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Monday, 05/16/2011 12:08:48 PM

Monday, May 16, 2011 12:08:48 PM

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AVEC Engine Licensee Wins US Navy Phase II SBIR Contract for New Marine Engine
4 hours 7 minutes ago - Marketwire via Comtex
Marketwire
AVEC Corporation ("AVEC") (PINKSHEETS: AVEC) (FRANKFURT: BAE1) announced today an AVEC licensee is the winner of 2011 SBIR Phase II to increase engine efficiency while reducing engine weight. Most diesel marine engines are based on industrial engines with little regard to total weight or size. Phase II SBIR award winner EngineTec, Inc., will further advance the linear drive engine concept. Douglas Hahn, president of EngineTec, Inc., has been a technical consultant for AVEC for the last five years and his team was instrumental in bringing the AVEC Workhorse engine to the demonstration phase. It was this same technology that gave Douglas Hahn the idea to reduce size and weight for military applications.

From USN Phase II SBIR Award Detail Abstract:

"By reducing the propulsion weight, the craft will be able carry more extensive payloads. The three engine choices are diesel, gasoline, and turbine. Current diesel engines don't meet the weight goal, gasoline engines are not an option due to fleet requirements and turbine engines have unacceptable thermal issues. However, a novel engine, the Linear Power Transmission (LPT) engine has the greatest potential to meet the 1lb/hp goal. The original engine design received FAA certification in the 1950s, weighed 237 lbs and produced 200 hp. In this effort, we propose to build and test an innovative multi-fuel marine engine, based on the LPT (currently in production for gensets). Project goals include an engine design that exceeds 500 HP with a weight of 480lbs with low fuel consumption."

About AVEC Corporation AVEC Corporation (AVEC) is a Nevada Corporation and global solutions provider that owns, develops, invests in and licenses revolutionary technologies including solar, wind and geothermal alternative energy systems. It also owns and licenses multi fuel internal combustion engines 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 green 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.

Safe Harbor Statement This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements include, among others, all assumptions, expectations, predictions, intentions or beliefs about future events. You are cautioned that any such forward-looking statements are not guarantees of future performance and that a number of risks and uncertainties could cause actual results of the Company to differ materially from those anticipated, expressed or implied in the forward-looking statements. The words "believe," "expect," "anticipate," "project," "targets," "optimistic," "intend," "aim," "will" or similar expressions are intended to identify forward-looking statements. All statements other than statements of historical fact are statements that could be deemed forward-looking statements. Risks and uncertainties that could cause actual results to differ materially from those anticipated include risks related to new and existing products, product defects and any related product recall; any projections of sales, earnings, revenue, margins or other financial items; any statements of the plans, strategies and objectives of management for future operations; any statements regarding future economic conditions or performance; uncertainties related to conducting business in China; any statements of belief or intention; any of the factors and risks mentioned in the "Risk Factors" section of our Annual Report on Form 10-K for the year ended December 31, 2007 and any subsequent SEC filings. The Company assumes no obligation and does not intend to update any forward-looking statements, except as required by law.

For further information, please contact:

Samuel Higgins
Chairman
AVEC Corporation
Telephone: +9714 887 5351
www.aveccorporation.com
info@aveccorporation.com

Jebel Ali Free Zone
LOB21- F07
Dubai, United Arab Emirates


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