Odyne Corp. Ramps Up Hybrid System Production Through Strategic Supplier Agreement With Bosch Rexroth Corp.

HAUPPAUGE, N.Y.--Odyne Corporation (OTCBB:ODYC), the leading developer of advanced plug-in hybrid electric vehicle (PHEV) technology for trucks and buses, today announced a strategic supplier agreement with Bosch Rexroth Corp. to provide preferred pricing and a steady supply of electric motors and drives for its plug-in hybrid electric vehicle applications, as Odyne begins to ramp up production in 2007.

Bosch Rexroth, a division of Bosch Group., will provide electric motors to be used in Odyne’s proprietary powertrain system for medium and heavy-duty trucks and buses. The motors are used for multiple functions, including: generators to produce the electricity that charges the battery packs; traction motors to transfer power from the battery packs to the vehicle; and during regenerative braking, to transfer the kinetic energy from the vehicle to the battery packs. Bosch Rexroth and Odyne will work together to ensure that future Bosch products will be optimized for plug-in hybrid applications.

“It is critical for Odyne’s manufacturing and assembly processes to ensure a high quality, reliable supply of these critical components as we begin to receive orders for our low emission, lower cost electric technology,” explains Roger M. Slotkin, CEO of Odyne. “Bosch has a superb reputation for electric components and service so they’re a natural fit as one of our strategic suppliers.”

Rich Huss, Vice President and General Manager of Bosch Rexroth Electric Drives and Controls, stated, “Market awareness and demand for plug-in hybrid electric vehicles is growing rapidly as fleet managers explore solutions to lower fuel and vehicle maintenance costs. Odyne has developed proven and cost effective solutions to fill this important niche for medium and heavy-duty trucks. We are excited to partner with Odyne Corporation, as they are a clear leader within this market.”

About Bosch Rexroth Corporation

Bosch Rexroth AG, part of the Bosch Group, achieved sales of approximately $5.7 billion (4.6 billion Euro) in 2005 with over 28,200 employees. Under the brand name of Rexroth the company offers all drive and control technologies, from mechanics, hydraulics and pneumatics to electronics and associated service. Over 500,000 customers worldwide utilize Rexroth’s unique technological know-how to implement their innovative and future-oriented systems and machine concepts. The global player, represented in over 80 countries, is an extensive supplier of components and systems for industrial and factory automation and mobile applications. Visit www.boschrexroth-us.com for more information.

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.