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IHS Official Press Release

Innovative Hydrogen Solutions Inc. (IHS), Inventors of the Partial Hydrogen Injection System (i-phi™), Announces New Manufacturing Alliance

Chatham- Kent, Ontario – Innovative Hydrogen Solutions (IHS) has signed a manufacturing supply agreement with Salem Preferred Partners (SPP) of Salem, Virginia with a facility in Wallaceburg, Ontario, to produce their i-phi™ system for mass distribution in Canada and the United States.  Manufacturing and initial shipments began in Q3 of this year.

IHS’s patent pending i-phi™ (Innovative - Partial Hydrogen Injection) works with any internal combustion engine. The product is an onboard generator of hydrogen and oxygen gases. It is safe and reliable technology that injects hydrogen and oxygen into the air intake manifold of the engine causing a more efficient burn of the fuel during combustion. The results are increased fuel efficiency, reduced maintenance costs, and significant emission reductions for applications such as trucks, tractors, buses and generator sets.

“After 4.5 years and millions of dollars invested in development and testing, we are now ready to bring the i-phi™ to market” said Peter McLaughlin, CEO of IHS. Peter McLaughlin went on to say, “We are very pleased to have partnered with SPP who has manufacturing expertise in Canada and the USA for the heavy duty truck OEM market. Based on this expertise, SPP will be able to keep up with the anticipated market demand for our i-phi™ systems”.

Joe Williams – IHS President said, “President Obama’s State of the Union address before Congress on Jan 28, 2009 called for the federal government to spend billions on research to develop clean energy technologies, which confirms the importance of our i-phi™ system”. Williams goes on to say, “We are working hard on developing the infrastructure required to support our aggressive sales forecast in the year to come.  All diesel engine vehicle owners across North America will be targeted because they have the most to gain from reduced fuel costs and emissions”.

Dave Mearon, Chairman of the Board and head of IHS Research and Development said, “Now that the i-phi™ generation 1 model is completed, we will start focusing attention into other market segments like locomotives, ships, and agriculture”.

For current information, visit the IHS web site at www.ihsresearch.com.

For more information including product specifications, please contact:

Joe Williams
President
Innovative Hydrogen Solutions
190 - 117 King Edward St. E
Winnipeg, Manitoba
R3H OY3
Phone: 204.786.6392
Phone: 866.266.4940
Fax: 204.786.6403
jcwilliams@mts.net

For information on manufacturing, please contact:

Jerry Callahan
Chief Executive Officer
Salem Preferred Partners, LLC
236 Rowan Street
Salem, VA 24153
Phone: 843.860.9484
Fax: 866.467.5525
jerry.callahan@sppllc.com