Alternate Energy Corp. & Astris Energi Inc. Sign Letter Of Intent To Provide Low-Cost Electricity For The Home And Commercial Markets.

Business Editors

LAS VEGAS--(BUSINESS WIRE)--Aug. 5, 2003

Alternate Energy Corporation (OTCBB:ARGY), a producer of low-cost hydrogen gas, announced today that it has signed a Letter of Intent with Astris Energi Inc. (OTCBB:ASRNF), a world leader in alkaline fuel cells.

The proposed joint venture plans to produce complete stationary electric power systems for the world-wide household and commercial markets. The merging of a reliable alkaline fuel cell (Astris) with a low-cost supply of hydrogen (AEC) is expected to provide the market with a long-awaited feasible solution to making fuel cells an affordable energy alternative.

Alkaline fuel cells generate electricity through the use of hydrogen as a source of energy. They are noiseless, odorless and release no pollutants whatsoever.

AEC and Astris will enter into a final Joint Venture agreement after undergoing the completion of hydrogen quality and volume testing with the new AEC process.

Over two years ago, Astris Energi Inc. has developed and delivered a four-kilowatt fuel cell that provided electricity, heat and hot water to individual homes and small businesses. It has also been operating a golf car powered by a two-kilowatt Astris alkaline fuel cell "engine" since early 2001.

To date, the fuel cell industry has been impeded by the high cost of hydrogen as well as the prohibitive capital cost of the fuel cell itself. In twenty years of extensive research and development, Astris has developed a low-cost and reliable fuel cell. The combining of the technologies will produce a more affordable retail consumer product.

Mr. Blaine Froats, Chairman stated that, "it is anticipated that the cost of AEC hydrogen will be a fraction of the existing cost of hydrogen today."

Visit the AEC website: www.alternateenergycorp.com

About Alternate Energy Corporation (AEC) - www.alternateenergycorp.com

Founded in March 2000, AEC owns patented technologies that enable electric utility companies and large multi-national industrial companies (petroleum, chemical, mining, steel, pulp and paper, manufacturing, etc.) to increase their power output by, in some cases, up to 50 % with significant decrease in cost. This is accomplished without increasing the amount of fossil fuel that is used, which provides two additional benefits: less dependency on imported fossil fuels and lower fossil fuel pollution levels. Both the cost and availability of fuel, and protecting the global environment are currently two of the highest profile issues on North American agendas. Our engineered systems are part of the solution and not part of the problem.

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 for the year ended Dec. 31, 2002, and subsequent Forms 10-QSB and 8-K. Actual results may differ materially from management's expectations.