Consolidated Energy, Inc. Announces $73,000,000 Contract.

CORAL SPRINGS, Fla. -- David Guthrie, President and CEO of Consolidated Energy, Inc. (OTCBB:CEIW) ("The Company") announced today that Eastern Consolidated Energy Inc., (ECEI) a wholly owned subsidiary of Consolidated Energy Inc., completed negotiations and executed an agreement with American Electric Power (AEP) for a coal supply contract for Kentucky Power Company's ("KPC") Big Sandy Plant. The contract has a face value of more than $73,000,000 with additional incentives. The contract provides that ECEI will deliver to the Big Sandy Plant a minimum of 40,000 tons per month from one of several coal reserves held by ECEI beginning no later than March 1, 2005 and continuing until February 29, 2008.

Additionally, the contract allows for ECEI to deliver up to 20,000 tons per month at the option of ECEI commencing October 1, 2004 and continuing until the primary contract begins March 1, 2005.

Mr. Guthrie stated that "ECEI had been pursing this contract for several months and feels fortunate to have this contract come to fruition." Guthrie further stated that "Revenues realized from the production and sales from this contract will allow ECEI to accelerate the expansion and development of its Central Appalachian coal reserves."

Any statements contained in this release that are not historical facts may be considered "forward-looking statements." Forward-looking statements are based on current expectations and the current economic environment. We caution the reader that such forward-looking statements are not guarantees of future performance. Unknown risk, uncertainties as well as other uncontrollable or unknown factors could cause actual results to materially differ from the results, performance, or expectations expressed or implied by such forward-looking statements. Consolidated Energy does not undertake to update forward-looking statements in this news release to reflect actual results of and changes in assumptions or changes in other factors affecting such forward-looking information. Specifically, the value of the above contract to Consolidated Energy is dependent on its ability to deliver the necessary amounts of coal. Delivery of these amounts requires an increase in the current production rate through the implementation of new production shifts as well as new equipment installation that may be subject to unforeseen delays.