DeMarco Reports Continued Revenues.

Energy Editors/Business Editors

AUSTIN, Texas--(BUSINESS WIRE)--June 18, 2003

DeMarco Energy Systems of America Inc. (OTCBB:DMESE) announces the release of its third quarter financial statements.

DeMarco, a geothermal heating & cooling company as well as a filter service company, recorded total revenues of $171,954 for the quarter ended March 31, 2003, compared to no revenues for the prior year quarter ended March 31, 2002. DeMarco recorded sales of $474,348 for the nine-month period ended March 31, 2003, as compared to $54,170 for the prior year nine-month period. The revenues included filter service sales, geo-thermal heat pump sales and the completion of the third filter service distributorship in Round Rock, Texas.

The company recorded a gross margin of $157,426 for the quarter ended March 31, 2003, as compared to no gross margin for the prior third quarter ended March 31, 2002. The company also recorded a gross margin for the nine-month period ended March 31, 2003, of $290,208 as compared to $11,334 for the nine-month period ended March 31, 2002.

DeMarco reports a net loss for the quarter of $440,235, while the prior year third quarter reported a net loss of $864,044. Of the current loss, $250,752 was a non-cash accounting charge for beneficial interest on the convertible debentures. The nine-month loss was $1,245,872, as opposed to $1,313,932 for the prior year.

The symbol for DeMarco Energy Systems of America Inc. should change back from DMESE to its normal symbol of DMES within the next couple of days.

"Our financial condition keeps changing for the better each quarter. The tremendous growth that we are experiencing does not appear on these financial statements, but will begin to appear on the financial statements for our year end of June 30, 2003. We have increased our employees in the past 5 months from 4 to 19 and are now experiencing significant sales volume. We are excited about where we are and are deeply committed to the implementation of our business plan. We are moving forward from here and will not look back," states William C. Berry, Chairman.

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.