FAQ's   FAQ "What is the difference between hydrogen production and hydrogen insertion?" Hydrogen production is the simply the large scale manufacturing of hydrogen.  HyPower does this with its Hydrogen Reactor (H2R) which is capable of efficiently and effectively producing large quantities of hydrogen using electrolysis. Hydrogen insertion is the small scale, on-board, on-demand production of hydrogen by electrolysis for injection into conventional internal combustion engines. "Is hydrogen safe to use?" Hydrogen is the most abundant and lightest of gases and prefers to combine with other elements. Hydrogen disperses and combines with other elements very quickly. Only when hydrogen is stored in sizable quantities must proper safety precautions be taken. The Hydro Power Pak (HPP) produces hydrogen in small amounts as required and therefore is safe within its designed specifications. "Is this technology similar to that being developed by Ballard Power and other similar companies?" No, Ballard and other fuel cell developers are developing fuel cells which will use hydrogen as its sole or main source of power.  The fuel cells purpose is to produce electricity which in turn will power a vehicle or generator.  In contrast, the HPP produces hydrogen for use as an "alternative fuel" to act as a catalyst or supplement to traditional fossil fuels used in the operation of an internal combustion engine. Ballard is researching the viability of producing "Hydrogen Fuel Cells". Fuel cells are intended to utilize hydrogen as an alternative main fuel. In their case the vehicle will have fuel cells that produce electricity from hydrogen. The power generated will then be used to power electrical motors. This technology is still largely experimental and is not expected to be commercially available for many years. "Will the fuel cell make this technology obsolete?" While it is true that the HPP is a transitional technology, it is one which will be needed for at least 10 to 20 years.  The internal combustion engine has served us well for many years and in situations requiring a large amount of mobile power, it is unlikely that the diesel engine will be replaced any time soon.  Presently, fuel cells remain extremely expensive and it will be many years before fuel cells are in prevalent use.  An additional problem with fuel cells is the lack of infrastructure of hydrogen refueling stations.   "How does the Hydro PowerPak work?" The Hydro PowerPak (HPP) is a retrofit device that can be used in conjunction with any internal combustion engine.  The HPP uses less than 10 amps of the engines own electrical current to produce a small amount hydrogen by electrolysis.  When that hydrogen is injected into the engines combustion cycle it acts as a catalyst or supplement to improve fuel economy, decrease emissions, increase horsepower and reduce maintenance costs. Our Generation 1 Unit is used mainly for diesel hi-way tractor trucks and stationary diesel engines. "Being a retrofit product, what engine modifications need to be made?" Unlike engine conversions for propane or liquid natural gas (LNG), no engine modifications are required.  The only change to the engine is an insertion point into the air intake prior to the engine turbo. "What type of fuels will the Hydro Power Pak work with?" The HPP will work with any internal combustion engine regardless of the type of fossil fuel being used.  This includes fuels with high levels of bio-fuels. "Is it true that the HPP reduces fuel consumption?" Testing and usage has shown that the HPP can increase fuel economy.  Many different factors can change the fuel economy of an engine.  We anticipate fuel savings of 8% to 20% after the introduction of an HPP to an engine.  With the current price of fuel, an HPP unit can pay for itself in approximately six to twelve months. "Does the HPP also decrease engine emissions?" Yes.  This is quite likely the most significant advantage of using the HPP.  Testing and usage has indicated significant reductions in noxious and toxic engine emissions.  It is estimated that as much as 70% of urban smog is caused by vehicle emissions from diesel vehicles of one ton or greater.  The HPP is a proven performer in reducing these greenhouse gas (GHG) emissions thereby providing cleaner air for all. " Will this reduction in greenhouse gas emissions qualify the HPP buyer for 'green/GHG/climate/emission credits'?" Yes.  Under the Kyoto Protocol these emission credits are issued based on volume of GHG reduction.  The engines which will be using the HPP technology generally incurs a high degree of usage resulting in high levels of GHG output. The resulting credits issued can be sold and represent another cash flow for the purchaser.   "What other benefits does the HPP have?" Long-term usage has indicated that the HPP significantly reduces maintenance costs by decreasing the amount of carbon and other particulate matter in the engines oil.  Users have found that oil changes are required less often.  In addition, many of the engines moving parts experience less wear and tear due to a cleaner burn. "Does the HPP affect an engines manufacturer's warranty?" Original Equipment Manufacturers (OEM) engine warranties are not be affected by the installation of an HPP unit.  This is because the HPP does not alter the operation of the engine.  The HPP has been in use for millions of miles with trouble-free operation. "What is the expected useful live of an HPP unit?" Currently we guarantee the HPP for 400,000 miles or 8,000 hours of trouble-free operation providing you maintain it within design specifications. "How often do I need to service the HPP unit?" The only "servicing" required of the HPP unit is the need to add a distilled water approved by HyPower Fuel Inc.  The HPP uses approximately one gallon of water for each 5,000 miles or 150 hours of usage.  "Is it possible to become a distributor, installer or franchisee?" HyPower will soon be implementing a franchise package for interested parties.  For more information on this please contact us at:  www.hypower@hypowerfuel.com "Is HyPower Fuel Inc. a publicly traded company?" Yes.  Our trading symbol is HYPF on the OTCBB.PK.  You can follow our stock on www.pinksheets.com © 2006 HYPOWER FUEL, ALL RIGHTS RESERVED.