HOUSTON-- American Security Resources Corporation (ARSC), announced today that its subsidiary, Hydra Fuel Cell Corporation, has formed Hydra Fuel Cell Marketing Corporation to market and license the proprietary Hydra hydrogen fuel cell. The Hydra fuel cell is an energy source with a broad array of commercial and military applications.

American Security Resources is acquiring the exclusive marketing and licensing rights to the Hydra fuel cell from privately-held EGO Design, Inc., which holds the patents for the Hydra silicon-based, hydrogen fuel cells. EGO Design's research indicates that the current market for fixed power is approximately $5 billion and, within a few years, may exceed $7 billion. EGO expects to penetrate roughly 17% of the market, which could generate sales to the company in excess of $100 million annually within two years, and lead to Hydra sales of $1 billion annually within 8 years.

According to Joe Grace, President of ARSC, "We previously formed Hydra Fuel Cell Corporation and Hydra Fuel Cell Manufacturing Corporation to produce the proprietary Hydra hydrogen fuel cell. Our Board of Directors believes that the worldwide marketing and licensing opportunities for this technology could become so great that they warrant the formation of a separate corporation."

Identified applications for the 5kW - 40kW systems include back-up power for tellecommunications, UPS, light commercial and residential applications. There are also licensing opportunities for motor vehicles, larger power systems and portable electronics.

About American Security Resources Corporation

American Security Resources Corp. is a holding company actively seeking to acquire profitable, well-managed companies that provide products or services for homeland security or national defense. The company is currently in discussions to acquire several companies.

For more information, please see: www.americansecurityresources.com.