According to AEC CEO Blaine Froats, "This test set a new standard for fuel and hydrogen economics. Never before has hydrogen been produced on-demand so inexpensively and then immediately used to power a fuel cell of this kind. We (AEC & Astris) have an opportunity to revolutionize the traditional power industry because of our combined technology's affordability, reliability and accessibility to the consumer."

Last month, AEC announced that it had signed a letter of intent with Astris. AEC has planned to work with Astris to jointly offer complete systems that will supply a home or a business with ultra-clean, reliable and affordable electric power. Tests of AEC's low-cost hydrogen production process have been on-going since last month. The purpose of these tests has been to measure the purity and volume of hydrogen that the process produced, ensuring that it met acceptable standards required to run the Astris alkaline fuel cell. The positive conclusion of these trials last week has led up to the successful live test last Friday.

Since AEC's affordable hydrogen process effectively brings hydrogen-fueled energy sources to the common market, the technology is regarded a major breakthrough in the alternate energy sector by many industry watchers.

Unlike grid power, which has seen its reliability called into question lately, off-grid solutions like fuel cells give residential and commercial users direct control over their own energy production. Like the cellular telephone industry, the first customers were those who wanted services without being restricted by cords or cables. However, it wasn't until the pricing became competitive that usage of the service became universal. AEC predicts a similar trend for off-grid power. By bringing the costs down to where they can aggressively compete with on-grid electric service, consumers get their first real chance to make a choice.

"People are getting more comfortable with cutting the umbilical chord every day," says Live Power News Editor Jack Bryar. "You see it in every direction you look. In the past people felt more comfortable when there was a wire connecting them to something. Today people see that all that those wires do today is hold you back. Today everyone has cordless phones, wireless keyboards, wireless computer controllers, satellite TV receivers, and don't forget the ultimate wireless device, the TV remote. Electric power without wires is just a natural step."

With the live-test milestone having been achieved, AEC is now quickly moving forward on two parallel initiatives - making the unit smaller for the consumer market and the implementation of diagnostic controls.

"Although our hydrogen production unit is already quite small - currently about half the volume of an air conditioning unit, we are confident that we will be able to expedite a further significant reduction in size," said AEC's Jurgen Volling, P. Eng, Vice President Application Engineering for the hydrogen program. "We are also working on integrating diagnostic monitoring equipment into the unit to ensure a consistent volume of hydrogen purity required for the fuel cell during operation," Mr. Volling stated.

About Alternate Energy Corporation (AEC):

Founded in March of 2000, AEC is a leading developer of cost-effective, environmentally responsive fuels and electric power solutions. The company's mission is to contribute to an environmentally sound, alternative energy future. The company is the patent holder of power recovery and fuel-cell-quality hydrogen production technologies for residential, commercial and industrial use.

Statements herein express management's beliefs and expectations regarding future performance and are forward-looking and involve risks and uncertainties, including, but not limited to, the ability to negotiate outstanding prior debts of acquired companies; properly identify acquisition partners; adequately perform due diligence; manage and integrate acquired businesses; react to quarterly fluctuations in results; raise working capital and secure other financing; respond to competition and rapidly changing technology; deal with market and stock price fluctuations; and other risks. These risks are and will be detailed, from time to time, in ARGY's Securities and Exchange Commission filings, including Form 10-KSB 10-QSB and 8-K. Actual results may differ materially from management's expectations.

Contact:
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Stephen Heiser, 617-327-2795
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or
Alternate Energy Corporation
Jason Froats, 416-778-1641
jason@cleanwatts.com
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