Alternate Energy Corporation

Alternate Energy Corporation

March 04, 2005 08:00 ET

AEC Announces Completion of $1.5 Million Private Financing


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: ALTERNATE ENERGY CORPORATION

OTC Bulletin Board SYMBOL: ARGY

MARCH 4, 2005 - 08:00 ET

AEC Announces Completion of $1.5 Million Private
Financing

BURLINGTON, ONTARIO--(CCNMatthews - March 4, 2005) - Alternate Energy
Corporation (OTCBB:ARGY) -

CEO BLAINE FROATS: Placement Accelerates Key Initiatives

Alternate Energy Corporation (OTCBB:ARGY) announced the completion of a
$1.5 million private placement with a group of institutional investors.

The financing consists of $1.5 million USD on a convertible note to 5
accredited investors, with warrants to purchase up to another $1.5
million within 90 days of the effective date of a registration
statement, to be filed by AEC. The investors will also retain 1,762,570
warrants with an exercise price of $.40 per share, which will provide
additional equity upon their exercise.

The proceeds will be used for the pre-commercial stage of operations,
development of alpha stage units for initial customer prospects, and to
support the Company's patent initiatives.

AEC's Chairman and C.E.O. Blaine Froats commented, "This recently
completed financing accelerates a number of key initiatives for us,
including the completion of the full design, assembly, and testing of
our hydrogen production demonstration units, which will be used to power
both the Internal Combustion Engine (ICE) and Fuel Cell platforms."

Froats continued to say, "AEC continues on its path towards
commercialization of its hydrogen generator, and we continue to move
forward, focusing on upcoming key milestones. The Company is positioning
itself for significant advancements in the execution of its business
strategy in the coming months."

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

Alternate Energy Corporation (AEC) intends to provide a hydrogen fuel
system that has mass-deployment economics and provides small-scale,
on-demand distributed generation of electricity. The Company anticipates
scheduling product demonstrations with key strategic partners in the
first quarter of 2005, then shipping initial hydrogen production and
electricity generation systems later in 2005. AEC's proprietary
discovery in metallurgy permits a small-scale unit to generate hydrogen
from an aqueous solution through a "green" system at a price competitive
with the current fossil fuel kWh cost of energy.

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

-30-

Contact Information