PARTICLE DRILLING TECHNOLOGIES ANNOUNCES YEAR END RESULTS

• Company secures a new agreement with a major oil & gas company;
• Improvements to the Particle Injection System now complete;
• Financial Advisor retained to seek all strategic alternatives, including additional funding;
• Sale of frac pump completed providing additional liquidity

Houston - December 15, 2008 As previously disclosed, Particle Drilling Technologies, Inc. (NASDAQ: PDRT) ("Company") has entered into an agreement whereby it will initially receive $350,000 to fund the design, manufacturing and testing of a new 6 1/2"-size PID bit. This agreement is with a major, multi-national and fully integrated energy company and is for an application in one of its drilling areas in the United States where it will be used for drilling intervals above 10,000 feet, which are shallower than the depths drilled during Company's previous field trials. The new smaller size bit is to be designed to address a particular drilling application which could lead to additional cooperation between the two companies. The design of these PID bits is underway and they should be ready for internal testing in the next two or three months with a field trial to follow. More details on this contract are set forth in the Company's Current Report on Form 8-K filed with the Securities and Exchange Commission on December 8, 2008.

In addition, since the last field trial results were announced in mid-September, the Company has made various modifications to its surface equipment that are intended to improve the system's performance under a broader range of fluid properties encountered in the field.

As previously announced, the Special Committee of the Board of Directors has retained Parks Paton Hoepfl & Brown, LLP to serve as the Special Committee's financial advisor in connection with its evaluation and review of any potential strategic alternatives, including a strategic industry joint venture, technology licensing arrangement, sale of the company and any other available alternatives. We have yet to determine which particular strategic alternative to pursue, if any, and do not intend to disclose developments with respect to this evaluation unless and until the Board of Directors has approved a course of action or otherwise deemed disclosure appropriate.

Lastly, the Company completed the sale of its frac-pump which is no longer a core-asset needed as a component to the PID injector system. The Company has now rented a more cost-effective mud pump for testing purposes.

Jim B. Terry, the Company's President and CEO stated, "We have been focused on readying our surface equipment to return to the field and simultaneously seeking industry support for our development efforts. We believe the contract we secured represents yet another meaningful industry endorsement of our efforts and also demonstrates the potential value that end users see in our technology. With the assistance of the Special Committee's financial advisor, we continue to evaluate and pursue any potential strategic alternatives that are in the best interests of our stockholders.

The Company also announced its financial results for the fourth quarter and for the year ended September 30, 2008. The financial results reflect the Company's status as a development stage company during fiscal 2008, generating no revenue. The following is a summary of the year end results:

A telephonic replay of the conference call will be available through December 22, 2008 and may be accessed by calling 303-590-3000 and using passcode 11123339#.  A web cast archive will also be available at www.particledrilling.com, on the "Investor Relations" section of the Company's website, shortly after the call and will be accessible for approximately 90 days. For more information, please contact Donna Washburn at DRG&E at 713-529-6600 or email dmw@drg-e.com.

About Particle Drilling Technologies, Inc.
Particle Drilling Technologies, Inc. (NASDAQ: PDRT) is a development-stage oilfield service and technology company commercializing its patented and patent-pending Particle Impact Drilling system. The company's technology is designed to enhance the rate-of-penetration function in the drilling process, particularly in hard-rock environments. It is headquartered in Houston, Texas. For more information, visit: www.particledrilling.com.

Safe Harbor Statement
Certain statements in this press release that are not historical but are forward-looking are subject to known and unknown risks and uncertainties, which may cause PDTI's actual results in future periods to be materially different from any future performance that may be suggested in this press release. Such risks and uncertainties may include, but are not limited to, PDTI's need to raise equity capital and its ability to obtain equity financing on acceptable terms, if at all, a severe worldwide slowdown in the energy services sector, working capital constraints and the ability of PDTI to successfully complete any strategic alternative. Further, PDTI is a development stage company that operates in an industry sector where securities values are highly volatile and may be influenced by economic and other factors beyond PDTI's control such as announcements by competitors and service providers.