Advanced Engine Technologies Inc. Unveils Generation Three OX2 Engine at Annual Shareholder Meeting.

LOS ANGELES -- Advanced Engine Technologies Inc., (Pink Sheets:AENG) reports today that it has successfully completed its Annual Meeting of Shareholders where the company unveiled its new design level three OX2 engine along with its newly developed 30 Kw Variable Speed Generator. Both developments were supported by a detailed engineering update given by AET Engineer Michael Edwards.

The OX2 engine was demonstrated in the company's dyno-cell test lab and achieved approximately 202 lb/ft of torque and 25.8 horsepower at an operating speed of 670 RPM. "This third generation OX2 engine has demonstrated the best operating performance and mechanical reliability to date," says John Luft, the company's Chief Operating Officer. "The AET engineering staff has overcome many development hurdles in achieving what we now consider AET's first commercial bound OX2 engine."

Along with a very successful OX2 engine showing, was a demonstration of AET's 30 Kw Variable Speed Generator, powered by a General Motors 4-cylinder industrial engine. The AET 30 Kw Variable Speed Generator demonstrated its range of power and performance while only adding an additional twelve inches to the overall OX2 footprint, dramatically smaller than its commercial generator industry counterparts.

"This latest development cycle has broadened our thinking, and as a result is expected to give AET multiple products to offer consumers," says Luft. "In addition to a stand alone OX2, we expect to offer our new generator in a stand alone application, powered by a conventional engine or AET's OX2."

The OX2 is a 4-stroke, 1.1-liter internal combustion engine that is 17-inches in diameter with a length of 13-inches and a total weight of 200 pounds in normally aspirated form. The compact engine weighs 75 percent less than and is half the size of traditional internal combustion engines. In addition, it offers the flexibility of being able to run on a variety of fossil fuels including gasoline, diesel, natural gas, liquid propane or methane. In addition, with far fewer moving parts than traditional engine designs, the OX2 engine offers significantly lower maintenance costs and a longer useful life than traditional internal combustion engines.

With its expected higher power-to-weight ratio, multi-fuel capacity and anticipated low emissions and high fuel efficiency, the OX2 has a practical - and much needed - application in the commercial and industrial generator markets. Additional future applications may include marine, light-duty farm and construction equipment, light aircraft, and the hybrid electric vehicle market. However, the near term focus remains electrical generator applications.

Investor inquiries can be directed to the company at [phone]. To update the investment community and all interested parties about the progress of the OX2 engine, Advanced Engine Technologies maintains a company web site at www.ox2engine.com.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995

This release may contain forward-looking statements involving risks and uncertainties that may cause actual future events or results to differ materially and adversely from those described in the forward-looking statements. Important factors that may cause such a difference for AET include, but are not limited to, whether our engine products are made viable, whether a market for our products develops, our ability to retain key management, our ability to hire and retain the technical personnel necessary to build our products, the availability of funding for future operating requirements, our ability to effectively predict or react to rapid technology changes that could render our products obsolete, product development delays, dependence on suppliers, our potential exposure to product liability and other tort claims if our products fail, our ability to protect our intellectual property, intellectual property disputes, and other factors discussed in AET filings from time to time with the Securities and Exchange Commission. AET cautions that the foregoing list of important factors is not exclusive. AET disclaims any obligation to revise or update any forward-looking statement that may be made from time to time by or on its behalf.