LAS VEGAS, Jun 8, 2004 (BUSINESS WIRE) -- Alternate Energy Corporation (OTCBB: ARGY or "AEC") announced today that they, together with Feel Good Cars Inc. (FGC) and others, intend to produce a prototype hydrogen powered internal combustion engine electric vehicle. Alternate Energy will retrofit a FGC's ZENN(TM) (Zero Emissions No Noise) Urban Low Speed Electric Vehicle. The Company believes the resultant vehicle will demonstrate that a hydrogen powered car can be produced at a price affordable to middle income households.
Feel Good Cars intends to provide the platform and technical know-how relative to their ZENN(TM) electric technology. Alternate Energy intends to provide its proprietary, on board, hydrogen generator unit to produce on demand hydrogen that will power the car's hybrid drive system. Alternate Energy anticipates that the project can provide an alternative to large electric vehicle battery systems and thereby eliminate the need to recharge via electricity produced from the burning of fossil fuels.
The objective is to demonstrate that the Feel Good Cars' urban electric hybrid-drive low speed vehicle, powered by Alternate Energy's on board proprietary hydrogen production system, can prove to be a viable alternative to the zero emission standards solution. The resulting system should enable FGC to produce affordable, non-polluting, mass market vehicles that do not require gasoline, natural gas, or other fossil fuels. The automobile can, in effect, produce power from water by virtue of Alternate Energy's technology.
The working prototype intends to have Alternate Energy's hydrogen system generate, on board hydrogen, that can power a small non polluting Internal Combustion Engine ("ICE"). This ICE can drive a newly developed alternator that can produce electricity to power the electric motor of the vehicle. In addition, the new alternator can be used to recharge the batteries that are simultaneously being used to power the electric propulsion motor of the vehicle. Anticipated key benefits of this system are low cost, no hazardous emissions, increased range and elimination of downtime attributed to recharging. Alternate Energy believes that the initial sales price of the vehicle should not be overburdened by the use of the new technology and that the operating fuel cost should be less than the existing cost of gasoline.
"With the exception of our hydrogen generation system, all of the technology involved in making this automobile a reality is already proven. As we know from our research and development findings, our on board hydrogen generation system can economically produce the required hydrogen. As well, by producing electricity while underway, the range of the vehicle can be greatly enhanced which overcomes the limited range problem associated with existing electric vehicles. That, coupled with an affordable, non-polluting, electrically powered automobile, can assist in reducing automobile emissions. It is the Company's intention to have a demonstration vehicle this year." said Blaine Froats, Chairman of Alternate Energy.
Alternate Energy's development of this electrically powered vehicle is made possible by its recent acquisition of the rights to use the formulation in conjunction with a hydrogen powered ICE.
According to Wired Magazine (May 2004 issue), hybrid car sales are estimated to cross the 2% of all U.S. car sales threshold in 2008, with most domestic and foreign automotive manufacturers working on plans to launch their own hybrid models within a few years.
Pictures of the demonstration vehicle will be available at Alternate Energy's corporate website, www.cleanwatts.com.
About Alternate Energy Corporation (Alternate Energy; www.cleanwatts.com):
Alternate Energy Corporation (Alternate Energy) intends to provide a hydrogen system that has mass-deployment economics and provides small-scale, on-demand distributed generation of electricity. The Company anticipates shipping initial hydrogen production and electricity generation systems in late 2004 and that they will qualify for Renewable Energy Certificates. These units can include either a fuel cell or hydrogen internal combustion engine as part of the electricity generation process. Alternate Energy's proprietary discovery in metallurgy permits a small-scale unit to generate hydrogen from water through a "green" system at a price competitive with the fossil fuel kWh cost of energy.
About Feel Good Cars (www.feelgoodcars.com):
Feel Good Cars is a leading developer, manufacturer and supplier of electrically powered vehicles. Feel Good Cars thrives on providing drivers with vehicle choices they can feel good about. Working with their internationally respected partners, they are bringing the world(1)s finest zero-emission vehicles to the public setting a new standard for what electric vehicles can be. The culmination of this passion for quality is the ZENN(TM) (Zero Emissions No Noise) vehicle.
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.
SOURCE: Alternate Energy Corporation
