SOURCE: Alternate Energy Corporation

January 31, 2007 14:44 ET

AEC Announces Addition of Two New Chemicals to Its By-Product Offering

Files Provisional Patent Applications; Hires Consultant to Refine Process

BURLINGTON, ON -- (MARKET WIRE) -- January 31, 2007 -- Alternate Energy Corporation (OTCBB: ARGY) announced that it has filed provisional patent applications with the U.S. Patent and Trademark Office to protect the development of two new proprietary processes for the production of a third and fourth commodity chemical by-product. Both by-products are made while simultaneously producing the Company's economical bulk hydrogen. These two additional by-products, potentially the most profitable to date, complement the Company's existing family of commodity chemical derivatives, now totaling four.

Mr. Blaine Froats, Chairman & CEO of AEC, stated, "Early market analysis indicates that our third commodity chemical by-product, a recognized food ingredient, has a world-market opportunity of $3.6 billion annually that is growing steadily at a rate of 4%. This represents the largest and most accessible market of the four by-products we can produce so far. The fourth by-product, commonly used in water purification, has an estimated market size exceeding $3 billion annually."

Under the terms of a provisional patent, the Company has one year to 'fine tune' its processes before they become officially filed. To spearhead this initiative, the Company has retained a specialized chemical consulting firm, led by Steve J. Bodzay, Ph.D., Chemistry, McGill University, with a background in organic chemistry. His firm, Bodzay & Company, Inc., will work with AEC's technical staff towards the certified refinement of its most recently developed by-products. Dr. Bodzay was referred to AEC by Mr. David I. Gordon, Advisory Board member and Vice-President, Secretary Treasurer of Experchem Laboratories Inc.

Mr. Froats continued, "It has been AEC's longstanding objective to insure product diversification by continuing to develop a wide range of valued by-products which can be readily sold into large and established global markets in high volume, with minimal impact on price. We are pleased with the recent advances made with the development of two new by-products and welcome the expertise of a specialized organic chemist to assist us with their further refinement.

"While it has taken a bit longer than expected to move forward with other initiatives, such as the BOM Brasil project, the need to have the provisional patent application filed for these latest by-products made delays in other areas unavoidable. AEC remains on track with its goal to have its first bulk hydrogen production plant installed and in production as soon as is feasibly possible," Mr. Froats concluded.

About Alternate Energy Corporation (AEC;

Alternate Energy Corporation (AEC) is energizing the hydrogen economy with a novel technology that provides bulk production of hydrogen and saleable chemical by-products. These systems have global opportunities in multiple market segments. AEC's proprietary discovery in metallurgy and process technology permits the generation of hydrogen through an environmentally "green" process at a competitive price. AEC believes its systems can have a revolutionary impact on a wide range of global industries.

Forward-Looking Statements:

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, raising working capital and securing other financing; responding to competition and rapidly changing technology; and other risks. These risks are detailed in AEC's filings with the Securities and Exchange Commission, including Forms SB-2, 10-KSB, 10-QSB and 8-K. Actual results may differ materially from such forward-looking statements.

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