Astris Energi, Alternate Energy Corp. Plan Fuel Cell, Hydrogen Production Joint Venture

MISSISSAUGA, Ontario--Aug. 5, 2003--Astris Energi Inc. (OTCBB:ASRNF), world leader in alkaline fuel cell technology, announced today that it has signed a Letter of Intent with Alternate Energy Corp. (OTCBB:ARGY), which has acquired the rights to a unique and reportedly low-cost technology for the production of hydrogen gas required for fuel cell operation.

The proposed joint venture plans to combine these fuel cell and hydrogen technologies to produce and sell complete stationary electric power systems for the vast household and business markets.

According to Jiri K. Nor, President and CEO of Astris Energi, the company and its Czech Republic affiliate, developed and delivered more than two years ago a four-kilowatt fuel cell to provide electricity, heat and hot water for individual homes and small businesses. It has also been operating a golf car powered by a two-kilowatt Astris alkaline fuel cell "engine" since early 2001.

Fuel cells generate electric energy through a chemical reaction between hydrogen gas and oxygen from the air. They are noiseless, odourless and release no pollutants to the atmosphere, the only effluent being pure water one can drink.

"The fuel cell industry has long awaited a cost effective method of extracting the high quality hydrogen gas required to run the fuel cell," said Blaine Froats, Chairman of Alternative Energy Corp. "The merging of a reliable alkaline fuel cell (Astris) with a low-cost supply of hydrogen (AEC) is expected to provide the market with an affordable fuel cell for the consumer. The prospective joint venture with Astris will place our two companies in the forefront of the industry," he asserted.

Under the Letter of Intent, set-up of the Joint Venture operation will begin within sixty days, following completion of hydrogen quality tests using the new AEC process.

Founded in March, 2000, AEC also owns patented technologies that enable electric utility and large industrial companies to increase their power output while reducing fossil fuel consumption, pollution and operating costs.