DeMarco Energy Sells Its Fifth Filter Service Distributorship.

Business Editors/Energy Writers

AUSTIN, Texas--(BUSINESS WIRE)--March 14, 2003

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

Down payment for the Northeast Austin distributorship has been received and development for this territory is in progress. DeMarco is building filter distributorships throughout the Austin, San Antonio and West Texas areas. The company hopes to receive the completed funding for the Northeast Distributorship by fiscal year end, June 30, 2003.

"We have been very successful in selling and developing the filter service distributorships and expect this segment of our business to continue to be a prosperous venture," states William 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, starting 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.