SOURCE: ALL Fuels & Energy Company

August 28, 2007 08:00 ET

ALL Fuels & Energy Signs Final $10.4 Million Tax Credit Agreement With Iowa Department of Economic Development

Company's Total State and Local Incentives in Excess of $17 Million

DES MOINES, IA--(Marketwire - August 28, 2007) - ALL Fuels & Energy Company (OTCBB: AFSE) announced today that its subsidiary, ALL Energy Manchester, LLC (the "Manchester Subsidiary"), signed the final agreement with the State of Iowa's Department of Economic Development for a sales and use tax credit in an amount in excess of $10.4 million for High Quality Job Creation. The tax credits are in support of AFSE's proposed 100 million gallon per year ethanol production facility in Manchester, IA.

"Once the plant is operational, this agreement with the Iowa Department of Economic Development and our agreement with the City of Manchester will bring our company over $17 million in economic benefits that will fall straight to our bottom line," said Dean Sukowatey, President, ALL Fuels & Energy. "We continue to find that the State of Iowa and the City of Manchester are great partners on the Manchester project."

Mr. Sukowatey also explained that AFSE has received approximately $6.6 million in infrastructure improvements and property tax abatements from the City of Manchester, IA, in addition to the Iowa Department of Economic Development incentives. The City has agreed to provide the Manchester Subsidiary with sewer service to the facility site, roadway improvements to the facility site and a 10-year property tax abatement.

About ALL Fuels & Energy Company

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AFSE recently acquired ALL Energy Company, a development-stage ethanol company organized to operate as an ethanol producer, focusing primarily on the production and sale of ethanol and its co-products. AFSE has adopted the business plan of ALL Energy Company. To date, AFSE has: obtained $2 million in private equity funding; purchased 150 acres on which to build its proposed ethanol production facility in Manchester, Iowa; signed a five-plant engineering and design agreement with Delta-T Corporation (Delta-T is a Virginia-based company with over twenty years of experience in the ethanol industry that management believes possesses superior expertise and superior technologies in the ethanol production space); engaged Natural Resources Group to handle water-related environmental matters relating to the proposed Manchester ethanol production facility; through the efforts of its air-related environmental consultant, Yaggy-Colby, obtained the final Air Quality Construction Permit, relating to the proposed Manchester ethanol production facility; and investigated and become involved in the potential acquisition of one or more existing ethanol production facilities, including Ace Ethanol.

Forward-Looking Statements

Certain matters discussed in this press release are "forward-looking statements." These forward-looking statements can generally be identified as such because the context of the statement will include words such as "expects," "should," "believes," "anticipates" or words of similar import. Similarly, statements that describe AFSE's future plans, objectives or goals are also forward-looking statements. Such forward-looking statements are subject to certain risks and uncertainties, including the ability of AFSE to obtain needed financing, as well as the financial performance of AFSE, which could cause actual results to differ materially from those anticipated. Although AFSE believes the expectations reflected in any forward-looking statements are based on reasonable assumptions, it cannot give any assurance that such expectations will be fulfilled. Shareholders, potential investors and other readers are urged to consider these factors carefully in evaluating any forward-looking statements. Certain factors could cause results and conditions to differ materially from those projected in these forward-looking statements. These factors are not exhaustive. New factors, risks and uncertainties may emerge from time to time that may affect the forward-looking statements made herein. These forward-looking statements are only made as of the date of this press release, and AFSE does not undertake any obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances.

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