Dynamotive Energy Systems Corporation (OTCBB: DYMTF) announced today that its net loss for the third quarter ended September 30, 2007 was $3.2 million, or $0.02 per share, compared with net loss of $3.1 million or $0.02 per share in the third quarter of 2006. Dynamotive’s net loss for the nine months ended September 30, 2007 was $9.9 million, or $0.05 per share, compared with a net loss of $10.1 million, or $0.07 per share for the nine months ended September 30, 2006.

Excluding stock-based compensation, the net loss for the third quarter ended September 30, 2007 was $2.1 million, compared with a net loss of $2.4 million for the same quarter in 2006. Dynamotive’s net loss for the nine months ended September 30, 2007 was $7.3 million, compared with a net loss of $6.9 million for the same period in 2006.

Total non-cash expenses for the third quarter were $1.1 million in 2007 ($0.7 million in 2006) and for the nine months ended were $2.6 million ($3.8 million in 2006), resulting from non-cash compensation and other non-cash charges.

Dynamotive President and CEO, Andrew Kingston said: “During the third quarter, the company continued start-up operations of its new 200 tpd plant in Guelph Ontario and the upgrading of its first commercial BioOil plant in West Lorne, Ontario. The Company also continued project development activities through its Canadian, US and Latin American subsidiaries and supporting activities by agents and partners in Europe, Far East and Australia. Further activities included continued research in the upgrading of BioOil and market testing for our fuel.”

“The Company’s commercial activities were adversely affected during the quarter due to delays in the start-up of the Guelph plant resulting from the need for completion of non-core systems and civil works, as well as delays in the supply of equipment which were beyond management control.  Notwithstanding this, the Guelph plant operated at capacity (within the operating restrictions established by permitting authorities) and an important number of demonstrations to potential customers were conducted in the period.  The plant is now in operation and related business activities are accelerating as the plant demonstrates its viability.”

Other recent Dynamotive highlights:

• Signed letter of agreement with Mitsubishi Corporation identifying how the two companies can proceed on mutual development strategies.
• Completed construction of 200 tonne-per-day biofuels plant in Guelph, Ontario, start-up commenced.
• Upgrade work on West Lorne biofuels plant nearing completion.
• Development of six plants in Argentina announced and began moving forward.
• Reached agreement with Ontario Power Authority to supply renewable power from West Lorne biofuel plant.
• Announced development and launch of high energy content biofuel, BioOil Plus™.
• Initiated tests in Iowa to use char (biochar) for soil enrichment and crop productivity enhancement, as well as carbon sequestration.
• Appointed Wayne Keast of the Consensus Business Group to Dynamotive’s Board of Directors.
• In early October, shortly after the quarter end, Dynamotive’s balance sheet was strengthened with the completion of a $10.5 million private placement financing. The company continues to hold minimal long-term debt.

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