AEROMAG Corp. Forms Joint Venture to Manufacture Wind Turbine Generators in China.

Business Editors/Energy Writers

PRESCOTT VALLEY, Ariz.--(BUSINESS WIRE)--Aug. 7, 2001

AEROMAX Corp., Exclusive Distributor for AEROMAG Products,

Will Now Market Chinese and American Made Products Worldwide

AEROMAG Corp. Tuesday announced it has formed a joint venture with Qingdao Wind Energy Generation Equipment Works, Limited, LLC in Quingdao, Shangdong Province in China.

The new company, Qingdao AEROMAG Wind Energy Equipment Works, Co., Ltd., will manufacture wind turbine generators for use in China, the United States and other markets that are seeking to develop alternative energy sources.

This joint venture will initially manufacture the AEROMAG LAKOTA Wind Turbine Generator to be sold by AEROMAX Corp., a sister company that has an exclusive license to market all AEROMAG products. Several larger advanced home power wind turbine generators, scheduled to be released through AEROMAX, will soon follow the LAKOTA.

"We are pleased to find such fine people as the officers and employees of Qingdao Wind Energy Generation Equipment Works," said Lexington Bartlett, president and chief executive officer of AEROMAG.

"Besides being congenial to work with in the formation of our joint venture company, their workmanship is of the highest order and we believe our customers will be very satisfied with the products we manufacture."

On July 20, 2001, AEROMAG proudly raised a U.S. flag at their Qingdao, China facility. The U.S. flag will be flown alongside the Peoples Republic of China flag (center) and the AEROMAG "Revolution in the Wind" Sino U.S. China Joint Venture flag on the right.

The three flags are stationed at the front of the AEROMAG Qingdao facility as part of an initiative from the Qingdao, Jiaozhou City Government who requested this in recognition of the mutual international collaboration and the city's enthusiasm to support the joint environmental technology manufacturing effort.

The Qingdao, Jiaozhou City Government has also been instrumental in providing communications, transportation and logistics assistance in support of the establishment of the factory.

"The joint venture formation is a great opportunity and will provide employment for their skilled labor force while the country is making a transition to a more market-oriented economy," said Bartlett.

"Chinese leaders are anxious to continue to industrialize and to reduce pollution at the same time. Through the LAKOTA, the joint venture company is pointing the way to help provide some of the much needed and cleaner electrical energy."

About AEROMAX

Hybrid energy solutions available from AEROMAX combines the world's most advanced small wind turbine generators, tower kits and battery containment systems with the top name brands in solar panels, inverters, batteries and ancillary component parts.

These products are integrated and can be specifically tailored into a modular and incrementally expandable hybrid renewable energy system configured for specific uses and locations worldwide.

Overall product performance and manufacturing cost breakthroughs combined with state-of-the-art global marketing strategies are the paramount drivers to providing highly reliable, economically competitive wind and solar power generating equipment to the dealer and demand side energy consumer.

Dovetailed to this is the continuing expansion of present production programs and introduction of other related ventures as targets of opportunity are identified. As this symbiotic corporate relationship matures, these revenues will enable AEROMAG to commercialize its wealth of inherent technologies that in turn provide AEROMAX with additional state-of-the-art products to market.