AEC Announces Appointment of New Senior Technical Consultant.

LAS VEGAS -- Alternate Energy Corporation (OTCBB:ARGY) today announced Mr. Dusan Martinovic, B.Sc., M.Sc., P. Eng., MBA, has joined AEC as a Senior Technical Consultant, to manage the rollout of the hydrogen production development into the ("alpha") product manufacturing phase. Working with the management team out of AEC's Burlington Ontario Head Office, Martinovic will add his many years of mechanical engineering experience and diversified background with metallurgy, chemistry and manufacturing to help launch AEC's products.

"To further refine our hydrogen technology to the point where we can satisfy the needs of a wide spectrum of power applications, AEC identified and found someone with direct technical expertise and manufacturing resources. Dusan brings tremendous hands-on experience, knowledge and training in mechanical design, engineering and manufacturing," said Mr. Blaine Froats, Chairman and CEO of AEC. He went on to say "Mr. Martinovic's experience, specifically in chemistry, is tremendously valuable for AEC as we develop our hydrogen technology system for specific applications, map out the manufacturing design, commence product production plans, and finalize demonstration schedules with potential partners and customers for early 2005. Dusan and his team were instrumental in the recent successful conversion of a small internal combustion engine to run on hydrogen at our facility in Burlington, Ontario."

Dusan Martinovic has a Bachelors' and Masters' in Science (Mechanical Engineering), received his Engineering degree at the University of Belgrade in 1977, and is a licensed Professional Engineer in both the U.S. and Canada. He also holds an M.B.A., and has numerous years of successful product development and manufacturing experience in both Eastern Europe and Canada, at such firms as Batten Technologies-StrataFlex, Beck Electric (a division of NOMA Companies), Honeywell and recently with his own firm Dumart Engineering Services.

Since 1989, Martinovic has worked as Plant Operations Senior Manager, Production Quality Engineer, and has hands-on experience in design and mechanical engineering projects, energy product manufacturing planning, plastic extrusion and injection molding, mould and tool manufacturing, Quality Control and plant operations.

About Alternate Energy Corporation

Alternate Energy Corporation (AEC) is energizing the hydrogen economy. AEC is the first company to provide a hydrogen device that has mass-deployment economics and provides small-scale, on-demand distributed generation of electricity. AEC's patent pending discovery in metallurgy permits a small-scale unit to generate hydrogen from water through a "green" process at a fraction of the fossil fuel kWh cost of energy. AEC believes its product can have a revolutionary impact on the energy industry. Additional information is also available at the company's website at www.cleanwatts.com

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 AEC's Securities and Exchange Commission filings, including Form 10-KSB 10-QSB and 8-K. Actual results may differ materially from management's expectations.

Alternate Energy Corporation (OTC Bulletin Board:ARGY)