CARSON CITY, NV--(MARKET WIRE)--Jan 10, 2008 -- Xynergy Corporation (Other OTC:XYNG.PK - News) announced today its plans for launching hydrogen-powered restaurants either wholly owned or partially owned by Xynergy. Utilizing proprietary hydrogen-splitting generators, the plan calls for the development of several prototype concept restaurants in areas of the country known for green-conscious, eco-friendly consumers. The company plans on announcing its first location in the coming days. The technology is based upon hydrogen splitting and has been proven to be effective in creating sufficient power to supply the power needs of restaurants, gas stations, and all small businesses, as well as traditional gas engines used in today's boats and automobiles. The source of power for the generators is water, including salt water. The savings to the business owner could be near 70% to 80% of its normal power bills, and the benefit to the planet is the emission of oxygen as opposed to much more damaging emissions.

Subsidiary To Be Formed For Development of Concept Restaurants Utilizing Hydrogen Splitting Technology

The company has indicated it is forming subsidiaries for its restaurant concept development and prototyping. "In this climate of over-valued fossil fuel, it is imperative from both a corporate responsibility perspective as well as just being a provider of more cost-efficient means of producing power that we have changed the course of our business model to announce and implement this revolutionary initiative," says COO Kevin Brinkworth. "As we narrow down our search for an interim CEO, we believe that the forming of a subsidiary for these purposes accomplishes several positive benefits for our shareholders, and our new CEO will carry out these objectives."

Tentative Target Date For Flagship Restaurant Opening is Mid to Late Summer

"The technology is ready to go, ready to power small business. We are making decisions right now as to where and when we will open our first restaurant. We have finalized concept and themes. We feel very strongly that we can and will be ready to open our first hydrogen powered store by mid summer. This is a revolutionary technology we're talking about, with the potential to change the energy landscape forever," says Brinkworth.

ABOUT XYNERGY CORPORATION

The company is engaged in the development and investment of alternative energy technology and the identification, marketing and utilization of applications for such technologies. The company has identified several business sectors that these technologies can serve, including restaurants, commercial bakeries, gas stations, and all small businesses, as well as gas engines for automobiles and boats. This technology has the potential to revolutionize the energy industry because it is believed that this technology, which uses water as a power source, is the only one in the world that can turn hydrogen into real power in a cost-efficient manner, making it truly an alternative energy solution. The company recently announced that it has retained the services of Joseph Emas to file its form 10 for the purposes of becoming a fully reporting 1934 Act company. Preparations for the audit of the company's books and records has begun, and the company hopes to become fully reporting within 120 days.

Cautionary note: This report contains forward-looking statements, particularly those regarding cash flow, capital expenditures and investment plans. Resource estimates, unless specifically noted, are considered speculative. By their nature, forward-looking statements involve risk and uncertainties because they relate to events and depend on factors that will or may occur in the future. Actual results may vary depending upon exploration activities, industry production, commodity demand and pricing, currency exchange rates, and, but not limited to, general economic factors. Cautionary Note to US investors: The U.S. Securities and Exchange Commission specifically prohibits the use of certain terms, such as "reserves" unless such figures are based upon actual production or formation tests and can be shown to be economically and legally producible under existing economic and operating conditions.

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