Global Lift Equipment Manufacturer Signs Key License Agreement with Cyclone Power Technologies

Cyclone Power Technologies (Pink Sheets: CYPW), developer of the all-fuel, clean-tech Cyclone Engine, announced today that it has finalized a license agreement with Combilift to manufacture and sell on a worldwide basis industrial material handling and lift equipment powered by Cyclone engine technology. This completes a letter of intent signed and announced in June 2011, and will result in Cyclone receiving approximately $400,000 in development funding over the next nine months.

Founded in 1998 in Ireland, Combilift builds and sells industrial material handling equipment, including specialized lifts and multi-directional side-loaders. For over a decade, Combilift has grown to be the global leader in the industrial long-load handling market. Supported by a strong international network of distributors, their products are sold in over 50 markets worldwide.

"We are pleased to commence this project, which is fueled by the vast market need for cleaner burning, more efficient and more powerful materials handling equipment,” stated Combilift President, Robert Moffett. "We believe that Cyclone engines will provide the power and clean energy efficiency that our customers require now and in the future.”

"As a partner, Combilift provides us with strong engineering support to assure a seamless integration of our technology into their innovative industrial equipment; and as a customer, they provide an enormous multi-national market for our engines,” stated Christopher Nelson, President of Cyclone. "We believe this license will represent a major business opportunity for Cyclone. We look forward to forging a strong and mutually beneficial relationship with Combilift for the long term.”

About Cyclone Power Technologies

Cyclone Power Technologies is the developer of the award-winning Cyclone Engine – an all-fuel, clean-tech engine with the power and versatility to run everything from waste energy electric generators and solar thermal systems to cars, trucks and locomotives. Invented by company founder and CEO Harry Schoell, the patented Cyclone Engine is a eco-friendly external combustion 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. 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.