DeMarco Energy Receives $300,000 in Funding.

Business Editors and Energy Writers

DeMarco Energy Systems of America Inc. (OTCBB:DMES) ( www.demarcoenergy.com ) a leading geothermal heat pump technology and filter services company, is pleased to announce that it has completed a third round of financing.

The investors include the same parties that invested the $500,000 in September 2000 and the $700,000 round in April 2002 along with certain of their affiliates. The financing will be used to strengthen the balance sheet of the company and further support the company's strategic growth.

"Thanks to the continued support of our investors the company has been able to expand our sales and marketing initiatives as well as complete a recent acquisition," stated Victor DeMarco, Chairman and CEO of DeMarco Energy. "Our company will continue to expand in every area of the geothermal heat pump and filter services market. The company's fourth quarter will show a much improved balance sheet and we expect to see continued improvement through the end of the calendar year."

DeMarco has recently created and sought input from a board of advisors comprised CPAs, MBAs and proven entrepreneurs, that are assisting the company in creating a multi-faceted business plan. The plan designed by the board will reduce the cash flow problems the company has experienced in the past while increasing revenue and growth. The three main segments of the business plan include continued marketing & development of the municipal systems technology. The second segment will increase the company's residential & light commercial sales. The third segment of our business plan will be centered on the May 2002 acquisition of Baker Filter Service. The intent is to create a (franchise style) AC filter replacement business which can be replicated in any market in the United States.

The DeMarco Energy Miser is a patented geothermal heating and cooling system, producing savings of 50-70% in commercial, institutional and industrial applications. The Energy Miser uses the thermal properties of municipal water mains, reuse water or any other managed water supply. In January of 2002 DeMarco Energy Systems announced the addition of traditional ground loop installations as an added benefit to its business scope as well as the acquisition of Baker's Filter Services a commercial filter replacement business.

This News Release may contain forward-looking statements relating to future results, performance, plans, events or other matters. Words such as "potentially," "will," "anticipates," "believes," "plans," "expects," "future," "intends" and similar expressions are used to identify these forward-looking statements. Such statements involve numerous risks and uncertainties, including, but not limited to, risks and uncertainties pertaining to development of the company's products and services and markets for such products and services, the timing and level of customer orders, competitive products and services and pricing, changes in economic conditions and the markets for the Company's products and services and other risks and uncertainties. Actual results, performance and events may differ materially. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this News Release. DeMarco financials can be found in its filings with the Securities and Exchange Commission, which can be accessed at www.sec.gov.