In this paper, we attempt to suppress or generate chaos in the newly presented Lu system using parametric perturbation. We find that this method not only suppresses chaotic behavior, but also induces chaos in non-chaotic parameter ranges. When we add the small sinusoidal perturbations, the system becomes four-dimension. From the calculation of Lyapunov exponents, we discover hyperchaos in the perturbed system, which has not yet been reported before. (c) 2005 Elsevier Ltd. All rights reserved.