VANCOUVER--(BUSINESS WIRE)--Dynamotive Energy Systems Corporation (OTCBB: DYMTF.OB), a leader in ligno-cellulosic biomass based fuels technology, today reported its fourth quarter and full year 2007 results.

The Company’s Comprehensive Loss (including foreign currency adjustment of $6.2 million), was $8.0 million for the Year 2007. Excluding the foreign currency adjustment, the company’s 2007 Net Loss was $14.2 million, or $0.08 per share, compared with a net loss of $14.3 million, or $0.09 per share, for 2006. Excluding Stock based compensation, the Company’s Net Loss for 2007 was $10.6 million (2006 $9.9 million). (All figures are in US dollars)

For the three months ended December 31, 2007, the company reported a loss of $4.3 million or $0.02 per share, compared with a loss of $4.1 million or $0.02 a share for the same period a year earlier. Net of Non-cash compensation, the Company had a Net Loss of $3.3 million during the forth quarter compared to $3.1 million during the fourth quarter of 2006.

As at December 31, 2007, the Company had cash and cash equivalents of $1.8 million. This reflects the Company’s cash balance at the beginning of 2007 of $9.3 million plus equity issuance of $23.1 million less capital expenditures of $21.0 million and operating expenditures of $9.6 million (which includes changes in working capital balances and miscellaneous non-cash charges).

CEO Commentary

Andrew Kingston, president and chief executive officer, said, “During the year Dynamotive completed construction of a state-of-the-art, modular 200-ton-per-day BioOil plant in Guelph, Ontario and also expanded and upgraded the West Lorne, Ontario plant, which is currently re-starting operations. Additionally, we strengthened Dynamotive’s management team and positioned ourselves to capitalize on world-wide market opportunities, most specifically in Canada, U.S., and Latin America. The Company faced many challenges during 2007, as we worked to bring our biofuel facilities to operating status, as well as expand business operations in North and South America. We fully expect 2008 to be a year of achieving significant milestones.”

2007 Highlights

Financial

• Significant cash infusions from $23.1 million in equity financings and warrant exercises used to fund operations and to complete the Guelph and West Lorne plants.
• Minimal debt
• Invested $2.0 million in R&D ($4.2 million in 2006).
• Incurred $3.6 million in non-cash compensation expenses ($4.3 million in 2006).

Operational

• Launch of higher energy content biofuel – BioOil Plus
• Signed Contract with Ontario Power Authority to Supply Power to Grid
• Established First Resources Corporation to develop partnerships with First Nations
• Signed agreements with provincial government in Argentina to develop up to six biofuel plants
• BioOil production start-up at Guelph 200 tpd plant
• Signed comprehensive Letter of Agreement with Mitsubishi Corporation
• Announced key agreements for our first commercial plant in the USA, in Willow Springs, Missouri.

Summary Financial results are presented as follows:

Consolidated Statement of Loss
(expressed in 000’s of US Dollars)
		Years Ended				3 Months Ended
		December 31				December 31
		2007		2006		2007		2006
		$		$		$		$
Expenses
Marketing and business development		1,602		1,768		546		374
Research and development		2,040		4,248		297		1,197
General and administrative		11,026		7,763		3,805		2,481
Depreciation and amortization		144		124		45		40
Interest expense		22		505		9		58
Exchange gain		(419)		(89)		(90)		(337)
Total expenses		14,415		14,319		4,612		3,813
Other income and (expenses)		207		494		83		128
Loss on settlement of AP		(111)		(98)		(3)		(98)
Gain (loss) on purchase/sale of subsidiary		-		(420)		230		(420)
Loss before minority interest		14,319		14,343		4,302		4,203
Non-controlling interest		99		91		3		91
Loss for the period		14,220		14,252		4,299		4,112
Comprehensive Loss		8,008
Weighted avg. number of common shares outstanding (in thousands)		189,573		153,686		205,329		168,463
Loss per Common Share
for the Period		$0.08		$0.09		$0.02		$0.02

About Dynamotive

Dynamotive Energy Systems Corporation is an energy solutions provider headquartered in Vancouver, Canada, with offices in the USA, UK and Argentina. Its carbon/greenhouse gas neutral fast pyrolysis technology uses medium temperatures and oxygen-less conditions to turn dry, waste cellulosic biomass into BioOil for power and heat generation. BioOil can be further converted into vehicle fuels and chemicals. Photographs of the Guelph and West Lorne plants may be seen on the company's website. www.dynamotive.com

About BioOil^® Biofuel

BioOil^® is an industrial fuel produced from cellulose waste material. When combusted it produces substantially less smog-precursor nitrogen oxides (‘NOx’) emissions than conventional oil as well as little or no sulfur oxide gases (‘SOx’), which are a prime cause of acid rain. BioOil^® and BioOil Plus^™ are price-competitive replacements for heating oils #2 and #6 that are widely used in industrial boilers and furnaces. They have been EcoLogo certified, having met stringent environmental criteria for industrial fuels as measured by Environment Canada’s Environmental Choice Program. BioOil^® can be produced from a variety of residue cellulosic biomass resources and is not dependent on food-crop production.

Forward Looking Statement

Statements in this news release concerning the company's business outlook or future economic performance; including the anticipation of future plant start-ups, partnerships, consortiums, teaming agreements, government assistance, other anticipated cash receipts, revenues, expenses, or other financial items; and statements concerning assumptions made or expectations as to any future events, conditions, performance or other matters, are "forward-looking statements". Forward-looking statements are by their nature subject to risks, uncertainties and other factors which could cause actual results to differ materially from those stored in such statements. Such risks, uncertainties and factors include, but are not limited to, changes in energy prices, availability of capital, and the company's ability to access capital on acceptable terms or any terms at all, changes and delays in project development plans and schedules, customer and partner acceptance of new projects, changes in input pricing, competing alternative energy technologies, government policies and general economic conditions. These risks are generally outlined in the company's disclosure filings with the Securities and Exchange Commission.

Dynamotive
Brian Richardson, Chief Financial Officer, 604-267-6004
or
Nathan Neumer, Director of Communications, 604-267-6042

Switchboard (604) 267-6000
Toll Free (North America) 1-877-863-2268
Fax (604) 267-6005
info@dynamotive.com
www.dynamotive.com