drive's unique, patented and patent pending technologies. Pursuant to the Company's stock option plan, Mr. Bucher was issued options to purchase 1,000,000 common shares at $1.00 per share, which vest in four different tranches and expire ten years after the date of the grant. The first tranche of 250,000 options vested immediately; the second, third and fourth tranches are all subject to performance conditions. On October 7, 2010, Mr. Robert Bucher, CEO, was elected to the Board of Directors and Mr. Fred Florence, CA, CFO and Interim COO resigned from the Board.
• In September 2010, Hy-Drive discontinued its marketing services contract and its sales agency arrangement. The Company re-examined its marketing strategies and announced some new marketing initiatives as outlined above with GreenCell and WorldKlass. During the quarter, Hy-Drive discontinued its direct marketing mail campaign aimed at transport. Existing trials continued and are being monitored and followed up. In total there are 47 HGS units on trials at various fleets.
• Hy-Drive built several Beta units designed for mining/off-road use, referred to as the M3. The initial units are being used for qualification testing with MTI. This testing, which was initially expected to be completed in November 2010, has continued into 2011. In order to be used underground, the final product must receive approval from the relevant government agency. MTI and Hy-Drive will jointly manage the final approval testing process and are working collaboratively to complete the product development.
• In May 2010 the Company installed eighteen HGS units on a fleet of trucks on a rental arrangement. The rent was to be traded for advertising on the fleet's trailers. As a result, no revenue was recorded in accordance with Canadian GAAP. The Company decided not to proceed with the wraps after the first two due to cost constraints. The fleet agreed to provide access to the units for research and development of improved HGS software. The contra arrangement will expire in May 2011.
• Total cash and short-term investments used in operating activities was $1,133,794 and $5,340,899 for the three-months and year ended December 31, 2010 (2009 - ($60,557) and $3,347,244). During the final quarter Hy-Drive significantly decreased its spending on sales and marketing of its HGS product. In the final quarter of 2009 the Company had received payment of refundable tax credits from the Province of Ontario.
• Net loss for the three-months and year ended December 31, 2010 was $6,849,613 and $10,962,939 (net losses of $0.09 and $0.16 per share respectively) (Net losses in 2009 were $332,094 and $3,421,176 (net losses of $0.01 and $0.06 per share respectively)).
• The Company reports cash and short-term investments of $2,256,271 as at December 31, 2010, compared to $4,268,265 as at December 31, 2009; a decrease of $2,011,994 in the year.
• During 2010 the Company completed a Private Placement for net proceeds of $3,945,310. The Company issued 14,242,830 units each consisting of one common share and one-half of a common share purchase warrant (see Notes 12, 14 and 16 of the Audited Consolidated Financial Statements).

About blutip Power

blutip Power, a division of Hy-Drive Technologies Ltd., is a technology company headquartered in Mississauga, Ontario, Canada. The Company has invested in the research and development of hydrogen and control technology resulting in a proprietary, patented and patent-pending hydrogen generating system ("HGS®") and advancement in multi-fuel universal combustion controls. blutip's Hy-Drive HGS enriches the fuel-air charge of an internal combustion engine with hydrogen produced through electrolysis and uses its proprietary software controls to improve combustion of the fuel-air mixture. The result is improved fuel economy and reduced opacity (particulates).

Cautionary Note Regarding Forward-Looking Statements:

This press release contains certain forward-looking statements that are based upon current expectations, which involve risks and uncertainties associated with the Company's business, and the economic environment in which the business operates. Forward-looking statements contained in this MD&A that are not statements of historical fact may be deemed to be forward-looking statements including but not limited to, statements about future development of Hy-Drive's products, commercial production in 2011, future working capital requirements, and validation of Hy-Drive's products, and can be identified by the use of forward-looking terminology such as "plans", "expects", or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", or "does not anticipate", "thinks", or "believes" or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might", or "will be taken", "occur", or "be achieved" and similar expressions to the extent that they relate to the Company or its management. These forward-looking statements are not historical facts, but reflect the Company's current expectations regarding future results or events. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations, including the matters discussed in the section "Risks and Uncertainties" below.

Many of these assumptions are based on factors and events that are not within the control of Hy-Drive and there is no assurance they will prove to be correct. Factors that could cause actual results or events to vary materially from results or events anticipated by such forward-looking information include future working capital requirements, the ability to develop products on an economic basis, product validation, factors relating to the marketing, development and commercialization of Hy-Drive existing and prospective product lines, regulatory approvals and requirements, changes in foreign exchange and interest rates, government regulation, environmental risks, capital expenditures, intellectual property, operating or technical difficulties, risks associated with the emissions and fuel combustion industries such as economic factors (including fuel costs), failure of processes to operate as anticipated, dependence on key personnel, employee relations and availability of equipment and skilled personnel, actual results of current research and development activities, development timelines, risks associated with the emissions and fuel combustion industries, changes in project parameters as plans continue to be refined as well as those risk factors discussed below, which risks may cause actual results to differ materially from any forward-looking information.

Although Hy-Drive has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information.  Hy-Drive does not undertake to update any forward-looking information that is incorporated by reference herein, except in accordance with applicable securities laws.

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.