American Electric Automobile Company, Inc. Withdraws From China

    MARKHAM, Ontario--Feb. 15, 2001--American Electric Automobile Company, Inc. (OTCBB:AEAC) announces that the Board of Directors has decided to withdraw from participation in a joint venture to produce hybrid electric automobiles in China due to inherent risks in business conditions in China and the difficulty of monitoring the activity.
    "The decision was taken after careful consideration," said Pierre Quilliam, President and CEO. "We plan to allocate our resources where they will be most effective in achieving our business objectives."
    The Company sold its interest in American Electric Automobile Company (Asia) Inc., being 45% of the issued and outstanding shares, to Edward F. Myers, the former Chairman of the company. Mr. Myers is currently on the Board and President of the company's wholly owned subsidiary, California Electric Automobile Company, Inc.

    About American Electric Automobile Co....

    The American Electric Automobile Company (A.E.A.C) incorporated in Delaware and operating in California has been successfully converting automobiles to electric power since 1996. The company also remanufactures conventional gas-powered cars into hybrid electric vehicles. Among the remanufactured products are popular vehicles converted to electric power including the Volkswagon Cabriolet, the Ford Escort, and the Ford Ranger pick-up truck. These are designed with a hybrid-electric option in the form of a small on-board, gasoline-powered generator that can recharge the batteries. A.E.A.C. uses DC technology standard components which helps bring vehicles to market at a lower price than much of its competition which uses AC technology. The company's mission is to provide environmentally sensitive, high quality, cost-effective auto transportation through domestic production and cooperative opportunities with global partners.

    Forward Looking Statement

    This press release contains forward looking statements relating to future results of the company as defined in the Private Securities Litigation Reform Act of 1995. Actual results may differ materially as a result of certain risks and uncertainties. These risks and uncertainties include, but are not limited to: the closing of the transaction; global and market conditions within the electric automobile (EV) industry; demand for and market acceptance of new and existing products; successful development of new products; the timing of new product introductions; pricing pressures and other competitive factors; the ability to develop and implement new technologies and to obtain protection for the related intellectual property; as well as other risks and uncertainties, including but not limited to those detailed from time to time in the company's Securities and Exchange Commission filings. These forward looking statements are made only as of the date hereof, and the company undertakes no obligation to update or revise the forward looking statements, whether as a result of new information, future events or otherwise. Other brands and names contained in this release are the property of their respective owners.