AEC Takes Step Towards Listing On Recognized Exchange.

LAS VEGAS -- Alternate Energy Corp.(AEC) (OTCBB:ARGY) announced today that the Securities and Exchange Commission has settled its litigation brought against the company, when it was known as COI Solutions and under previous management. This settlement clears all past litigation with the SEC and removes a major barrier for the newly-managed AEC in its goal to become listed on a recognized exchange.

In 2002, the SEC brought suit against COI Solutions Inc. and one of its former officers. Subsequent to the company's acquisition of the assets of Alternate Energy Corporation in 2003 and complete management change, the SEC agreed to settle the litigation. AEC neither admitted nor denied the allegations of the SEC's complaint as part of the settlement. The settlement was entered by the District Court for the Southern District of Florida and included an injunction enjoining the company, its officers or directors from violating securities laws in the future.

"We are very pleased that the SEC has decided to settle this matter with the company," said Blaine Froats, Chairman of AEC. "It should be made clear that this litigation occurred under previous management and in no way did it ever question the actions of current management. No one from former management is any longer associated with the company."

This settlement clears the way for AEC to make application to a recognized exchange for listing. This was not possible as long as the lawsuit remained outstanding against the Company.

Mr. Froats went on to say, "This formally ends the COI chapter in the company's history, completes the transformation from COI Solutions to Alternate Energy Corp., and frees the company to pursue its hydrogen business."

About Alternate Energy Corporation (AEC) - www.cleanwatts.com:

Alternate Energy Corporation (AEC) intends to provide a hydrogen fuel system that has mass-deployment economics and provides small-scale, on-demand distributed generation of electricity. The Company anticipates scheduling product demonstrations with key strategic partners in the first quarter of 2005, then shipping initial hydrogen production and electricity generation systems later in 2005. AEC's proprietary discovery in metallurgy permits a small-scale unit to generate hydrogen from an aqueous solution through a "green" system at a price competitive with the current fossil fuel kWh cost of energy.

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)