SOURCE: American Alternative Energy Systems Corp.

February 28, 2008 15:32 ET

American Alternative Energy Systems Corp. Completes Agreement for Canadian Rights to Company's Anaerobic Digester Systems

DENTON, TX--(Marketwire - February 28, 2008) - American Alternative Energy Systems Corp. (PINKSHEETS: AATV) (AAESC), a company focused on reducing greenhouse gas emissions and making a more sustainable environment through renewable energy, has concluded an agreement to grant the Canadian rights to our Anaerobic Digester Systems to Canadian Alternative Renewable Energy Systems Inc. (CARES).

American Alternative Energy Systems will receive 1 million dollars for the initial rights and 3 percent of all sales generated by the Anaerobic Digester System. Canadian Alternative Energy Systems Inc. expects to have the systems in operation at selective sites throughout Canada by May 1, 2008. AAESC continues to aggressively expose the competitively priced digesters to the virtually untapped North American market. The digester market is small in Canada with an estimated 10 digesters compared to roughly 100 in the US and 2,400 in Europe. AAESC's goal is to become Canada's market leader in digesters.

www.arenergysystems.com

About American Alternative Energy Systems Corp.

American Alternative Energy Systems Corp. (AAESC) is a company focused on reducing greenhouse gas emissions and making a more sustainable environment through renewable energy. There are three different types of renewable energy in the market: wind, solar, and biomass. Of the three, biomass is the most economical and can solve other issues, making it a superior energy source.

AAESC will produce Anaerobic Digesters that will turn manure and other bio-waste into electricity and heat. The digester will solve the farmers' manure disposal problems, and will produce electricity, heat, and income for the farm (the excess electricity will be sold to the hydro grid).

AAESC's goal is to become Canada's market leader in digesters. It plans to become the leader by offering farmers the digester at no cost, simplifying the purchase process.

Forward-Looking Statements

This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Statements in this release that are forward-looking statements are based on current expectations and assumptions that are subject to known and unknown risks, uncertainties, or other factors which may cause actual results, performance, or achievements of the company to be materially different from any future results, performance, or achievements expressed or implied by such forward-looking statements. Actual results could differ materially because of factors such as the effect of general economic and market conditions, entry into markets with vigorous competition, market acceptance of new products and services, continued acceptance of existing products and services, technological shifts, and delays in product development and related product release schedules, any of which may cause revenues and income to fall short of anticipated levels. All information in this release is as of the date of this release. The company undertakes no duty to update any forward-looking statement to conform the statement to actual results or changes in the company's expectations.

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