Dynamic Fuel Systems Inc. (DYA-TSXV)

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May 28, 2010 Issue

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Dynamic Fuel Systems’ Relationship With Hydrogen Fuel Systems And Its Subsidiary Hydrogen Leasing Systems, Leading To Sales With Pepsi Cola, Green Transportation and Hayworth Has Helped To Validate The Value Of The Jetstar™ Hydrogen Generator In Lowering Fuel Consumption

Company Profile:

Dynamic Fuel Systems Inc. is a Pickering, Ontario based 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.

Jerry Solensky, Chief Executive Officer

Transportable Hydrogen Generator

Dynamic Fuel Systems Inc.
890 Brock Road
Pickering ON Canada L1W 1Z9
Phone: 905-831-2440

Interview conducted by: Lynn Fosse, Senior Editor, CEOCFOinterviews.com, Published – May 28, 2010

Mr. Solensky, how has Dynamic Fuel Systems changed since you have been CEO?

Mr. Solensky: Since I became CEO in November of 2009, the company has concentrated on three objectives (i) to drastically reduce the quarterly burn rate (ii) to seek out a top notch board of directors (iii) to perfect the Jetstar TM, an already excellent product, and make it a bolt-on-unit to any diesel driven combustion engine. Our shareholders will soon realize that I have succeeded on all three fronts.


CEOCFO: What is Dynamic Fuel Systems all about?

Mr. Solensky: Dynamic Fuel Systems manufactures a product that through the process of electrolyzes, injects hydrogen into the combustion chamber of an engine. This process results in a significant increase in mileage as well as reductions of emissions all the way down to approved EPA standards. In addition, there is an increase in horsepower and torque. Alan Bishop, our U.S. distributor, has fine tuned the operation of the Jetstar TM and placed it on 150 of his own trucks. You can view the results on his website: (Google: "Hydrogen Fuel Systems.") Bishop, through his company Hydrogen Leasing Systems, has leased or sold close to one hundred trucks to Pepsi Cola. Pepsi, who has had some of these trucks longer than a year, some of which have over three hundred and seventy five thousand miles without incident, is very satisfied with the product and reports savings in mileage, greater distance between oil changes, the use of less oil, cleaner emissions and less wear and tear on its trucks. Recently Bishop received another order from Pepsi of 40 trucks equipped with the Jetstar TM technology.


CEOCFO: Is this a new process?

Mr. Solensky: The process of producing hydrogen by means of electrolysis has been around for over a hundred years. And the number of individuals and companies listed on the Internet who promise fuel savings through hydrogen injection must number in excess of one thousand. As far as we know, none of these units actually make a lasting difference. One of the greatest obstacles to overcome in this hydrogen delivery business is the widespread perception that the entire industry is a "snake-oil" affair. So what is new? The fact that Dynamic fuel has created a unit that works big-time. Just ask Alan Bishop about Hayworth, Green Transportation and Pepsi Cola. Pepsi Cola, a Fortune 500 Company, is not about to be taken in by "snake-oil" salesmen. They do their due diligence. So the process that Dynamic Fuel uses is indeed new insofar as it has succeeded in making the process work over a duration of years. Third party tests by companies such as Emisstar have also confirmed that our product does indeed work.


CEOCFO: Would you walk us through how your product is applied?

Mr. Solensky: It is basically a very simple procedure. The Jetstar TM, which produces hydrogen and oxygen only when the truck is running, is attached to the tractor as a retro-fit. From there the hydrogen is fed into the combustion chamber of the engine.


CEOCFO: How is Pepsico utilizing your products?

Mr. Solensky: Pepsico buys or leases Gliders equipped with a Jetstar TM from Alan Bishop's company, Hydrogen Leasing Company. Pepsi presently has gliders on the road throughout the United States and is expanding into Canada. Pepsi is prepared to buy an increasingly larger fleet of Jetstar TM driven Gliders from Bishop if these units can achieve standards set by Pepsi. The standards are being met. These standards are very demanding and although we believe the Jetstar TM is the most successful product in its class out there, research and development is a never ending process at Dynamic Fuel Systems. Our new chairman has a business relationship with an individual who is brilliant in the area of fuel usage reductions as well as other enterprises.


CEOCFO: What is the plan; how do you get there?

Mr. Solensky: The plan is to convince the corporate accountants that hydrogen technology is to "completing the diesel fuel burn" what Marconi, the 19th century inventor, was to "wireless telegraphy." The scientific experts in Marconi's day who understood electro magnetic radiation (radio waves) knew from experimental data that these waves move in a straight line. So when an inventor named Marconi came along and said he was going to beam a radio signal around the world, the experts laughed because they quite correctly knew that radio waves do not bend over the horizon. However, Marconi ignored the experts, performed an experiment of sending a transmission of Morse code from Cornwall across the Atlantic to Newfoundland and was successful to the amazement of the established scientific community. In this case, both the experts and Marconi were both totally wrong and totally right. However, Marconi's radio equipment became the communication method of the day. Hydrogen technology suffers from a comparable misconception which is that diesel engines are 99.5% fuel efficient. They are not. The plan at Dynamic is to demonstrate in the practical terms of increased mileage and decreased emissions that hydrogen technology not only works but that it works brilliantly. The objective is to achieve a plus 50% fuel savings and emission reductions meeting EPA standards though a combination of technologies on a vehicle called a Glider. And to do this before the air is once again filled with Christmas song. How do we get there? We believe we are very close. Our technology is already achieving huge reductions. We expect to obtain a 50% reduction on Gliders before year end. Already groundwork has been laid for distribution of our technology in America, Europe, China and Australia.


CEOCFO: How are you developing these relationships?

Mr. Solensky: Alan Bishop, through Hydrogen Leasing Systems, has already introduced the Jetstar TM technology and other fuel saving technologies into the boardroom of Pepsi Cola. Bishop has done this with other large companies as well. Once our product becomes established with these marketing giants the credibility of our product will be assured.  Imagine the consequences of providing an easy to install and inexpensive fuel saving device for heavy trucks by simply installing a Jetstar TM (Hydro-Gen). The following fuel savings can be achieved: a) installing a Jetstar TM (Hydro-Gen) on almost any heavy duty truck: a 10% - 15% fuel savings. b) doing the above and changing the gear ratios on the truck: an additional fuel savings of 10% - 15% . And finally c) buying a Glider from Alan Bishop equipped with a Jetstar TM (Hydro-Gen) with changed gear ratios and other fuel saving devices: fuel savings of 40% - 50%. In addition to fuel savings there are numerous other money-saving benefits. As we speak, we are working to apply the technology to smaller trucks and other diesel engines as well.


CEOCFO: Where do you see your biggest challenges coming from, and how are you ready?

Mr. Solensky: The biggest challenge is to assure that the unique insights discovered in this revolutionary technology are adequately patented. We believe they are. The shareholders of Dynamic Fuel systems (DYA-TSX-V) have waited years for developments such as these. We plan not to disappoint them.


CEOCFO: You have a well-thought-out plan!

Mr. Solensky: Well I appreciate that. It has certainly taken a lot of work. But I can tell you it is not by effort on my part alone. We have an excellent team that I have been very fortunate to be a part of. Our chairman and the new board of directors have certainly been very engaged, and I expect that their engagement will continue. The company was also fortunate to gain access to the original insights and inventiveness of a brilliant young innovator. I would prefer not to mention his name at this time. The Jetstar TM, which will soon be renamed the "Hydrogen Gen" TM, may possibly be the beginning of a new series of machines applying hydrogen to generators, ships and trains. Anything, almost, that has a diesel combustion engine.


CEOCFO: Sum it up for potential investors: why should they pick Dynamic Fuel Systems?

Mr. Solensky: At its current price the shares of Dynamic Fuel Systems only cost pennies. It is still a genuine penny stock.  True, Dynamic is a Venture Company. There are risks. But the risks are becoming smaller. And risk always accompanies investment. The rewards are huge. Today, practically everybody is interested in Green Technology and saving the planet. Imagine the consequences of manufacturing heavy-duty trucks known as Gliders with up to 50% reduction in heavy-duty truck fuel usage and meeting the present demanding emission standards of the EPA. If the reader finds all this a bit far-fetched, Google "Hydrogen Fuel Systems." To speak to Alan Bishop, the creator of the Glider used by Pepsi or to the Chairman of Dynamic Fuel, set up contact through Dave Sikkema at 1-559-451-6409.


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Dynamic Fuel Systems at its current share price presents an opportunity to really expand one’s personal investment portfolio or business portfolio into green space technology. The fact that Dynamic's technology has been widely used over a period of years by Hydrogen Fuel Systems who in turn has introduced the technology to Pepsi Cola, certainly makes this a company to seriously consider for addition to one's investment portfolio. - Jerry Solensky

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