Chapeau, Inc. Acquires Specialized Energy Products, Inc.; Chapeau, Inc. To Enter Billion Dollar Power Generation Market.

Business Editors/Energy Writers

RENO, Nev.--(BUSINESS WIRE)--April 12, 2001

Chapeau, Inc. (the "Company") announced today that it has finalized its merger agreement with Specialized Energy Products, Inc. ("SEP") of Reno, Nevada. As a result of the merger, Chapeau will now commence operations as a developer, assembler and seller of packaged co-generation and power generation systems to the electrical power market.

The merger provides SEP with the capital needed to complete development of its Deutz AB powered electrical generating system that the Company plans to introduce later this year. The Company acquired SEP for 3.5 million shares of its common stock and the potential issuance of an additional 3.0 million shares of the Company's common stock on the achievement of certain milestones in the development of Chapeau's new business. If all of these shares are issued without further dilution, SEP shareholders would hold approximately 43% of the combined company.

Chapeau's CEO Guy Archbold commented, "SEP executives joining Chapeau include, Gerald H. Dorn as President/ Chief Operating Officer and Richard L. Sorter as Chief Technology Officer. Both Mr. Dorn and Mr. Sorter have over thirty years of combined experience in the distributed energy arena and as such have helped write the existing UL codes for the co-generation industry in the United States. Together, we are extremely pleased with the prospects of entering the distributed energy marketplace. There is strong current demand now and into the foreseeable future for reliable and price competitive electrical distribution, often for mission critical operations such as hospitals and high technology operations. We believe our Deutz powered digitally controlled power system to be a highly reliable product which, will provide Chapeau many competitive advantages in a multi-billion dollar market."

About Chapeau, Inc.

Chapeau, Inc., formerly a development stage company, intends to design, assemble and sell packaged co-generation and power generation systems to market niches in need of reliable controlled energy solutions. The Company is publicly traded on the Over-the-Counter Bulletin Board under the symbol CPEU.

NOTE: The foregoing is news relating to Chapeau, Inc. (the "Company") and contains forward-looking statements, which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. When used in this report, the words "anticipate," "believe," "estimate," "expect" and similar expressions as they relate to the Company or its management, including without limitation, Chapeau, Inc. (as defined herein) and/or the Company's other subsidiaries, are intended to identify such forward-looking statements. The Company's actual results, performance or achievements could differ materially from the results expressed in, or implied by these forward-looking statements. For a discussion of additional factors that may affect actual results, investors should refer to the Company's filings with the Securities and Exchange Commission, in particular, its annual report on Form 10-K for the fiscal year ended June 30, 1999 and in particular all factors listed under "Risk Factors" in the 10K and its most current quarterly report on Form 10-Q for the quarterly period ended December 31, 2001. This does not constitute an offer to buy or sell securities by the Company, its subsidiaries or any associated party and is meant purely for informational purposes.