Odyne Corp. Provides Business Update and Reports Financial Results for 2006

HAUPPAUGE, N.Y.--(BUSINESS WIRE)--Odyne Corporation (OTCBB:ODYC), a leading developer of advanced plug-in hybrid electric vehicle (PHEV) technology for trucks and buses, today announced financial results for the full year ended December 31, 2006.

Roger M. Slotkin, CEO of Odyne Corporation, commented, “These are exciting times for Odyne Corporation. In 2006, we received our first orders from municipalities in both New York and California, which are leading the way in adopting clean energy technologies. We have recently established strategic alliances to enable us to best address the opportunities in the alternative energy area. Our proprietary propulsion systems for advanced Plug-In Hybrid Electric Vehicles (PHEV) reduce the cost of operation, significantly reduce emissions, substantially extend the life of the vehicle, are fuel agnostic, and allow for easy recharging off the power grid while recapturing energy from the stop-and-go action of the vehicle.”

Mr. Slotkin continued, “We achieved important milestones in 2006 which will further strengthen our position in the marketplace. During the fourth quarter, we completed our reverse merger and raised a total of $5.75 million in a private placement to fund our sales and marketing initiatives and to support our expanded operations. We also entered into a sales and marketing agreement with Nassau Suffolk Truck, a leading regional medium and heavy duty truck fleet services firm based on Long Island whose customers include municipalities, corporations and private companies throughout the New York tri-state area. In 2007, in anticipation of production ramp up later this year, we entered into a strategic supplier agreement with Bosch Rexroth Corp. to provide Odyne with preferred pricing and a steady supply of electric motors and drives for our plug-in hybrid electric vehicle applications.”

“As we look to the future, we envision being a prominent player in the Plug-In HEV market, that we estimate could grow to $1.8 billion per year. Our competitive advantages over alternatively fueled vehicles and those powered by combustion engines are substantial and our fuel-agnostic system gives us the versatility to combine our technology with vehicles utilizing various types of fuels. Highly volatile fuel costs, increasingly stringent emissions standards and Americans’ desire to be less dependent on foreign oil are major drivers for the industry going forward. We believe that Odyne is in the right place at the right time with the competitive edge and strategic thinking to capture meaningful market share in a rapidly growing market segment,” Mr. Slotkin concluded.

The results for 2005 reflect Odyne’s operation as a private company. The results for 2006 include Odyne’s activity as a private company from January 1, 2006 until October 17, 2006 and as a public company thereafter. Total revenue for the twelve months ended December 31, 2006 was $242,945, compared to $285,598 for the same period in 2005, representing a reduction of 15%. The decrease in revenue was caused by a decrease in non-recurring consulting revenues that was not offset by the increase in revenue related to PHEV technology. Operating loss for the twelve months ended December 31, 2006 was $1.681 million, compared to an operating loss of $0.622 million for the same period last year. The increased operating loss was due to reduced gross profit related to sales mix, increased R&D spending and increased G&A costs primarily related to the 2006 reverse merger and private placement. Net loss attributable to common stockholders for the twelve months ended December 31, 2006 was $5.241 million, or $0.40 per share, compared to a net loss of $0.695 million or $0.06 per share, for the same period in 2005. The net loss in 2006 included a non-cash charge of $3.231 million in deemed dividends related to the beneficial conversion features of our Series A convertible preferred stock and an additional non-cash charge of $0.25 million in imputed interest charges associated with convertible debentures that were converted to Series A convertible preferred stock as part of the 2006 reverse merger.

About Odyne Corporation

Odyne Corporation is a clean technology company that develops and manufactures propulsion systems for advanced Plug-in Hybrid Electric Vehicles (PHEV), specifically medium and heavy-duty trucks and buses. The company has developed a proprietary system combining electric power conversion, power control and energy storage technology, with standard electric motors, storage batteries and other off the shelf components to create a lower fuel cost, lower operation and maintenance cost, substantially lower emission and quieter vehicle. Odyne’s PHEV systems are series configuration hybrids with significant advantages over the parallel architecture used in hybrid passenger cars. Visit www.odyne.com for more information.

Forward-Looking Statements

This news release contains certain “forward-looking statements,” related to the business of Odyne which can be identified by the use of forward-looking terminology such as “believes,” “expects” or similar expressions. Such forward looking statements involve known and unknown risks and uncertainties, including uncertainties relating to product development and commercialization, regulatory actions or delays, the ability to obtain or maintain patent and other proprietary intellectual property protection, market acceptance, future capital requirements, competition in general and other factors that may cause actual results to be materially different from those described herein as anticipated, believed, estimated or expected. Certain of these risks and uncertainties are or will be described in greater detail in our filings with the U.S. Securities and Exchange Commission. Odyne is under no obligation to (and expressly disclaims any such obligation to) update or alter its forward-looking statements whether as a result of new information, future events or otherwise.