American Electric Automobile Company, Inc. Announces Agreement to Purchase Cyper Entertainment Inc.

    MARKHAM, Ontario--March 27, 2002--American Electric Automobile Company, Inc. (Pink Sheets:AEAC) announces that it has entered into an agreement to purchase 100% of the shares of Cyper Entertainment Inc. of Seoul, Korea, which is a privately held 3D Digital Animation Company providing its services to the television, commercial and film industries.
    AEAC will satisfy the purchase price for the shares of Cyper through the issuance of 20 million restricted common shares of AEAC or equivalent consideration, subject to regulatory guidelines and customary due diligence.
    Established in January 2000, Cyper currently has 47 employees and a state-of-the-art facility producing the finest in 3D digital animation. Cyper has already produced many highly respected works since its inception including "The 5th Glacial Epoch" and "Q-Pet Project", for which it won the National Fund for Promoting Cultural Industry in Korea.
    Cyper's most notable claim to fame is its production of the 3D animated short film, "Angel". "Angel" was nominated in the Short Film and Animation categories at several international film festivals and was awarded 1st prize at the Japan Digital Contents Grand Prix 2001. This was a highly significant victory for Cyper as Japan is one of the top worldwide producers and distributors of animated productions. Further information about Cyper can be viewed at its website, www.cyper.co.kr.
    "We are extremely pleased with our new direction into the industry of 3D Digital Animation" stated Pierre Quilliam, President of AEAC. The popularity of such films as DreamWorks' "Shrek", Disney/Pixar's "Toy Story" and most recently, 20th Century Fox's "Ice Age", leave little doubt that the market for high quality, 3D digital animation is enormous. We believe that Cyper has proven through its past productions and awards that it has the ability to produce animation of the highest quality which we intend to introduce into the North American market."
    Upon closing of the transaction, AEAC will be changing its name to one more appropriate to the animation industry.
    Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: The statements contained herein which are not historical are forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements, including, but not limited to, certain delays beyond the company's control with respect to market acceptance of new technologies or products, delays in testing and evaluation of products, and other risks detailed from time to time in the Company's filings with the Securities and Exchange Commission.