AEC Announces Further Developments On Its Hydrogen Maker.

Energy Editors/Business Editors

LAS VEGAS--(BUSINESS WIRE)--Aug. 25, 2003

Mr. Blaine Froats, Chairman of Alternate Energy Corporation (OTCBB: ARGY) today announced that AEC yesterday successfully completed a hydrogen volume flow test in preparation for running the Astris fuel cell.

Astris requires a certain amount of hydrogen to run its latest fuel cell and AEC has to meet this requirement. AEC has captured and stored certain volumes of hydrogen from its production that will be tested for purity by an independent laboratory. Impurities can be removed, if necessary, with a filtering system.

Upon the completion of the purity testing, AEC will supply hydrogen, on demand, to the Astris fuel cell. It is expected that this could occur within the next two weeks, after which, both the AEC hydrogen production unit and the Astris fuel cell will be available for demonstration to major interested corporations.

The AEC hydrogen production unit produces hydrogen from water utilizing a chemical formulation that will, when combined with the Astris fuel cell, produce electricity at a greatly reduced cost than that of other existing fuel cell systems.

About Alternate Energy Corporation (AEC)

Founded in March 2000, AEC owns patented technologies that enable electric utility companies and large multi-national industrial companies (petroleum, chemical, mining, steel, pulp and paper, manufacturing, etc.) to increase their power output by, in some cases, up to 50% with significant decrease in cost. This is accomplished without increasing the amount of fossil fuel that is used, which provides two additional benefits: less dependency on imported fossil fuels and lower fossil fuel pollution levels. Both the cost and availability of fuel, and protecting the global environment are currently two of the highest profile issues on North American agendas. Our engineered systems are part of the solution and not part of the problem.

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 for the year ended Dec. 31, 2002, and subsequent Forms 10-QSB and 8-K. Actual results may differ materially from management's expectations.