AEC Takes Delivery of First E8 Fuel Cell Generator From Astris Energi

2.4-kW generator has an electrical efficiency greater than 50%, higher than any in its class. Plans underway to couple Astris' E8 Generator with AEC's low-cost, small-scale, proprietary, portable Hydrogen technology that produces fuel cell pure hydrogen gas on demand, from water.

AS VEGAS -- Alternate Energy Corp. (AEC) announced today that it has taken delivery and completed training on the first Model E8 Portable Power Generator from Astris Energi Inc.

The E8 Generator is the latest in a series of Astris power generators driven by Astris' alkaline fuel cell technology. Nominally rated at 2.4kW and providing 48 VDC power at 50 amperes of current, the E8 is targeted at stationary applications such as uninterrupted power supply, backup applications for commercial and military users, and emergency site power. Its electrical efficiency is greater than 50%, a figure unequalled by any other device in its class, and several times higher than the efficiency of conventional gas generators. The E8 Generator contains two 1200W fuel cell stacks and is the first generator powered by Astris' POWERSTACK™ MC250 fuel cell modules.

Plans are underway to couple Astris' E8 Generator with AEC's low-cost, small-scale, proprietary, portable Hydrogen technology that produces fuel cell pure hydrogen gas on demand. AEC utilizes readily-available, bio-compatible elements that produce hydrogen with a purity rating of 99.9% - with only water and oxygen as by-products. The resulting fuel cell power pack will be reliable, economical and environmentally friendly. The combined AEC - Astris power pack is aimed at the many expanding markets for high-quality, clean power on an uninterrupted basis. These markets include stationary industrial and residential back-up applications in data centers, telecommunications installations, hospitals, construction sites, emergency power support, and recreational segments.

Currently, AEC is testing the power pack, and is scheduling a series of demonstrations starting in late February 2005. AEC's purchase order to Astris calls for an additional five Model E8 units to be delivered to AEC in stages throughout 2005, subject to performance evaluation of the first unit.

Blaine Froats, Chairman and C.E.O. of Alternate Energy Corp. said: "AEC will be able to demonstrate this joint power pack for electricity generation to a wide variety of potential customers interested in stationary industrial and residential primary and back-up power applications. Many of these are global, and we have started to schedule demonstrations with several of these organizations that span many markets."

Jiri K. Nor, Astris Energi's President and C.E.O. said: "Our AFC technology is ideally suited to the stationary and portable power markets. It is cost efficient, reliable and clean. The Model E8 in combination with AEC's hydrogen production technology will ensure a quiet, emission-free power supply that can be operated both indoors and outside, making it ideal for a wide variety of commercial applications. The success of this project could drive product demand and advance phase one of our pilot-scale production of the POWERSTACK™ MC250, which is now underway at our affiliate in the Czech Republic, to full-scale production."

Alternate Energy Corporation (AEC) intends to provide a hydrogen fuel system that has mass-deployment economics and provides small-scale, on-demand distributed generation of electricity. The Company anticipates scheduling product demonstrations with key strategic partners in the first quarter of 2005, then shipping initial hydrogen production and electricity generation systems later in 2005. AEC's proprietary discovery in metallurgy permits a small-scale unit to generate hydrogen from an aqueous solution through a "green" system at a price competitive with the current fossil fuel kWh cost of energy.