DeMarco Energy Sells Its Eighth Filter Service Distributorship.

Business Editors/Energy Writers

AUSTIN, Texas--(BUSINESS WIRE)--April 7, 2003

DeMarco Energy Systems of America Inc. (OTCBB:DMES) is pleased to announce the sale of its eighth Filter Service Distributorship.

The down payment for a Central Texas distributorship has been received. The sales team is already in the area generating sales. The company expects to receive the final funding for this Central Texas Distributorship by the end of July. DeMarco is building other filter service distributorships throughout the Central Texas and West Texas areas.

"We are obtaining new clients every day and expect to announce the completion of distributorships that are `under construction' in the near future. This division is now a major part of the DeMarco Energy family. We are consistently growing this aspect of the business and are constantly adding new territories. The interest in these distributorships has been phenomenal," stated William C. Berry, chairman of DeMarco Energy.

A DeMarco Energy distributorship costs $150,000.00 and will return a cash flow of at least $45,000.00 per year to the owner after all expenses and payments. This cash flow starts the very first year. The unique DeMarco Filter Service Distributorship concept allows the distributor the freedom to expand and grow the business while enjoying a great cash flow. It is expected that all distributorships will grow at a minimum of 20% per annum.

The DeMarco distributorship is a total turnkey operation in which the distributor will start with all the sales, tools, inventory and equipment necessary to operate the business. The typical loan requires an initial down payment and repayment of the loan within a period of five years. DeMarco will provide management assistance, which includes accounts receivable accounting, bookkeeping, sales and payroll reports, new sales assistance, installation assistance and most other management areas that may be required.

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.