Aero Marine Engine Investor Update.

Business Editors

TORRANCE, Calif.--(BUSINESS WIRE)--Oct. 17, 2003

Aero Marine Engine, Inc., (OTCBB:ARMR - News) a developmental stage company which has acquired the rights to the Dyna-Cam engine, a proprietary internal combustion engine, today announced highlights from its annual report, as well as an update on the Company's recent progress.

In October 2003, the Company secured financing in the amount of $2,500,000 from existing shareholders, to be advanced to the Company as unsecured shareholder loans. The Company is pleased to announce that, to date, $220,000 has been received. Additionally, Perma-Tune Electronics, Inc. agreed to extend a $1.5 million credit line for products and services. Terms of this agreement are in the process of being finalized.

Aero Marine Engine is currently producing several new engines. Some of the prototypes will then be sent to the New York engineering facility for final evaluation and reliability testing. The Company is in the process of working with various manufacturers to secure new test boats. Additionally, the Company has plans to utilize one of its prototype engines in a retired racing boat. This racing boat, with a fully functional Dyna-Cam engine, will be tested and performance will be measured against its previous speed and horse power outputs.

According to Garth Bailey, chief executive officer of Aero Marine Engine, "Due to the incredible size-to-weight-to-torque performance of the Dyna-Cam engine, as well as the quietness of the engine, we have developed an internal marketing strategy to target the marine and static (generators etc.) engine industries first and foremost. Our marketing strategy will consist of promoting the engine at boat shows and through contact with parties who have already contacted the Company expressing their interest in acquiring our revolutionary engines."

In order to meet the demands of the boating industry, work is commencing on a diesel fuel burning version of the engine. In conjunction with our venture partner, Perma Tune Electronics Inc,, engineering studies have shown that a hybrid spark assisted compression combustion method can be utilized in the Dyna-Cam engine. Information from the marine industry has indicated that a diesel burning version would meet with wide acceptance. Aero Marine anticipates this revolutionary method of burning diesel fuel will not delay the introduction of the Dyna-Cam engine.

About Aero Marine Engine, Inc.

The Dyna-Cam engine is an internal combustion engine where the pistons drive a cam to generate power to the main shaft. The main shaft is in a parallel direction to piston movement, without connecting rods or crankshaft. The engine has approximately 40% fewer moving parts than a conventional internal combustion engine, has a greater power to weight ratio, produces high torque at low rpm, operates with less vibration, and is lighter than the competition.

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. In particular, when used in the preceding discussion, the words "believes," "expects," "intends," "will," "anticipated," or "may," and similar conditional expressions are intended to identify forward-looking statements within the meaning of the Act and are subject to the safe harbor created by the Act. Except for historical information, all of the statements, expectations and assumptions contained in the foregoing are forward-looking statements that involve a number of risks and uncertainties. It is possible that the assumptions made by management are not necessarily the most likely and may not materialize. In addition, other important factors that could cause actual results to differ materially include the following: business conditions and the amount of growth in the company's industry and general economy; competitive factors; ability to attract and retain personnel; the price of the Company's stock; and the risk factors set forth from time to time in the Company's SEC reports, including but not limited to its annual report on Form 10-KSB; its quarterly reports on Forms 10-QSB; and any reports on Form 8-K. Aero Marine Engine, Inc. takes no obligation to update or correct forward-looking statements and also takes no obligation to update or correct information prepared by third parties which is not paid for by the Company.