DeMarco Energy Sells Two Filter Service Distributorships.

Business Editors & Energy Writers

AUSTIN, Texas--(BUSINESS WIRE)--Dec. 17, 2002

DeMarco Energy Systems of America Inc. (OTCBB:DMES), is pleased to announce the sale of its first two Filter Distributorships in Waco and Temple/Killeen, Texas.

"This is a huge business milestone for DeMarco," states Brian Winterowd, Chief Operating Officer, "and the company expects the next distributorships to be established and ready for sale by mid 2003. We currently have four other investors at hand with down payments ready to purchase territories throughout Texas. The company is now building these territories as quickly as possible. The next territory we expect to have completed will be San Antonio."

This unique opportunity will enable a distributor to start a business with a positive cash flow and a substantial profit from the very first day. DeMarco has uniquely packaged the filter service business so that a distributor can purchase, operate, pay for, and manage the business. A filter service business is a business in which the distributor changes the air filters for almost any airflow system.

The DeMarco distributorship is a total turnkey operation in which the distributor will start with all the sales, tools, inventory and equipment necessary (on the very first day) to operate the business. DeMarco guarantees that the beginning annual sales are sufficient to provide the minimum net cash flow of $40,000.00 per annum to the owner. The typical loan requires a small down payment and a payback period of five years on the loan. DeMarco has a unique buy-back feature and a right of first refusal feature that greatly minimizes the risk of the loan. The distributor has to maintain only a small amount of working capital. DeMarco will provide management assistance to include accounts receivable accounting, bookkeeping, sales and payroll reports, new sales assistance, installation assistance and most other management assistance 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.