The provisional patent applications are related to newly developed alloys created from research and development that was carried on in the Company's Tennessee facility. This is part of an ongoing planned patenting program that has been developed by AEC together with their patent attorneys in California. 

The announcement was made today by AEC's Chairman and CEO, Blaine Froats: "We are very pleased at having achieved this important milestone as it allows us to move forward in a multitude of areas. Specifically, with protection, we can move ahead at a quicker rate relative to producing a standby electrical generator. This has involved months of work that is now behind us." 

From this point on, all research and development will be performed in Burlington, Ontario where it can be managed under closer control. In this regard, it is the intention to close the operation in Tennessee. 

AEC's unique technology generates hydrogen gas from a proprietary material. The technology's distinctive appeal comes from its ability to produce pure, fuel-cell grade hydrogen (99.9%) at low-cost, on-demand, without any known harmful or toxic by-products. These competitive characteristics are significant as they may provide alternate solutions to a number of storage and generation challenges associated with hydrogen. 

AEC is planning to market this affordable, 'green' technology to vertical business segments that can capitalize from its comprehensive set of appealing benefits. These include power applications which can now profit from hydrogen as an alternative fuel source, such as; stationary industrial, micro-technology, stationary back-up and emergency power applications and residential primary. For demonstration purposes in these markets, AEC recently converted an internal combustion engine (ICE) to run on hydrogen, and expects to take delivery of an Alkaline fuel cell from its alliance partner, Astris Energi Inc. in the near future. AEC's short-term focus is the construction of fully integrated power solutions which combine its hydrogen production unit into at least two potentially very lucrative products - the internal combustion engine and fuel cell. 

About Alternate Energy Corporation 

Alternate Energy Corporation (AEC) is energizing the hydrogen economy. AEC is the first company to provide a hydrogen device that has mass-deployment economics and provides small-scale, on-demand distributed generation of electricity. AEC's patent pending discovery in metallurgy permits a small-scale unit to generate hydrogen from water through a "green" process at a fraction of the fossil fuel kWh cost of energy. AEC believes its product can have a revolutionary impact on the energy industry. Additional information is also available at the company's website at www.cleanwatts.com 

Statements herein express management's beliefs and expectations regarding future performance and are forward-looking and involve risks and uncertainties, including, but not limited to, the ability to negotiate outstanding prior debts of acquired companies; properly identify acquisition partners; adequately perform due diligence; manage and integrate acquired businesses; react to quarterly fluctuations in results; raise working capital and secure other financing; respond to competition and rapidly changing technology; deal with market and stock price fluctuations; and other risks. These risks are and will be detailed, from time to time, in AEC's Securities and Exchange Commission filings, including Form 10-KSB 10-QSB and 8-K. Actual results may differ materially from management's expectations.