New Energy Corp. Engages Magnum Financial Group.

Business Editors

SAN DIEGO--(BUSINESS WIRE)--Dec. 14, 2001

New Energy Corp. (OTCBB:NECO), an alternative-renewable energy/thermal generator systems provider, today announced its engagement of Magnum Financial Group LLC, a Los Angeles-based financial communications specialist, to assist in broadening the company's audience within the investment community.

Michael S. Manahan, president of Magnum, offered: "At Magnum, we seek out early-stage companies that we believe have the potential for exponential growth, allowing those companies to transition to senior exchanges such as Nasdaq or the American Stock Exchange, and to obtain the support of major investment banking firms and institutional investors.

"Our investment community contacts are looking to get in on the ground floor before our client companies become well known, and thereby achieve superior returns on their investments. We believe New Energy Corporation fits very well into this profile, and our objective is to assist management in building stockholder value."

Manahan continued: "New Energy Corporation is a truly exciting company that is on the verge of exploding on to the energy market. This company has a product that the entire world needs: a renewable source of energy delivered cleanly and efficiently, and at prices competitive with that of energy derived from non-renewable fossil fuels. We are so excited to represent a company that has the potential to revolutionize the entire energy industry."

Commenting on Magnum's engagement, John McDonald, president of New Energy Corp., remarked: "After an exhausting search and much due diligence, we are pleased to bring Magnum on board. We intend to ensure that both our current and potential stockholders hear the company's short-range accomplishments and long-term plans for accelerated growth.

"We are implementing a multi-tiered campaign to get our story and investment opportunity out to the public. By engaging Magnum, we have signaled the launch of this campaign. Magnum, a specialist firm, was hired to bring our stock price and resulting market capitalization in line with our plans to take New Energy Corporation to the next level."

About New Energy Corp.

New Energy Corp. is a U.S. solar energy generator systems provider deploying the most advanced High Concentration Photovoltaic (HCPV) technology in the world. The emerging HCPV technology enables the company to deliver electrical and thermal solar energy generators to residential, commercial, industrial and utility scale end-users on an economic basis superior to all other forms of renewable energy generators and more than competitive with fossil fuel generators. For more information, visit www.newenergyco.com.

About Magnum

Magnum Financial Group LLC is a financial communications, corporate development, and financial advisory firm representing middle-market and micro-cap companies as well as those companies planning to become public. Magnum provides value for its clients by offering financial consulting services, including strategy formulation, business plans, the raising of capital, paid research, financial communications, investor relations and strategies for going public.

Magnum is globally recognized for its knowledge of the capital markets, communications strategies, and substantial contacts in the international investment community. For more information, visit www.magnumfinancial.com.

The matters set forth in this news release may contain forward-looking statements. Forward-looking statements involve certain risks and uncertainties that could cause actual results to differ materially from expectations. Contributive factors to such differences include those identified in the company's filings with the Securities and Exchange Commission ("SEC").