Cyclone Power Technologies Signs Letter of Intent To Expand Engine Development in China

POMPANO BEACH, Fla.--(Business Wire)--
Cyclone Power Technologies Inc. (Pink Sheets: CYPW) has signed a Letter of
Intent with Great Wall Alternative Power Systems Ltd. to advance the development
and production of Cyclone`s award-winning heat-regenerative external combustion
engine in China.

Under the terms of the Letter of Intent, Great Wall Alternative Power Systems
(GWAPS) will invest capital, assets and know-how necessary for a development
program aimed at making certain of the Cyclone engine systems ready for
production, sales and marketing in China within the next 12 to 24 months. These
investments will include: legal and financial structuring, intellectual property
protection, recruitment and management of skilled personnel, and securing of
facilities, hardware and software for engineering, manufacturing and testing the
engine systems.

"Developing our technology for the Chinese market is absolutely necessary for
the long term growth and viability of our company," stated Cyclone COO, Frankie
Fruge. "However, it is also a frightening proposition unless we have partners we
can trust to establish strong protections for our intellectual property. With
the talented principals of Great Wall, we believe we have found this dependable,
knowledgeable and highly professional group."

GWAPS, a company organized in the BVI and located outside of Beijing, plans to
commence with the development of beta versions of Cyclone`s 95HP Mark V engine
for electric power production, and the company`s biomass-to-power portable
generator system. For these rights, GWAPS will pay Cyclone development and
licensing fees not disclosed at this time and subject to the execution of a
final Technology License Agreement.

"In the middle of a massive multi-decade power rollout, there is intense
interest in increasing the efficiency and flexibility of China`s energy
systems," stated Robert Devine, Managing Director of GWAPS. "We believe that
Cyclone`s groundbreaking engine technologies will have widespread application in
China and a real opportunity for market breakthrough. GWAPS is very pleased to
be working together with the Cyclone team on this opportunity."

Cyclone received a patent in China earlier this year for its external combustion
engine. Establishing licensing and joint venture relationships with companies
experienced in the countries where Cyclone has secured patent protection is a
key component of the company`s business model.

CORPORATE PROFILE

Cyclone Power Technologies is the developer of the award-winning Cyclone Engine
- an eco-friendly external combustion engine with the power and versatility to
run everything from portable electric generators and garden equipment to cars,
trucks and locomotives. Invented by company founder and CEO Harry Schoell, the
patented Cyclone Engine is a modern day steam engine, ingeniously designed to
achieve high thermal efficiencies through a compact heat-regenerative process,
and to run on virtually any fuel - including bio-diesels, syngas or solar -
while emitting fewer greenhouse gases and irritating pollutants into the air.
Currently in its late stages of development, the Cyclone Engine was recognized
by Popular Science Magazine as the Invention of the Year for 2008, and was
presented with the Society of Automotive Engineers` AEI Tech Award in 2006 and
2008. Additionally, Cyclone was recently named Environmental Business of the
Year by the Broward County Environmental Protection Department. For more
information, visit www.cyclonepower.com.

Safe Harbor Statement

Certain statements in this news release may contain forward-looking information
within the meaning of Rule 175 under the Securities Act of 1933 and Rule 3b-6
under the Securities Exchange Act of 1934, and are subject to the safe harbor
created by those rules. All statements, other than statements of fact, included
in this release, including, without limitation, statements regarding potential
future plans and objectives of the company, are forward-looking statements that
involve risks and uncertainties. There can be no assurance that such statements
will prove to be accurate and actual results and future events could differ
materially from those anticipated in such statements. The company cautions that
these forward-looking statements are further qualified by other factors. The
company undertakes no obligation to publicly update or revise any statements in
this release, whether as a result of new information, future events or
otherwise.

Cyclone Power Technologies
Media Contact:
Will Wellons, 407-462-2718
will@wellonscommunications.com
or
Company Contact:
Frankie Fruge, 954-943-8721
Frankie@cyclonepower.com

Copyright Business Wire 2009