HOUSTON, Texas, Dec. 3 /PRNewswire-FirstCall/ -- H2Diesel Holdings, Inc. (OTC:HTWO) (BULLETIN BOARD: HTWO) and Dynegy Inc. today announced the successful completion of the second of three biofuel tests in their test program at Dynegy's Oakland Power Plant in Oakland, California. The test was in the planning stages for several months and was performed on one of the plant's six Pratt and Whitney FT4 gas turbine engines. The primary goal of this second test was to demonstrate the capabilities of H2Diesel's "Hybrid" formulation which is designed for customer applications where a higher flash point product is required. Formal test data are being evaluated, but preliminary results indicated no shortfalls in engine output or efficiency and NOx emissions that were significantly lower than when firing distillate fuel oil. "We continue to be pleased with the results of our Oakland test program," said David A. Gillespie, President and CEO of H2Diesel. "The positive performance of our Hybrid product allows us to continue to tailor the properties of our renewable biofuel to meet the specific unique needs of each of our utility and independent power producer customers." Randy Hickok, Dynegy's Managing Director of Western Assets, stated, "The results of our test program using H2Diesel biofuel continue to be encouraging. We are looking forward to further validation of H2Diesel's renewable biofuel technology." About H2Diesel Holdings, Inc. H2Diesel is a development stage company that holds an exclusive license for North America, Central America and the Caribbean to proprietary technology to manufacture an alternative biofuel from vegetable oils and animal fats that we intend to market as a new class of alternative fuel or fuel additive for power generation, heavy equipment, marine use or as a heating fuel. We believe our biofuel will provide a cheaper, renewable alternative energy source with significantly lower emissions than traditional fuels and a cleaner and more efficient alternative to heating oil. Our business model calls for establishing biofuel production facilities directly and through sublicensing of its technology to qualified licensees. This news release contains forward-looking statements. These forward- looking statements concern the Company's operations, prospects, plans, economic performance and financial condition and are based largely on the Company's beliefs and expectations. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results to be materially different from any future results expressed or implied by such forward looking statements. The risks and uncertainties related to our business include all the risks attendant a development stage business in the volatile energy industry, including, without limitation, the risks set forth under the caption "Risk Factors" in the Company's Annual Report on Form 10-KSB for the fiscal year ended December 31, 2006 and Current Report on Form 8-K, filed on October 18, 2007. CONTACT: David Gillespie, President & CEO Rob Schatz H2Diesel Holdings, Inc. Wolfe Axelrod Weinberger 713-973-5720 Associates, LLC 212-370-4500 DATASOURCE: H2Diesel Holdings, Inc. CONTACT: David Gillespie, President & CEO of H2Diesel Holdings, Inc., +1-713-973-5720; or Rob Schatz of Wolfe Axelrod Weinberger Associates, LLC for H2Diesel Holdings, Inc., +1-212-370-4500

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