DeMarco Moves Beyond Development Stage Classification in Financial Statements.

Energy Editors/Business Editors

AUSTIN, Texas--(BUSINESS WIRE)--April 23, 2003

DeMarco Energy Systems of America Inc. (OTCBB:DMES) announces that with the release of its third quarter financial statements, it will change from developmental stage company reporting, to reporting as a company engaged in operations.

DeMarco, a geothermal heating & cooling company and a filter service company, has recorded revenues and expenses since its inception as a 'developmental stage company'. To move out of developmental stage financial reporting, and to reporting as a company engaged in operations, the company must have sufficient current and future operations that generate enough revenue to change the focus of the company from 'raising capital to pay expenses' to 'generating revenue to pay expenses.'

"This is the biggest step in the history of this company. It is very important that we make this transition. It is the beginning of our road to profitability and to eliminating the issue of 'going concern' on our financial statements. We are extremely excited about this change in our financial condition," stated William C. Berry, Chairman.

One year ago DeMarco had only two employees and did not have substantial operations or revenue. Today we have 19 employees and substantial revenues. Fifteen of the additional employees are directly involved in the sales and installation operations of the company.

"This is a significant improvement in the operating condition of the company," states William C. Berry, DeMarco Chairman of the Board. "This is a further step in the implementation of the business plan for DeMarco Energy."

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.