SOURCE: Alternate Energy Corporation

November 16, 2006 03:00 ET

Executive Summit Concludes With Actionable Results

AEC/BOM Formalize Business Relationship to Build a Revenue Producing Pilot Plant

BURLINGTON, ON -- (MARKET WIRE) -- November 16, 2006 -- Alternate Energy Corporation (AEC) (OTCBB: ARGY), the developer of innovative hydrogen production technologies and select chemical products, today announced the results of an executive visit by BOM-Brasil Óleo de Mamona Ltda. last month.

The purpose of the summit was to begin formalizing a strategic business relationship with BOM and to draft an executable implementation plan to build an on-site pilot plant, directly supplying bulk hydrogen to its hydrogenation facility, at a significantly reduced cost to BOM. AEC's pilot plant would simultaneously produce premium commodity chemical products for sale into world markets from BOM's location in the port of Salvador, Brasil.

The weeklong meeting primarily focused on discussions with BOM's financial liaison, Mr. Naylo da Cunha Oliveira, and AEC's executive team on the topic of pilot plant capital requirements, projected operational costs and a practical implementation plan. Headed by AEC's Chairman, Blaine Froats, further dialogue concentrated on defining a feasible business agreement between the two companies, while a technology review by AEC's Advisory Board Chairman, Dr. Raymond Legge of the University of Waterloo, highlighted an additional biochemical initiative that we believe may effectively capitalize on BOM's current waste streams to produce hydrogen.

The meeting concluded with actionable results. Based on the success of these discussions, it was agreed to finalize a formal business proposal between BOM and AEC, as well as a jointly prepared presentation summarizing the progress made at the summit to BOM executives and identified investors. Both parties agreed to continue working closely together on the completion of projected financials for the pilot operation, reflecting local (Brazilian) costs by the end of November 2006.

Mr. Oliveira commented on the week's accomplishments by stating, "I am extremely pleased with the significant progress made over the past visit and am excited for the relationship our companies are building together. We all worked exceptionally well over the 10-day conference to forge a mutually beneficial arrangement that can only be viewed as 'win-win' for both parties. I look very much forward to continue working with AEC's team on this exceptional opportunity that lies before us."

About BOM-Brasil

Founded in 1988, BOM-Brasil Óleo de Mamona Ltda. is a major worldwide producer of castor oil and several of its derivatives, and supplies its products to many clients all around the globe. BOM has long recognized its place in increasing quality, environmental and social concerns by end-consumers. BOM-Brasil is ISO 9000 certified since 1995 and fully complies with all environmental requirements. Its production facility is located in the city of Salvador, in Bahia State, situated in northeastern Brazil. Its location is strategically located, with Salvador being one of the largest and oldest shipping ports in South America. For more information go to: www.bombrasil.com.

About Alternate Energy Corporation

AEC is energizing the hydrogen economy with its on-demand hydrogen production technology that provides small-scale electricity, bulk production of hydrogen and a saleable by-product. These systems have global opportunities in multiple market segments. AEC's proprietary discovery in process technology permits the generation of hydrogen from water through a "green" process at a competitive level to the fossil fuel kWh cost of energy. AEC believes its systems can have a revolutionary impact on the energy industry. For more information go to: www.cleanwatts.com

Forward-Looking Statements:

This report may contain forward-looking statements that involve risks and uncertainties. AEC generally uses words such as "believe," "may," "could," "will," "intend," "expect," "anticipate," "plan," and similar expressions to identify forward-looking statements. You should not place undue reliance on these forward-looking statements. AEC's actual results could differ materially from those anticipated in the forward-looking statements for many reasons, including, but not limited to, raising working capital and securing other financing; responding to competition and rapidly changing technology; and other risks. These risks are detailed in AEC's Form 10-KSB and other reports filed with the Securities and Exchange Commission. Although management believes that the expectations reflected in the forward-looking statements are reasonable, they relate only to events as of the date on which the statements are made, and AEC's future results, levels of activity, performance or achievements may not meet these expectations. AEC does not intend to update any of the forward-looking statements after the date of this document to conform these statements to actual results or to changes in its expectations, except as required by law.

Contact Information

  • Contact:

    Investor Relations
    Mike Mulshine
    Osprey Partners
    732-292-0982
    osprey57@optonline.net

    Alternate Energy Corporation
    Administrative Offices
    3325 North Service Rd., Unit 105
    Burlington, ON Canada L7N 3G2
    905-332-3110
    info@cleanwatts.com