XYNH Xynergy Holdings Inc (CE)

Xynergy Holdings, Inc. (the "Company") (PINKSHEETS: XYNH) Although initial testing in the 2008 Toyota Yaris appeared to have yielded positive results, the Company announced today that it has discontinued testing of the Company's Hydro-X Assist Cell due to a recently discovered flaw in the effects of the catalyst solution on the engine. This discovery has resulted in voiding the manufacturer's warranty and has flagged the Company's 2008 test vehicle thereby preventing any further warranty issues from being covered under its warranty policy. "This was a huge blow to our research and development efforts, particularly after what appeared to have been such successful road tests. Consumers may want to save money on their gas bills, but certainly not at the expense of voiding their vehicle's manufacturer's warranty," say Company CEO, J.C. Ley.

Mr. Ley goes on to say, "Xynergy Holdings has had to change its approach to this industry and the market it initially intended to pursue. We believe that the direct to consumer market, with vehicles still under warranty, is now completely out of the Company's focus. Our intention is to eliminate the use of a catalyst but we are not sure how that will affect the efficiencies we are seeking." In the interim, the Company plans to seek applications of the cell on out of warranty vehicles and to test a newly designed cell on diesel engines. Similar to the initial cell, tested back in 2009, the newly designed cell creates hydrogen on demand. However, there are new design elements to the individual parts making up the cell, and the cell itself has become much larger.

According to Mr. Ley, "Should we be successful in our endeavors, there seems to be an opportunity within the out of warranty commercial market and engines utilizing diesel fuel." Asked about the Company's future, Mr. Ley says, "The Company will continue to research and test the new Hydro-X Assist cell technology. However, while we hope to obtain positive results from the new cell with a diesel engine, we cannot determine the success or viability of the cell until after further testing and an analysis of additional research and development costs. In the interim, we have also been working diligently to identify acquisitions in a variety of fields that can bring the Company immediate sources of revenue."

About Xynergy Holdings, Inc. Xynergy Holdings, Inc. is committed to meeting the world's growing energy needs while also promoting environmentally conscious business practices, sustainability and commerce. Their focus is on promoting global commerce within the realm of a global economy.

Safe Harbor This press release includes statements that constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 (the "Reform Act"). Xynergy Holdings, Inc. claims the protection of the safe-harbor for forward-looking statements contained in the Reform Act. These forward-looking statements are often characterized by the terms "may," "believes," "projects," "expects," or "anticipates," and do not reflect historical facts. Specific forward-looking statements contained in this press release include, but are not limited to: our successful integration of diversified growth companies, impact of the company's expansion plan, and new business development success, future financial results, development and acquisition of new product lines and services, the impact of competitive products or pricing from technological changes, the effect of economic conditions and other uncertainties. The forward-looking statements contained herein involve risks and uncertainties that could cause actual results to differ materially from the expectations contained in any such, forward-looking statements. These risks include, but are not limited to: failure to manage operating expenses or integrate new companies and/or technologies, each of which could have a material impact on our business, our financial results, and the company's stock price. These risks and other factors are detailed in the Company's filings with the U.S. Securities and Exchange Commission and the Pink Sheets. Most of these factors are difficult to predict accurately and are generally beyond the Company's control. Forward-looking statements speak only as to the date they are made and Xynergy Holdings, Inc. does not undertake to update forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements are made.

Contact: Xynergy Holdings, Inc. 305-819-0452