Dynetek Incorporates German Subsidiary

CALGARY, July 5 - Dynetek Industries Ltd. (TSE: DNK) announced today it incorporated a wholly owned subsidiary, Dynetek Europe GmbH.

Located in Germany, the plant is expected to be fully operational in the latter part of fiscal year 2001. The plant is currently being certified to ISO 9002 and Dynetek will sell cylinders certified to ISO 11439.

"This operation will support marketing, sales and manufacturing of our products in Europe, the United Kingdom, and the Middle East," states Heinz Portmann, Dynetek's President and Chief Executive Officer.

Dynetek Europe GmbH is located near Dusseldorf, at the following address:

    Dynetek Europe GmbH
    Breitscheider Weg 117 a
    40885 Ratingen
    Germany
    Tel:  +49 2102 30963-30
    Fax: +49 2102 30963-10
    www.dynetek.de

Dynetek develops, produces and markets advanced lightweight fuel storage systems for storing CNG (compressed natural gas) for low emission CNG vehicles and compressed hydrogen for zero emission hydrogen fuel cell vehicles. The Dynetek Advanced Lightweight Fuel Storage System(TM) is marketed under the DyneCell(R) brand name. Dynetek's common shares trade under the symbol DNK on the Toronto Stock Exchange.

For further information: Robb D. Thompson, Chief Financial Officer, Tel: (403) 720-0262 or 1-888-396-3835 (toll free in North America), www.dynetek.com