AVEC Corporation (fka AVEC)

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Press Release Source: Axial Vector Energy Corporation
AVEC Sells First License to Produce Engines in Malaysia with Premier Group of Kuala Lumpur

* On Tuesday June 9, 2009, 7:16 am EDT

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DUBAI, United Arab Emirates--(BUSINESS WIRE)--Axial Vector Energy Corporation ("AVEC") (Pink Sheets: AXVC - News) (Frankfurt: BAE1 - News) announced today it has sold its first license to produce its multi fuel "work horse engines" in Malaysia.

Premier Group (http://premiergroup.com.my) with Headquarters in Kuala Lumpur, Malaysia signed the exclusive license agreement, which covers Malaysia, Indonesia and parts of Southeast Asia and has agreed to produce a minimum of 5,000 workhorse engines to be configured for palm oil use only. The agreement calls for a non-refundable fee of $500,000 dollars as well as a durability pilot site for 5,000 hours using palm oil, which is funded also by Premier.

On completion of the durability testing, Premier is obligated to provide contract production in SE Asia for the engines or may opt to produce its own production facility.

Further milestone payments of $500,000 at completion of technology transfer to the production facility and $1,000,000 at start up of the production facility and an additional $1,000,000 when the first engine is completed.

After the first 500 engines are produced, AVEC will receive $2,000 per engine royalty on a perpetual basis. AVEC has agreed to provide the first right of refusal to purchase the continuing royalty should it decide to sell its forward revenue stream. As part of this agreement, Premier shall also receive a first right of refusal to license AVEC electric motors or coreless generators after the initial payments of $3,000,000 are complete.

Rahim Mahmud, Managing Director of Premier Group, stated, "We are very pleased to be the first licensee to be able to produce this extraordinary engine. The enormous torque band allowing operation without a transmission and its ability to run on Palm Oil only or many other fuels creates an ideal situation for our country and most of Southeast Asia. As the world's largest producer of Palm Oil, our country has enormous ability to use these engines for very low cost power using "non fossil fuel". We believe this sets the standard for the future of clean power without hydrocarbons and we will be bringing officials of the Malaysian Government to the AVEC Technology Demonstration in Virginia Beach, USA on July 14th."

Ahmed Khalifa, AVEC Chairman, stated, "This license and the revenue received under it represent what we believe will be the first of many revenue streams in 2009. Mr. Mahmud's background in Oil and Gas and their company's ability to deploy the engines using value added Palm Oil will be very profitable for all and provide a springboard of commercial credibility which can then be expanded to other areas of the world."

About Axial Vector Energy Corporation

Axial Vector Energy Corporation (AVEC) is a global solutions provider that owns, develops, invest in and licenses revolutionary technologies including, internal combustion engine and electric power generator technologies that have unlimited potential in military, industrial and commercial applications. AVEC and its partners are positioned to become unrivalled leaders in international engine and energy markets with technologies that produce more efficient, cost effective, environmentally sensitive and versatile solutions for use in a wide variety of important applications around the world.

Forward-Looking Statements

From time to time, the Company may issue forward-looking statements, which involve risks and uncertainties. This statement may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as actual results could differ and any forward-looking statements should be considered accordingly.

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