DeMarco Reports Strong Geo-Thermal Sales.

Energy Editors/Business Editors

AUSTIN, Texas--(BUSINESS WIRE)--June 12, 2003

DeMarco Energy Systems of America Inc. (OTCBB:DMES) reports strong geo-thermal sales.

DeMarco, a geo-thermal heating & cooling company as well as a filter service company, reports a sale of over $85,000 to a major non-profit elderly care center in the Austin area. Additionally, there are several contracts either awaiting a down payment, or a final signature. These contracts total approximately $200,000.

The non-profit center will be completed and moneys collected before the end of June 2003. The rest of the projects will be started later in the summer and completed within the next fiscal year. The projects that were started earlier in this fiscal year have been completed and the final moneys have been paid.

DeMarco will be cooling and heating its administrative offices with a DeMarco Energy Miser heat pump. This unit will be available for viewing in the DeMarco showroom that will be completed later this summer.

DeMarco will be sending two of its employees to geo-thermal certification school this month. Upon completion of the school, DeMarco will then have three employees certified in the installation of geo-thermal heat pumps.

DeMarco will have at least two full-time employees in the geo-thermal heat pump division by the end of the summer. Sales are projected to increase substantially within the next 90 days. The geo-thermal division is projected to reach a break-even point and be on a profitable basis by the first of calendar year 2004.

"We are pleased with the progress that we have made in the geo-thermal division. We have been looking for substantial sales and a profitability point for a long time. The management of the company feels that we have finally put all the pieces of the puzzle together and we will be able to move forward from here," 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.