LAS VEGAS, Sept. 10, 2003 -- Alternate Energy Corp. announced the results of the company's highly anticipated hydrogen purity testing. AEC's low-cost hydrogen production system will help enable residential and commercial customers generate their own electricity off-grid at on-grid competitive prices.

Affordable hydrogen and an affordable fuel cell system are the only necessary components to grid-free power that compares in price and quality to grid power. Just as the cell phone industry has freed residential and business telephone users from copper wires run to their homes, AEC is working to free these same customers from utility power.

According to AEC CEO Blaine Froats, "The results of the first purity test were most pleasing as only one unacceptable impurity existed at low levels. From an analysis of the preliminary results, our engineering staff has concluded that the low-level impurity originated from air contamination through a leakage and not from the process itself."

AEC's second test was conducted under more controlled conditions, which reduced this impurity by approximately 95%. A further impurity reduction of approximately 4% is required before AEC can run a fuel cell and proceed with line testing. Froats added that, "We are very confident that only fine adjustments need to be made to eliminate the remaining small percentage of this impurity and are looking forward to the joint testing phase."

Last Month the company announced that Astris Energi Inc., a provider in alkaline fuel cell technology, had signed a Letter of Intent with AEC. The proposed joint venture plans to combine these fuel cell and hydrogen technologies to produce and sell complete stationary electric power systems for the vast household and business markets.

Tests of AEC's low-cost hydrogen production process have been on going since last month. The purpose of these tests is to measure the purity of hydrogen that is produced by the AEC process, ensuring that it meets the purity standards required to run the Astris alkaline fuel cell. An independent laboratory is administering all testing to ensure confidentiality and un-biased results. AEC's meeting of Astris' hydrogen input (purity and volume) standards will provide a low-cost supply of hydrogen for the fuel cell company. This is expected by some to be a breakthrough in the industry, as AEC's inexpensive source of hydrogen will help make the fuel cell an economically viable energy solution for all.

About Alternate Energy Corporation (AEC):

Founded in March of 2000, AEC is a 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.
Additional information is also available at the company's website at www.alternateenergycorp.com.