EENT Announces Recent Developments with the AXP 1000 Including Work Toward Development of Mobile Emissions Tax Credits with Pennsylvania.

PLANO, Texas -- Energy & Engine Technology Corporation (OTCBB:EENT), a leading developer of auxiliary power generators for the long haul trucking industry, announced today that it has made strides with the marketing of the AXP 1000.

The Pennsylvania Department of Environmental Protection (DEP) has a Small Business Advantage Grant Program which allows Pennsylvania truckers to apply for up to 50% matching grants, to a maximum of $7,500, to enable small Pennsylvania businesses to adopt or acquire energy efficient or pollution prevention equipment.

EENT also has developed a relationship with the DEP through which the Company is exploring the use of its patent for the linking of a tracking device to its AXP 1000 to be able to monitor reduced emissions through use of the AXP 1000 rather than idling the main truck engine. EENT has an exclusive strategic alliance with Track Star (see www.trackstar.com) of New Hartford, NY for use of its various tracking systems for that purpose and is the only unit with that ability.

EENT will also be working with the Pennsylvania DEP Office of Air Quality to set up the first ever mobile emissions tax credit (MERC) program in Pennsylvania, and both groups look forward to the potential of utilizing the AXP - Track Star combination as a way to provide a significant boost in the effort to develop MERCs for the AXP 1000 (see www.eent/news/20050727-PR.htm). The qualification for MERCs will provide an additional method for recouping unit costs.

A MERC program for the AXP 1000 is another way for entities and individuals to profit from use of the EENT technology. Several states, including Texas, have set up or have the administrative ability to set up trading programs for emissions reduction credits (http://www.tceq.state.tx.us/comm_exec/forms_pubs/pubs/rg/rg-322_20489 9.pdf#search='texas%20mobile%20emission%20credits). (Due to its length, this URL may need to be copied/pasted into your Internet browser's address field. Remove the extra space if one exists.) Also, a review of the websites of several known regional investment banks shows that they have departments which act as brokers and/or advisors for MERC and/or other emissions trading programs.

EENT's CEO, Will McAndrew, stated: "I thank the Pennsylvania DEP for its continued support, and I look forward to working with them in ways to benefit the economy and environment in Pennsylvania. I look forward to the potential for success for the AXP 1000 through our relationship with the Commonwealth."

About EENT

EENT (http://www.eent.net), headquartered in Plano, Texas, develops and markets power generation products for the long haul trucking industry and for marine applications through its BMZ Generators Technology subsidiary.

The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for forward-looking statements. Certain information included in this communication (as well as information included in oral statements or other written statements made or to be made by Energy & Engine Technology Corporation) contains statements that are forward-looking, such as statements relating to the future anticipated direction of the high technology and energy industries, plans for future expansion, various business development activities, planned capital expenditures, future funding sources, anticipated sales growth and potential contracts. Such forward-looking information involves important risks and uncertainties that could significantly affect anticipated results in the future and, accordingly, such results may differ from those expressed in any forward-looking statements made by or on behalf of Energy & Engine Technology Corporation. These risks and uncertainties include, but are not limited to, those relating to development and expansion activities, dependence on existing management, financial activities, domestic and global economic conditions, changes in federal or state tax laws, and market competition factors.