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AEC RETAINS GT DESIGNS TO OPEN PRODUCT DEVELOPMENT CENTER.

Tennessee Facility to be Site of First Product Shipments.

Alternate Energy Corporation (ARGY) announced today that it has retained GT Designs, Inc. and principal owner Ted Buel to make operational the AEC Product Development Center near Oak Ridge, Tennessee. The Center is expected to manage the product development, and manufacturing and certification of AEC's hydrogen production units for alpha product shipments targeted for late 2004.

GT Design's principal has 25 years of product design, fabrication, and user documentation experience. They have designed proprietary products, developed fabrication and presentation drawings, prototypes and user documentation for such companies as Kaiser, Reynolds, Alcan, Alcoa and United Marine.

Pursuant to the agreement, GT Designs will coordinate the development and testing of prototype products and their transition into alpha products. AEC seeks to begin shipment of alpha products by October 2004 to the United States Coast Guard for certification and approval of marine applications. It also seeks to ship alpha products for green energy applications by November 2004, and for commercial back up power applications by December 2004. GT Designs will also supervise the certification of alpha products by the Underwriters Laboratories Inc. (UL), International Organization for Standardization (ISO), National Electrical Manufacturers Association (NEMA), Canadian Standards Association (CSA), and the United States Coast Guard; and as well as work with other appropriate entities to certify and develop the optimal design of the AEC hydrogen production system and its applications.

"Our recently completed financing has allowed us to accelerate our development and production activities," said Blaine Froats, AEC's Chairman. "We are pleased to have Ted Buel as part of the AEC team with his decades of hands-on experience. We chose to locate our Product Development Center in the Oak Ridge Tennessee area based on the expertise and depth of available resources that exist there, which will best support the mass deployment of our product."


About Alternate Energy Corporation (AEC):

AEC is an energy company committed to delivering innovative, practical and environmentally responsible fuel and power solutions to consumer, commercial and government markets. AEC owns an affordable, on-demand, high-grade hydrogen production process that is expected to expedite the transition from fossil fuels to the hydrogen economy. AEC's inexpensive hydrogen production process has been recognized for its ability to overcome two major industry obstacles - affordability and safety. The hydrogen production system leverages a proprietary chemical process that yields fuel-cell-quality hydrogen from fresh or salt water, with no known harmful by-products. AEC's achievements are already profiled in a variety of "green energy" publications and numerous pervasive press outlets. The company has been covered in Fuel Cell Today, Solar Daily, Live Power News, Hydrogen & Fuel Cell Investor, Fuel Cell/Alternative Energy News, the Canadian Centre for Energy, and a variety of notable news wires. AEC's test results have also been featured in such widely recognized journals as CNN Money and the Toronto Star.

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.


Additional information is also available on the company's website at www.cleanwatts.com


SOURCE: Alternate Energy Corporation

Alternate Energy Corporation
Suzanne Brydon, 519-620-2623
or
CEOcast, Inc.
Cormac Glynn, 212-732-4300

http://alternateenergycorp.dbdta.net/newsroom.asp?id=newsroom.020604a