Cambridge Energy Corporation Tenders Offer to Acquire North American Geo Power; Move to Expand Presence in Fast Growing Market.

Business Editors

LAFAYETTE, La.--(BUSINESS WIRE)--April 15, 2002

Cambridge Energy Corporation (OTCBB:CNGG)(www.cambridgeenergy.com), an oil & gas exploration and production company, announced today that it has signed a letter of intent (LOI) to acquire North American Geo Power, Inc., to expand its presence into the high growth alternative energy market. The acquisition is subject to completion of due diligence and the signing of a definitive agreement.

North American Geo Power, Inc., (NGP), headquartered in Oceanside, California, is a development stage company founded in 2000. The company is now poised to begin a program to acquire, develop, own, expand and operate geothermal power plants in the Western United States. The founders of NGP are seasoned geothermal industry executives with the required expertise and professional standing to successfully acquire and operate existing and newly developed geothermal power plants. The executives of the company have developed a comprehensive and expansive plan to develop the company into a prominent player in the geothermal energy market.

NGP President, Steve Muzzo, stated, "This is an exciting relationship for us. The synergy of our business plan and the opportunities with Cambridge should prove to be very successful. We feel that this combination will help grow revenues and earnings, and build market share for our business."

Geothermal energy has the potential of providing vast quantities of additional renewable power to California and the Western states, helping to ease an electricity supply crunch that peaked in the summer of 2000. The economic incentives for geothermal power, as opposed to non-renewable sources, are many and significant. President Bush's "Clear Skies and Global Climate Change Initiatives," announced in March 2002, provides $4.6 billion in tax credits for renewable energy resources. These renewable tax credits are estimated to translate into approximately 1 1/2 cents per kilowatt-hour. For a geothermal plant selling power at an average electricity price of five to six cents per kilowatt-hour, these incentives would increase after-tax revenues by up to 25%.

Perry West, Chairman and CEO of Cambridge Energy, commented, "Geothermal power production is ideally suited for long-term production contracts, and is becoming more the norm for utility purchases. Since geothermal power plants are not required to purchase `fuel,' their cost structure is insulated from the volatility of other energy markets and is far more stable than fossil fuel plants. Once a geothermal resource is defined and a power plant constructed, future cost elements are known within a very narrow range. This cost stability is a critical item when output is sold under long-term prices."

Forward looking Statements in this document that are not historical fact are "forward-looking statements" as that term is defined in the Private Securities Litigation Reform of 1993. Forward-looking statements are not guarantees of future performance. Our forward-looking statements are based on trends that we anticipate in our industry and our good faith estimate of the effect on these trends of such factors as industry capacity, product demand, and product pricing. These statements are also subject to risks and uncertainties beyond our reasonable control that could cause our actual business and results of operations to differ materially from those reflected in our forward-looking statements. These risks are described in the Company's Form 10-K filed with the SEC.