Hydrogen Engine Center Reports Second Quarter and First Half Financial Results
Algona, Iowa, United States August 14, 2008

• Company Moving Toward Carbon Reduced, Carbon-Free Energy
• First Half Engine Orders Strong

Hydrogen Engine Center, Inc., (OTC BB: HYEG), a developer of systems and processes used in the design, manufacture and distribution of alternative fuel internal combustion engines, engine controls and generator systems, has announced its second quarter and first half 2008 financial results.

In second quarter 2008, revenues reached $360,000, up from $203,000 in second quarter 2007. Gross profit rose to $107,000 in 2008’s second quarter from $33,000 in 2007. The Company recorded a net loss attributable to common stockholders of $686,000, or 2 cents per fully diluted share, for the quarter ending June 30, 2008 compared to a net loss of $1.1 million, or 4 cents per fully diluted share, for the quarter ended June 30, 2007.

For the six months ended June 30, 2008, Hydrogen Engine Center had revenue of $521,000, an increase from $442,000 in the first half of the previous year. Gross profit almost doubled to $130,000 for the half year ended June 30, 2008 from $69,000 recorded in the first six months of 2007. The net loss for first half 2008 declined to $1.5 million, or 6 cents per fully diluted share, against a net loss of $2.9 million, or 19 cents per fully diluted share, in the first six months of 2007.

Ted Hollinger, President and CEO of Hydrogen Engine Center, said, “Hydrogen Engine Center continues to move toward its goal of leading the way toward a carbon-free economy. Our product line is gaining traction and our sales team is building a successful track record.

“We believe that our third quarter results will improve on those of the comparable periods last year, and that 2008 will be our strongest performance since inception. We plan to be more involved in the distributed generation market as governmentally imposed emission standards tighten and the clean-energy solutions offered by our intellectual property develop and become accepted in the market place. We also plan to aggressively market our carbon-reduced and carbon-free products during the remainder of 2008.

Hydrogen Engine Center, Inc. (HEC) develops systems and processes used in the design, manufacture and distribution of alternative fuel internal combustion engines, engine controls and generator systems. These technologies are for use by customers and partners in the industrial and power generation markets. We have and continue to file patents around these next generation systems and processes. These solutions and the engines using them are designed to run on alternative fuels including but not limited to gasoline, propane, natural gas, ethanol and hydrogen. We are developing engines that are fueled by ammonia. Our engines and engine products are sold under the brand name Oxx Power ™. HEC trades on the Bulletin Board under the symbol "HYEG.OB." Principal offices are located at 2502 E Poplar St., Algona, Iowa 50511. Visit www.hydrogenenginecenter.com or in the US dial 515-295-3178 for more information.

This press release may contain certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Investors are cautioned that such forward-looking statements involve risks and uncertainties, including without limitation, acceptance of the Company's products, increased levels of competition for the Company, new products and technological changes, the Company’s ability to hire and retained qualified employees, the Company's dependence on third-party suppliers, the availability of capital and other risks detailed from time to time in the Company's periodic reports filed with the Securities and Exchange Commission.

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Source: Hydrogen Engine Center