Vancouver, Canada
June 2, 2008

Dynamotive Reports 1st Quarter 2008 Results

VANCOUVER, BC, June 2, 2008 - Dynamotive Energy Systems Corporation (OTCBB: DYMTF), a leader in biomass-to-biofuel technology, today reported its first quarter 2008 results.

For the three months ended March 31, 2008, the company reported a loss of $1.4 million or $0.01 per share, compared with a loss of $3.2 million or $0.02 a share for the same period a year earlier. When stock-based compensation is excluded, Dynamotive’s Q1 2008 net loss was $0.8 million, compared with $2.4 million during 2007. (All figures are in US dollars.)

The lower loss for the quarter is due mainly to the recognition of $500,000 of license revenue from a contract in place since 2006, lower research and development expense and stock based compensation, partially offset by increased activity levels in the Company’s US and Argentine offices. Also included is a reversal in the quarter of certain compensation costs of $1.1 million previously accrued and expensed in fiscal 2007 and which reversal resulted from a voluntary surrender of certain compensation entitlements by senior management.

During the quarter, Dynamotive continued commissioning of a state-of-the-art, modular 200-tonnes-per-day intermediate grade BioOil® plant in Guelph Ontario and completed the upgrade in West Lorne, Ontario. This upgrade expands the West Lorne plants capacity to 130 tonnes per day.

President and CEO, Andrew Kingston, said: “During the first quarter of 2008, we made significant advances at our Guelph and West Lorne plants though we continue to deal with various start up issues as we push to higher capacity levels and longer production runs. We suffered a set back at West Lorne in early April with a small fire, but that damage is being repaired and the plant will be back on line shortly.  We have also continued to develop our US and South American projects and will continue to report substantive developments as they occur.”

Dynamotive highlights in the First Quarter of 2008

• Completion and advanced commissioning at Guelph.
• Initial production from the upgraded West Lorne plant.
• Dynamotive completes feedstock supply and other contracts in US (Missouri) and Argentina (Corrientes) in support of project developments.
• Signed a cooperation agreement in Taiwan to potentially develop BioOil plants in the Greater China area
• Advancing additional project opportunities in Europe, Australia, Southeast Asia and elsewhere.

Summary Financial results are presented as follows:

Consolidated Statements of Loss
(Expressed in 000's US Dollars)
	Three Months Ended March 31,
	2008	2007
	$	$
Revenue
License Revenue	500	-
Expenses
Marketing and business development	319	346
Research and development	231	894
General and administrative	2,453	2,094
Depreciation and amortization	37	30
Interest expense	18	-
Exchange gain	14	(17)
Total expenses	3.072	3,347
Gain on reduction of bonus and vacation accruals	1,138	-
Other income	1	79
Loss before non-controlling interest	1,433	3,268
Non-controlling interest	-	(29)
Net Loss for the period	1,433	3,239
Weighted avg. number of common shares outstanding (in thousands)	208,009	177,602
Loss per Common Share for the Period	$0.01	$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.

Contacts:
Brian Richardson, Chief Financial Officer, 604-267-6004
Nathan Neumer, Director of Communications, 604-267-6042
Switchboard (604) 267-6000
Toll Free (North America) 1-877-863-2268
Fax (604) 267-6005

Email: info@dynamotive.com
Website: www.dynamotive.com

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