AENG Advanced Engine Technologies I (CE)

Advanced Engine Technologies, Inc., (Pink Sheets: AENG) reported at its Annual Shareholder Meeting in December 2007, that it has achieved a performance milestone for its OX2 engine by reaching over 300 ft. lbs. of torque along with 46 horsepower at an approximate operating speed of 700 RPM. Shareholders could watch generous horsepower and torque being churned out by the OX2 engine, while AET engineers put it through its paces during the meeting. �This third generation OX2 engine has demonstrated the best operating performance and mechanical reliability to date,� said John Luft, the company�s Chief Operating Officer. �The AET engineering staff has overcome many development hurdles in achieving what we now consider to be AET�s first commercial-bound OX2 engine.� Along with a very successful OX2 engine showing, AET demonstrated its new 30 Kw Variable Speed Propane Generator, which is powered by a General Motors 4cylinder industrial engine. The AET 30 Kw Variable Speed Propane Generator exhibited its range of power and performance, though it is an impressive 50 percent less in size and weight compared to its commercial generator industry counterparts. �This latest development cycle has broadened our thinking and is expected to give AET multiple products to offer consumers,� added Luft. �In addition to a stand alone AET OX2 engine, we expect to offer our new generator in a stand alone application, powered by a conventional engine or the OX2 unit.� The company expects to begin demonstrating its 30 Kw Variable Speed Propane Generator to interested parties by the second quarter of this year. AET also expects to complete endurance testing of the OX2 engine during that same timeframe, and subsequently coupling it to its variable speed generator resulting in the first OX2 engine powered generator. The OX2 is a 4-stroke, 1.1-liter internal combustion engine that is 17 inches in diameter with a length of 13 inches and a total weight of 200 pounds, in normally aspirated form. The compact engine is 75 percent lighter and half the size of traditional internal combustion engines. In addition, it offers the flexibility of being able to run on a variety of fossil fuels including gasoline, diesel, natural gas, liquid propane or methane. With far fewer moving parts than traditional designs, the OX2 engine could offer the advantages of significantly enhanced operation, lower maintenance costs and a longer useful life. �With its expected higher power-to-weight ratio, multi-fuel capacity and anticipated low emissions and fuel efficiency, the OX2 has a practical and much needed application in the commercial and industrial generator markets,� explained Luft. �Additional future applications may include marine, light-duty farm and construction equipment, light aircraft and the hybrid electric vehicle market. However, the near term focus remains on electrical generator applications.� Investor inquiries can be directed to the company at (310) 914-9599. To update the investment community and all interested parties about the progress of the OX2 engine, Advanced Engine Technologies maintains a company web site at www.ox2engine.com. Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995 This release may contain forward-looking statements involving risks and uncertainties that may cause actual future events or results to differ materially and adversely from those described in the forward-looking statements. Important factors that may cause such a difference for AET include, but are not limited to, whether our engine products are made viable, whether a market for our products develops, our ability to retain key management, our ability to hire and retain the technical personnel necessary to build our products, the availability of funding for future operating requirements, our ability to effectively predict or react to rapid technology changes that could render our products obsolete, product development delays, dependence on suppliers, our potential exposure to product liability and other tort claims if our products fail, our ability to protect our intellectual property, intellectual property disputes, and other factors discussed in AET filings from time to time with the Securities and Exchange Commission. AET cautions that the foregoing list of important factors is not exclusive. AET disclaims any obligation to revise or update any forward-looking statement that may be made from time to time by or on its behalf.