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HyperSolar Releases Letter to Shareholders - Tim Young

http://www.marketwired.com/press-release/hypersolar-releases-letter-to-shareholders-otcqb-hysr-1980494.htm

CEO Addresses Company Growth and Increased Market Demand From 2014

SANTA BARBARA, CA--(Marketwired - January 06, 2015) - HyperSolar, Inc. (HYSR), the developer of a breakthrough technology to produce renewable hydrogen using sunlight and water, today released a letter to its shareholders from company CEO Tim Young.

The letter reads in its entirety:

Dear Shareholder,

Good morning and Happy New Year,

2014 was a fantastic year not only for HyperSolar, but also for the entire hydrogen fuel technology industry. As we begin 2015, we want to share a few of the highlights from 2014 about our company, as well as our industry:

University Research Support.

This year, HyperSolar made two significant announcements related to the research teams currently working to develop and commercialize HyperSolar's renewable hydrogen production technology. In November, HyperSolar announced the addition of the University of Iowa, a university that has earned the reputation for pioneering renewable energy technologies and sustainable practices, to its research team. The Iowa program will focus on increasing the voltage required to effectively split water into hydrogen and oxygen. In December, the Company announced that it had extended its sponsored research agreement with the University of California, Santa Barbara. The research program at UCSB has played a critical role in leading the Company's R&D efforts, and will continue to focus on the technology's production aspects and cost models for scaled up systems. HyperSolar is fortunate to have two nationally recognized programs working together to advance our technology towards commercialization.

Technological Advancements.

While HyperSolar announced several technology-focused updates throughout the year, two in particular are pivotal as the company continues to advance. The first was the breakthrough that eliminated an expensive step in the hydrogen-oxygen separation process using a novel reactor design and system architecture. We believe that the elimination of this costly and dangerous aspect of the process will greatly reduce the overall system cost and increase overall efficiency. The second breakthrough, and one of great significance, was reaching the 1.25 volt milestone, exceeding the critical 1.23 volt threshold required for artificial photosynthesis to split water into hydrogen and oxygen using only natural sunlight. The accomplishment represents the first technology to do so in a real-world environment, using an inexpensive but efficient solar absorber. Future development efforts are chiefly focused on reaching 1.5 volts, the voltage needed to commercialize hydrogen fuel production in most real-world systems.

Growth of the Hydrogen Fuel Market.

2014 was the most successful year to-date, with respect to advancements in the hydrogen fuel industry. The market demand in the industrial sector grew significantly, as internationally known brands such as Wal-Mart, FedEx, Proctor & Gamble, Airbus, Ace Hardware, as well as utility companies and others, committed to the implementation and/or funding of hydrogen fuel technology. Strategic partnerships between companies of this stature and hydrogen innovators such as Plug Power, Ballard Power Systems, and FuelCell have created optimism throughout the industry, as technology potential has become reality. From a consumer standpoint, hydrogen has successfully reached the automobile space, as the first hydrogen fuel cell vehicle (FCV) reached consumers in Japan, via the Toyota Mirai. In addition to Toyota, other major auto manufacturers including Honda, Hyundai, Mercedes Benz, and others have committed to developing FCVs, with some expected for release by the end of 2015. These announcements have created significant interest at the consumer level, which HyperSolar believes will drive widespread adoption and spur technological advancements.

Support in Funding.

In addition to the auto manufacturers and corporations listed above, several governments and corporations from around the world committed to funding hydrogen fuel technologies and projects. Japan laid out a timeline for objectives and actions over the next 25 years to commercialize fuel cell vehicles and hydrogen energy applications; Air Liquide announced the planned installation of four hydrogen filling stations in Denmark; and UK researches from the Science and Technology Facilities Council announced a breakthrough in hydrogen storage which they believe will make the process more cost effective for commercialization. In the US, the California Energy Commission awarded $27.6 million to FirstElement Fuel to develop a hydrogen-fueling network to enable California hydrogen FCV drivers to drive and fill their vehicles by the end of 2015. This infrastructure will be necessary to support consumer demand as FCVs reach drivers in the US.

Throughout 2014, HyperSolar stressed the importance of understanding "green hydrogen" vs. "brown hydrogen" -- a necessary distinction as hydrogen fuel solutions increase in demand. Brown hydrogen, most of today's commercially available hydrogen, is made using natural gas, a fossil fuel, which emits carbon into the environment when converted into useable fuel. By comparison, green hydrogen is completely renewable, developed from sources such as wind or solar, resulting in a much cleaner process in which the only by-product is water. HyperSolar technology, which uses a submersible solar powered particle that mimics photosynthesis, is completely renewable, increasing its marketability as regulators seeks to reduce the impact of fossil fuels in the hydrogen fuel production process.

At the outset of 2015, we believe that our company is poised to become a significant player within the hydrogen fuel industry. Our renewable technology is developed with the goal of being able to be implemented at or near the point of use, such as behind a retail facility or a car charging station. We believe HyperSolar technology represents a cost effective and efficient solution that can be implemented across many verticals and fuel dependent applications.

We look forward to achieving great things in 2015, and working to provide constant communications to shareholders and partners alike.

Thank you for your continued support, and have a great New Year.
Regards,

Tim Young,
CEO, HyperSolar

HyperSolar's technology is based on the concept of developing a low-cost, submersible hydrogen production particle that can split water molecules using sunlight without any other external systems or resources -- acting as artificial photosynthesis. A video of an early proof-of-concept prototype can be viewed at http://hypersolar.com/application.php.