Cyclone Power Technologies, Inc. (fka CYPW)

[BuddyWhazhizname]

Dear Shareholders:

Cyclone Power has been working very diligently on its primary focus of getting product to market. We completed Beta testing and have made large strides towards the production of the Mark 1 (5.5 HP constant duty rated) and Mark 3 (22HP constant duty rated) engines. Our prime manufacturers and integrators will have final pricing available soon so that Cyclone can begin taking purchase orders for generators powered by the all fuel Cyclone engines. Cyclone's prime integrator for an all fuel generator has stated they will have product ready for delivery in Q2 of 2016. There are two additional OEM's ready to purchase the engines for integration into their products. One is an ATV (all-terrain vehicle-US based) and the other is solar (European).

- They've been working very diligently on getting product to market since 2004.
- Over the years they have completed "Beta testing" many times. Notice there are no videos of operating engines.
- Their "manufacturers" will have detailed pricing for a product who's design isn't finalized yet.
- Their prime geenerator contractor is a company that assembles, sells and repairs diesel generator sets. They will be ready in Q2, but their generator will be awaiting a working Cyclone engine.
- There have been OEMs ready to purchase Cyclone engines for many years. Remember Revgine? Renolovia? Great Wall? Phoenix Power? Republic Energy? 3R in Denmark? That "leading turbine integrator in Canada" with no website? No demonstrations of working engines, no idea of operating costs or reliability, no idea of pricing, but those two new OEMs can't wait to buy.

We are still pursuing this demand for payment and feel this is in violation of the separation agreement which includes their license with Cyclone.

Management is continuing its efforts to channel resources to revenue-producing projects. With the projected royalty streams from WHE-GEN,

Sounds like they are about to cancel the license. Good luck collecting royalties then. Even if they actually sell anything.

Completion of the Combilift contract will allow us to collect $300,000. We are pursuing invoice financing to complete this order. The project is in the final process of the 50-hour testing, and we are working toward a 2015 delivery. This effort was delayed due to the resources going to development of the WHE engine and overhead expenses for SEC compliance. Combilift's owner will be here this month, to assess our progress.

The original promised delivery date of those engines was July 2012. They've been in their "final" 50 hour testing for years now. Cyclone has never publicly demonstrated the Mark 5 engine powering anything. The greatest achievement demonstrated is the engine turning under its own power for less than a minute.

Funny, there was no announcement about how pleased Combilift's owner was with the engine progress.

The decision has been made to submit a Form 15 with the SEC allowing Cyclone to report and file unaudited financials on a different venue.

This means the existing CYPW stock will be delisted. Good luck selling then.

3R A/C, a China based OEM, has reorganized and is now known as 3R Denmark.
They have agreed to our original plan of bringing three of their units, two of their engineers, and their electronic technology to the Cyclone facility.

Funny, in August 3R was a Danish company with a potential Chinese investor (who turned out to have no money). Cyclone already had a "binding" agreement, and at that time they said

In phase one 3 R A/C will pay for our lead engineer inventor, Harry Schoell, to go to their manufacturing facility that has 20 staff engineers, and fast track the production of the Mark 3 engine and the integration with their furnace.

Now 3R is down from 20 to 2 engineers, and rather than using their manufacturing facility, they are going to use what the Schoell Marine building provides. (Anyone able to confirm the rumor that Cyclone's milling machine and lathe were leased and have been repossessed?)

No photos of the Danish engineers on their Facebook page. Wonder how that project is coming?

Cyclone has identified and has LOI's with two major international Military suppliers. The foremost factor bringing them to Cyclone is the "One Engine All Fuel" technology.

The weird thing here is that NATO (which is the U.S. and our allies) adopted the "single fuel concept" back in 1988 and run everything on JP-8. Which countries is Cyclone dealing with? It sure isn't our friendlies.

Additionally we had to increase our authorized common stock levels to accommodate the convertible contracts that obligate the Company.

Cyclone had 2 billion authorized shares before this announcement. What was the increase? To at least 5 billion, I'll bet.

Of course, the Cyclone website hasn't even been updated to show the authorized shares went from 900,000,000 to 2,000,000,000. Why would we expect them to tell shareholders what the A/S and outstanding are now?

So, yeah, Cyclone provided some news two months ago, but it's just the same old spin and fantasy as always. Engines will be in production in 6 months. Customers lined up to buy. Big deals signed. Etc., etc.

And just as always they don't give any details about the actual state of their engines or a demonstration of an engine powering even a go-kart.

Remember Frankie's claims last summer about soon filing unaudited financial statements? How hard would that be, and why hasn't it happened?