Consolidated Energy Commences Coal Deliveries to American Electric Power; Mine Ventilation and Coal Processing Projects Completed Bank Line of Credit Established.

BETSY LAYNE, Ky. -- Consolidated Energy, Inc. (OTCBB: CEIW), announced today that it began supplying American Electric Power Co. ("AEP") on a 36-month coal supply contract which has a face value of approximately $73,000,000, not including additionally available incentives. The contract provides that the Company's wholly owned subsidiary, Eastern Consolidated Energy Inc., will deliver to AEP's Big Sandy plant which is located approximately 40 miles from Consolidated's newly constructed, Martin County, KY, coal preparation facility a minimum of 40,000 tons per month and continue until February 2009. The coal being shipped to AEP is mined from the Company's Pond Creek seam.

The Company also announced that it completed the approximate, year-long Pond Creek slope construction project along with the Alma mine ventilation project, having expended approximately $6.5 million. The Company also announced that the newly-constructed, approximately $6 million coal preparation facility began processing coal this month.

The Company, after receiving majority approval from its existing note holders, entered into a Line of Credit agreement with Community Trust Bank, Inc., Pikeville, KY. This agreement allows the Company to borrow 80% of its AEP accounts receivable, up to $5 million, at a rate of Prime Rate plus 1%.

Mr. Guthrie, the Company's President, stated that he is excited to see the vision and the many years of effort of so many talented and committed people, begin coming to fruition.

About Consolidated Energy, Inc.

Consolidated Energy, Inc. is engaged in coal mining operations in Eastern Kentucky. The Company's main business focus is operating its mining subsidiary, Eastern Consolidated Energy, Inc.

Forward Looking Statements

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