16:20 GMT, October 27, 2009 POMPANO BEACH, Fla. | Cyclone Power Technologies Inc. (Pink Sheets:CYPW) has successfully completed performance tests of its award-winning external combustion engine for Raytheon Integrated Defense Systems (IDS).

The tests demonstrated that Cyclone’s prototype water-cooled Mark II engine achieved thermal efficiencies over 30%, results that exceeded original engineering calculations. Operating at temperatures of 1000°F and steam pressures of 1150 psi, the compact 98 lbs Mark II ran at 2133 rpm and produced 13.4 hp and 33 ft-lbs of torque at a diesel fuel burn rate of 0.8 gal/hr.

“We’re very pleased to complete these tests for our customer,” stated Harry Schoell, CEO of Cyclone. “The Raytheon IDS team has meticulously reviewed our findings and validated our final results. We now look forward to moving our business relationship forward.” The parties are currently in discussions regarding the next phases of this project, the details of which have not been finalized at this time.

The demonstration of these new technologies was in fulfillment of an Independent Research and Development (IR&D) contract from Raytheon IDS signed last year. In February, Cyclone announced the completion of the first stage of testing, which involved running the Cyclone Engine by the combustion of an environmentally friendly monopropellant called Moden Fuel. A team of engineers and technicians from Cyclone, Raytheon IDS, James R. Moden Inc. and Advent Power Systems pioneered, performed and monitored the tests.