Dynamic has completed the first round of cross-examinations of Canadian Hydrogen Energy Company Ltd. ("CHEC") affiants in respect of the alleged breach of confidence action and interlocutory injunction initiated by CHEC in June 2004. Subsequent to the cross-examinations, both Dynamic and its litigation counsel are confident that the interlocutory injunction will fail and that the alleged breach of confidence action is without merit;

2. In respect of Dynamic's petition to have CHEC's patents invalidated which Dynamic initiated in July 2004, on November 19, 2004 Dynamic served and filed a Reply to the Defence and Counterclaim of CHEC, which alleges that Dynamic infringed with CHEC's patent and claims damages of $20 million or an accounting for profits and punitive damages of $2 million. Based on the pleadings and prior art, both Dynamic and its litigation counsel are confident that the CHEC patents will be invalidated in Canada and the counterclaim dismissed. Dynamic is reserving its right to invalidate the CHEC patents in all other jurisdictions; and

3. Dynamic has now issued and served a Statement of Claim on John A. Colonna, Steve McNutt and Proto Technologies, past employees and/or contractors of Dynamic and present employees and/or contractors of CHEC, for breach of their respective Non-Circumvention and Non-Disclosure Agreements with Dynamic and for misappropriation of Dynamic's valuable confidential information.

Dynamic remains vigilant in the protection of its valuable confidential information, technology and business and continues to enforce its rights against third parties.

This press release is available on the Dynamic Fuel investor relations site for investor questions, commentary and feedback. Investors are asked to visit http://www.agoracom.com and select the Dynamic Fuel Investor Discussion and Contact Forum. Alternatively, investors can e-mail their questions or comments directly to DYA@agoracom.com or asked to be placed on the Dynamic investor e-mail list to receive all future press releases directly.

About Dynamic Fuel Systems Inc. http://www.dynamicfuel.com

Dynamic Fuel Systems Inc. is an energy sector company engaged in the manufacture, distribution, installation and marketing of a transportable hydrogen generator retrofit targeted for use in the heavy tractor trailer industry. Its flagship product, the Jetstar(tm), is a patent-pending aftermarket retrofit solution that provides combustion enhancement by mixing hydrogen and oxygen into a vehicle's intake air to provide the engine with a more complete burn of the fuel in its internal combustion engine.

The Company was founded in 2001 and is headquartered in Pickering, Ontario. To find out more information about Dynamic Fuel Systems (TSX-V: DYA), visit our website at www.dynamicfuel.com

This release may include forward looking statements, which are based on certain assumptions and reflects management's current expectations. 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. Some of these factors include: general global economic conditions; general industry and market conditions and growth rates; uncertainty as to whether our strategies and business plans will yield the expected benefits; increasing competition; availability and cost of capital; the ability to identify and develop and achieve commercial success for new products and technologies; the level of expenditures necessary to maintain and improve the quality of products and services; changes in technology; changes in laws and regulations, includes codes and standards, intellectual property rights, and tax matters; the uncertainty of the emerging hydrogen economy; including the hydrogen economy moving at a pace not anticipated; our ability to secure and maintain strategic relationships and distribution agreements. The Company disclaims any intention or obligation to update or revise any forward looking statements, whether as a result of new information, future events or otherwise.

The TSX Venture Exchange does not accept responsibility for the adequacy of this release.