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Hydrogen Engine Center, Inc. Delivers Oxx Power™ Engines to All North American Distributors

2007 product lineup announced

ALGONA, Iowa (Aug. 22, 2006) — Hydrogen Engine Center, Inc. (OTCBB: HYEG.OB) has launched shipment of its Oxx Power™ production engines to its North American distributors.

On August 17, Hydrogen Engine Center (HEC) delivered the first HEC Oxx Power™ (4.9L) in-line 6 cylinder, spark-ignited internal combustion engine to Jim Brazeal, president of Kansas City Power Products. Oxx Power™ engines are designed to run on ethanol, propane, gasoline, natural gas or hydrogen. When running on hydrogen, the engine produces near zero emissions. Distributors are able to order engines which HEC can optimize to run on the fuel of their choice.

“Kansas City Power Products only sells equipment from companies that have good business practices in place during their engine assembly process,” said Jim Brazeal. “ Hydrogen Engine Center has demonstrated to us a commitment to quality and an efficient, scalable and repeatable manufacturing process.”

The initial delivery of engines to HEC’s distributors will be used for sales training and to demonstrate to customers the unique advantages of the alternative fuel engines.

HEC also announced its 2007 product lineup adding engine configurations consisting of 2, 3 and 8 cylinder engines, all capable of running on hydrogen and other alternative fuels.

HEC anticipates producing 10,000 engines per year in its current manufacturing facility and is continuing to expand its manufacturing capacity. Expansion of capacity is targeted to continue in the first and second quarter of 2007 to meet demand, subject to the receipt of sufficient financing to expand its operations.

“The range of engines and generator sets we are building demonstrates our commitment to respond to the large market demand for alternative fuel engines,” said Ted Hollinger, HEC co-founder and president. “HEC is founded on the core strengths of manufacturing competence and technology leadership. We also envision a world where the engine fueling options HEC offers will help reduce the world’s dependency on petroleum products. We expect to play a significant roll in fulfilling the growing demand for power sources that are environmentally friendly.”

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