Financial Highlights
     -  Revenues from cylinder and systems sales for the twelve months ended
        December 31, 2006 of $35.9 million increased $12.4 million or 53%
        compared with the twelve months ended December 31, 2005.
     -  Revenues from cylinder and system sales for the three months ended
        December 31, 2006 of $11.3 million increased $5.4 million or 92%
        compared with the same period of 2005.
     -  Confirmed order book in excess of $29.0 million as at
        December 31, 2006 to be delivered in 2007.
     -  Twelfth consecutive quarter of positive EBITDA(1).
     -  Cash flow from operations for the year ended December 31, 2006 was
        $1.1 million.

Christian Rasche, President and Chief Executive Officer, noted that the increase in fourth quarter revenues reflects shipments which were deferred from the second and third quarters due to delivery delays in raw materials. As noted in Dynetek's second quarter 2006 report, heavy rains and flooding shut down the manufacturing plant of a key raw material supplier and prevented it from delivering for a period of time. Although Dynetek has worked closely with the supplier to overcome past delivery issues, many shipments by Dynetek of cylinders and systems were delayed from the second and third quarters into the fourth quarter. Normally Dynetek ships its products by sea at low cost. In order to maintain market leadership and customer needs, Dynetek incurred unexpected airfreight costs of approximately $1.3 million and additional labour and overtime costs of approximately $0.2 million in order to fill our European orders by year end. Dynetek continued to airfreight its products overseas until mid February 2007, at which time it resumed shipping by sea at lower cost.

"2006 was a tremendous year for cylinders and system sales for Dynetek," commented Mr. Rasche. "In Europe we experienced a 54% increase in our CNG cylinder and system sales from one year ago. Our Canadian operation also saw a 53% increase in cylinder and system sales."

"We were frustrated in 2006 with our raw material supply and the difficulties it caused in our ability to deliver to our customers," said Mr. Rasche. "Without the additional airfreight expense and labour costs, Dynetek would have been profitable."

     (1)  Earnings before interest, taxes, non-cash foreign exchange,
          impairment of other assets, stock based compensation, depreciation
          and amortization (EBITDA) is a non-GAAP measure and may not be
          comparable to similar measures used by other companies. Management
          believes EBITDA is a useful measure to assist in the assessment of
          Dynetek's ability to generate cash flows from its operations.
 

     Year in Review

     -  Total revenue for the twelve months ended December 31, 2006 of
        $38.4 million compared to $26.7 million for the same period of 2005.

     -  Total revenues for the three months ended December 31, 2006 of
        $12.1 million, which is $5.3 million or 78% increase compared to the
        same period of 2005.

     -  Cylinder and system sales for the European operations for the
        twelve months ended December 31, 2006 were $22.8 million representing
        an increase of $8.0 million or 54% compared to 2005.

     -  Cylinder and system sales for the Canadian operations for the twelve
        months ended December 31, 2006 were $13.1 million representing an
        increase of $4.4 million or 51% compared to 2005.

     -  Contribution margins decreased from 23% in fourth quarter of 2005 to
        16% in the comparative fourth quarter for 2006, and from 25% for the
        year ended December 31, 2005 to 21% for the year ended December 31,
        2006, primarily due to abnormal airfreight costs as noted above.

     -  Cash flow from operations for the fourth quarter ended December 31,
        2006 was $1.8 million compared to $1.3 million for the same period of
        2005.

     -  Dynetek's Canadian operation delivered 27 bulk transportation modules,
        representing revenue of $4.6 million, to John Thompson Engineering
        PTY, a division of Burns and Roe Worley, located in Sydney, Australia.
        Dynetek's BT modules are being used to transport compressed
        natural gas (CNG) to a power plant located in Western Australia.

     -  Signed a letter of intent with Delphi Automotive Systems Do Brazil
        LTDA. ("Delphi SA"). Delphi SA is a wholly owned subsidiary of Delphi
        Corp., of Troy, Michigan. The letter of intent records the intention
        of Dynetek and Delphi SA to negotiate a commercial agreement to
        establish an exclusive distributorship arrangement and the prospect
        for a manufacturing plant in Brazil for the production of DyneCell
        cylinders for CNG in transit bus and automotive applications into the
        South American market.

     -  Signed a sub-project agreement with ATF Advanced Technologies & Fuels
        Canada Inc. (ATFCAN), to supply six CNG fuel storage systems,
        including related engineering and on the ground support, to Tata
        Motors Limited of India.

     -  Supplied the on-board hydrogen fuel storage systems to Ford Motor
        Company for the first three hydrogen powered vehicles delivered
        December 7th to Parliament Hill in a unique pilot project to test the
        vehicles in real-life conditions. Dynetek is providing its certified
        350bar (5000psi) storage solution for these hydrogen fueled internal
        combustion engines.

     -  Moved the Dynetek Europe operation to a larger facility and along with
        additional production equipment increased manufacturing capabilities.
     

In early 2007 Dynetek announced that it had accepted a purchase order representing approximately $7 million (CAD) in sales with Magna Steyr, an operating unit of Magna International Inc. The purchase order involves the development, certification and supply of 700bar compressed hydrogen fuel storage systems, including related engineering, to Magna Steyr in connection with DaimlerChrysler's fuel cell program. Dynetek will commence delivery of storage systems for system and vehicle testing in the later part of 2007.

Additional information relating to Dynetek

Additional information concerning Dynetek is available on SEDAR at www.sedar.com.

Dynetek Industries Ltd. is a leading international company engaged in the design, manufacturing and marketing of fueling systems and high-pressure components including valves and regulators. The key component of the storage system is the DyneCell (R) cylinder, capable of storing high pressure gases including compressed natural gas (CNG), hydrogen, and various industrial gases. Dynetek's cylinder and fuel storage systems applications include but are not limited to: the transportation industry, including passenger automobiles, light and heavy-duty trucks, transit and school buses; the bulk hauling of compressed gases; and stationary storage or ground storage refueling applications.