Cellulosic Feedstock Preprocessing Announced by AETE.

HOUSTON -- The Alternative Energy Technology Center, Inc. (OTC:AETE):

The economic competitiveness of cellulosic biofuels production is highly dependent on feedstock cost, which constitutes 35-50% of the total production cost, depending on various geographical factors and the types of systems used for harvesting, collecting, preprocessing, transporting, and handling the material. Initial studies show that AETE's biomass preprocessing technology increases production by 10% while reducing process time by about 12%.

"Included in the technology we acquired from Meridian Biorefining we can preprocess cellulosic feedstocks into extremely small particles at a modest cost," explained Brown Marks, the President of AETE. "By reducing size, we increase surface area and density, which allows cellulose to more efficiently be digested into its end products. We believe that a 10% increase in efficiency will translate into a similar reduction in the cost per gallon of biofuels we produce," he concluded.

Cellulose forms the largest store of biomass energy on the planet. Composed of linked polysaccharide chains and lignins, it forms the bulk structural material for trees, woody plants and shrubs. Feedstock preprocessing requirements, and the concentration of starches, will impact energy balance and production cost. As the deployment of cellulosic biorefineries approaches, feedstock cost versus output are the driving factors that influence biorefinery locations and will largely control the rate at which this industry grows.

The Company: The Alternative Energy Technology Center, Inc. [OTC:AETE], based in The Woodlands, TX, is a technology company focused on biofuels and alternative energy technologies. It is developing the first true biorefinery in the U.S. It will focus on technologies using renewable energy inputs from non-food energy sources and on technologies that can be scaled up to efficiently addresses the post-petroleum energy needs of the United States.

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