Alternate Energy Corp.'s Hydrogen Increases In Purity As Process Is Refined-Maxxam Analytics Finds.

Energy Editors/Business Editors

LAS VEGAS--(BUSINESS WIRE)--Oct. 7, 2003

Latest Affordable Hydrogen Production Lab Test

Results Show 99.9% Purity 

Alternate Energy Corporation (OTCBB:ARGY) announced today that the company's most recent tests of its proprietary hydrogen production process yielded the best purity results to date. AEC engineers were delighted when the hydrogen produced during this most recent trial resulted in an impressive 99.9% purity. The latest tests were conducted at Maxxam Analytics state-of-the-art facilities in Ontario. Maxxam Analytics is a leading analytical laboratory company in Canada offering services in petroleum & petrochemical analysis and environmental analysis.

According to AEC Chairman Blaine Froats, "Though the minimum purity requirement for joint fuel cell testing was met ahead of schedule, impurities - especially carbon dioxide, can have deleterious effects on a fuel cell. We therefore felt it important that we continue to pursue the highest level of purity as possible. We are very satisfied with the results. Our team achieved as close to 100% purity as one can attain, while still keeping the final product cost at a very affordable level."

"Maxxam Analytics was pleased to provide analytical services to Alternate Energy Corporation. In the most recent round of analytical testing, using accredited and approved methods; the hydrogen purity was determined to be 99.9 %. This sample was taken directly from a small generating unit set up in the laboratory," says Joyce MacDonald, Supervisor Air Quality Services, Maxxam Analytics.

The prices of fuel cells have been gradually moderating over the past few years, however, the commodity pricing of the hydrogen needed to make these fuel cells work has shown little progress. In addition, there is a continued negative public perception regarding the transportation and storage of hydrogen, which has contributed to its limited acceptance.

AEC clearly recognized that hydrogen is the ideal fuel because it is both clean, abundant and can be made affordably. That is why the company has drafted a corporate mission with two key objectives. The first was to make hydrogen available on an as-needed basis, to avoid transportation and storage issues. The second, to make hydrogen so inexpensive that people all over the world could afford it.

"Hydrogen is the most abundant element in the universe. Mother Nature has been producing it for millions of years. Written records even indicate that hydrogen has been produced by man since 1671. The difficulty has been to produce quality hydrogen cheaply. That is where we come in," says Froats.

Last month AEC became the exclusive owner of a proprietary hydrogen production technology that works to achieve both of these goals. AEC, which had been a licensee of the technology, was so impressed with the process that it bought the system.

This latest purity achievement translates into a number of benefits. The first is the minimization of potential damage to the fuel cell, achieved by reducing contaminants such as carbon dioxide and other impurities to a safe level. Ultimately, this means that there is less wear-and-tear on the fuel cell, resulting in less overall maintenance and cost of operation.

The company's recent improvements in hydrogen purity were achieved when the hydrogen production unit was physically brought into Maxxam's laboratory for testing. Hydrogen samples were taken directly from the unit itself to avoid leakage inaccuracies that had occurred with past analyses.

AEC continues to work to reduce the size of its hydrogen production unit for the consumer market, as well as the building of additional demonstration units for presentation to major corporate entities.

About Alternate Energy Corporation (AEC):

Founded in March of 2000, AEC is a leading developer of cost-effective, environmentally responsive fuels and electric power solutions. The company's mission is to contribute to an environmentally sound, alternative energy future. The company is the patent holder of power recovery and fuel-cell-quality hydrogen production technologies for residential, commercial and industrial use.

About Maxxam Analytics:

Maxxam, as the leading analytical laboratory company in Canada offers services in four main strategic areas: Petroleum & Petrochemical Services, Environmental Sciences, Pharmaceutical Sciences and Food Sciences. Maxxam Analytics currently employs over 650 highly skilled scientists, technicians and support staff in a network of lab locations across the country. Maxxam continues to grow its national and international capabilities while remaining committed and focused on the specific regional needs of our customers.

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 10-QSB and 8-K. Actual results may differ materially from management's expectations.