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AEC Signs Letter of Intent to Acquire Majority Interest In Subsidiary of Leading Renewable Energy Firm

Publication date: 15-April-2004
Source:AEC

Alternate Energy Corporation (OTCBB: ARGY - News) announced today that it has signed a letter of intent to acquire a majority interest in Sterling Technologies, Inc. from Sterling Planet, Inc. Sterling Technologies is the wholly owned subsidiary of Sterling Planet that deploys distributed generation technologies, primarily solar systems, through utilities and state-supported green energy programs. Sterling Planet's customers include 16 electric utilities and ESCOs (energy service companies) in Florida, Massachusetts, New York, Rhode Island, Texas, Washington, D.C., and Nebraska as well as multinational corporations leading in environmental stewardship such as Alcoa, Dupont, The Coca Cola Company, Nike, Pitney Bowes and Staples. Sterling Planet also has sold renewable energy certificates to the federal and state agencies such as the U.S. Environmental Protection Agency, U.S. General Services Administration and the New York State Energy Research and Development Authority (NYSERDA). The acquisition is to support AEC's go-to-market effort for its hydrogen production unit. The transaction, which is scheduled to close on or before May 12, 2004, includes the purchase of a 51% interest in Sterling Technologies for cash and stock.

"A large immediate market for AEC is the electric utility industry and their customers who want to be generating a portion of their power on-site using renewable energy. This includes utilities that are looking to reduce the need to finance expensive new power plants as well as supporting their clients' onsite power requirements," said Blaine Froats, AEC's Chairman. "Sterling Technologies' knowledge of Renewable Energy Certificates, governmental and corporate subsidy and incentive programs, and practical, in-the-field experience in this area is unique in our opinion. We are looking forward to working with their management team whom we consider to be most professional, exceptionally competent, and equipped with very deep industry backgrounds," continued Mr. Froats.

For its part, Sterling Planet expects the AEC relationship to help extend and broaden the Atlanta-based company's national leadership position in the rapidly developing market for cleaner electricity from diverse, reliable, domestic renewable energy sources. Founded by Therrell "Sonny" Murphy, Jr., Sterling Planet began operations in 2001 as the nation's first company with a nationally available Green America(TM) renewable choice. "For most of my 30-year career in the electric utility industry," said Mr. Murphy, now CEO of Sterling Technologies, "I have been deeply involved in sustainability for our environment by minimizing the use of fossil fuels through the use of alternate fuels and technology and freeing our economy from fossil fuels dependence. This new relationship with AEC will bring us all a step closer to the realization of that vision."

Most of Mr. Murphy's career has been with Southern Company, one of the world's largest investor-owned utilities and electricity producers, where in the 1980s he pioneered expansion of Southern's core business into the unregulated marketplace of independent power production and other diversified energy-related markets. Since the mid 1980s, Mr. Murphy has demonstrated his commitment to renewable energy by developing, owning and/or operating green power production facilities from California to Connecticut.

Mel Jones, a co-founder of Sterling Planet, will continue in his current position as President and Chief Executive Officer of Sterling Planet. Mr. Murphy will remain as the Chairman of Sterling Planet in addition to his new role in Sterling Technologies.

About Sterling Technologies

Sterling Technologies, Inc. owns the assets of the Sterling Planet distributed power generation business. The company's credits include a 330 KW photovoltaic array with a 660 KW solar hot water facility for the 1996 Summer Olympics swimming venue at the Georgia Institute of Technology in Atlanta. This was the largest solar project in the United States at the time. Since then, Sterling Planet has invested more than $1 million in solar systems development in partnership with various utilities, technology firms and suppliers. Currently, Sterling Technologies owns three solar systems in Florida and has a fairly extensive solar development pipeline.

Sterling Technologies is committed to working with clients in a multitude of ways that will result in the greatest environmental benefit for the lowest cost. The company's objective is to achieve a balance between costs and benefits over a mutually agreed upon period. Sterling Technologies assists clients in tapping subsidies and incentives to develop new sources of onsite generation powered by renewable sources, turn existing generating facilities "green" where such a conversion makes sound economic sense, and exchange Renewable Energy Certificates or "green tags" - both buying and selling - to maximize environmental benefit while controlling costs.

About Sterling Planet (www.sterlingplanet.com)

The first company to offer every U.S. home and business a way to reduce the environmental impact of regular electricity production, Sterling Planet leads the nation in retail sales of renewable energy kilowatt hours. To date, Sterling Planet has sold to homes and businesses nationwide nearly 1 billion kilowatt hours of renewable energy, representing enough energy to power 94,500 homes for a full year and offset 683,500 tons of CO2. The environmental benefit compares to not driving 1.38 billion miles or taking 115,000 cars off U.S. roads. Sterling Planet is also the nation's leader in partnering with electric utilities and businesses to market and/or develop renewable energy. Currently, Sterling Planet has 16 utility partners nationwide in states such as Florida, Massachusetts, New York and Rhode Island. Our mission: To harness the power of consumer demand to convert at least 10% of the nation's electricity production to environmentally preferable energy that is renewable, diverse, domestically based and low impact by 2012, while stimulating local economies and creating jobs.

About Alternate Energy Corporation (AEC; www.cleanwatts.com):

Alternate Energy Corporation (AEC) is energizing the hydrogen economy. AEC is the first company to provide a hydrogen device for small-scale, on-demand distributed generation of electricity. The device is immediately deployable and qualifies for Renewable Energy Certificates. AEC's proprietary 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.

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 ARGY's Securities and Exchange Commission filings, including Form 10-KSB 10-QSB and 8-K. Actual results may differ materially from management's expectations.

Additional information is also available on the company's website at www.cleanwatts.com


Contact:
     CEOcast, Inc.
     Cormac Glynn, 212-732-4300
     or
     Alternate Energy Corporation
     Suzanne Brydon, 519-620-2623


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