Energy & Engine Technology Announces Highlights for the First Two Quarters of 2004

PLANO, Texas, July 15 -- Energy & Engine Technology Corporation (BULLETIN BOARD: EENT) (EENT) announces the following highlights for the first two quarters of 2004:

  Substantial Percentage Revenue Increase:

   --  Gross revenues for 2003 increased by 286% over 2002.
   --  Gross revenues for first quarter of 2004 increased by 87% over the
       first quarter of 2003.

Securing Supply and Assembly Processes and Commencement of Operation of New Facility:

Our biggest accomplishment has been the securing of our supply and assembly processes through the acquisition of BMZ Generators, effective as of July 1, 2004. Through this acquisition, all of our generator supply is now "in house" with direct access to the manufacturer in Brazil, and we now own our contract assembler for the AXP 1000, thus we directly control our supply and production chain. The new 10,000 square foot production facility, owned by former BMZ owner, Freddy Pereira, is substantially complete and should be ready for EENT's operation by early August 2004, thus allowing EENT to produce AXP 1000 units in quantity, along with production of generators for other opportunities.

Potential Business Opportunities Through BMZ Acquisition:

The acquisition of BMZ has also brought other exciting potential business opportunities to EENT in the generator markets.

-- BMZ has had a long standing relationship with a US Department of Defense Contractor who supplies generator products to the US Military. Current discussions are in progress regarding BMZ's assistance with contract fulfillment of a special generator design which has been prototyped and field tested by the military. The product has been accepted by the military and initial orders have been placed. BMZ would provide particular components for the initial orders. The next step would be an Agreement for BMZ to assemble the product at its new facility. Quantities are projected to be 1200 - 1500 generator sets per year.

-- BMZ has entered into a contract with a Brazilian Company to represent it in the acquisition of business with the Brazilian Government. An authenticated copy (by the American Consulate) of the contract was recently received. The Brazilian Government requires a Brazilian Company intermediary for acquisitions from outside their Country. BMZ has worked toward consummation of the relationship since mid 2002. The Brazilian Company projects a total of $20,000,000.00 in business over a 10-year period beginning with $200,000 in the first year and $2,000,000 per year thereafter.

-- Through BMZ's contacts, EENT is negotiating a purchase order with a Florida building contractor to provide a significant amount of generators over the next 12 months. Quantities are projected to be in excess of 50 generators.

-- Quotations have been requested by several other companies for generator products for stationary installation, military applications, and mobile equipment applications for up to a total 70 units of varying capacities up to 24 KW.

This order flow can be directly attributed to BMZ's track record as a source of choice for generator solutions for a variety of special operating applications, the increase in production capacity afforded by the new production facility and the financial resources of EENT.

Lobbying Update:

-- EENT is a charter member of the Idle Elimination Manufacturers Association ("IEMA"), which intends to lobby federal lawmakers into adopting strong anti idling measures at the federal level.

Finance Updates:

On the finance front, EENT's auditors, Marcum & Kliegman lifted the "going concern" qualification from our financial statements and delivered a "clean" audit opinion for our 2003 audit. EENT also successfully completed a private placement of over $1,500,000. Given the expansion of our business in Florida, we have determined that we have outgrown our local banking relationship with Compass Bank and are pursuing establishment of an interstate relationship with a major national bank and intend to take advantage of this commercial relationship in many aspects, including commercial lending needs (i.e.: accounts receivable financial) in the future, as warranted.

About Energy & Engine Technology Corporation (EENT)

EENT (http://www.eent.net/ ), headquartered in Plano, Texas, develops and markets auxiliary power generators for the long haul trucking industry. The Company's common stock is traded on the OTC Bulletin Board under the symbol "EENT". The Company's flagship product, the AXP 1000, is an idle-reduction technology device, designed for new and retrofit installation on semi truck tractors, that provides power generation without requiring the operation of the truck's engine. Powered by an EPA-approved and CARB-certified engine, the AXP 1000 maintains the truck's battery power while delivering electricity for air conditioning, heating, and the operation of televisions, appliances and other devices, to the sleeper cab, thereby reducing fuel consumption, air/noise pollution and long-term truck maintenance costs. (Instead of the 10-15 gallons of diesel fuel consumed through idling each day, the AXP 1000 consumes approximately 1 gallon of diesel fuel in an equivalent amount of time.) The Company is targeting a significant market opportunity created by governmental mandates that limit the aggregate amount of idling time available to long haul truckers. Management believes that Federal and State regulations, along with new and more stringent legislation that became effective in January 2004, have paved the way for a $2.5 billion industry. There are an estimated 500,000 or more Class 8 sleeper trucks currently operating in the U.S., with over 80,000 new Class 8 trucks being produced each year. Management believes that even moderate penetration of the market for anti-idling devices could result in significant sales and earnings for the Company. Anticipated metrics on unit sales suggest that for each 1,000 AXP 1000 units sold (at $5,000 each), the Company should generate gross revenue of approximately $5,000,000.

The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for forward-looking statements. Certain information included in this communication (as well as information included in oral statements or other written statements made or to be made by Energy & Engine Technology Corporation) contains statements that are forward-looking, such as statements relating to the future anticipated direction of the high technology and energy industries, plans for future expansion, various business development activities, planned capital expenditures, future funding sources, anticipated sales growth and potential contracts. Such forward-looking information involves important risks and uncertainties that could significantly affect anticipated results in the future and, accordingly, such results may differ form those expressed in any forward-looking statements made by or on behalf of Energy & Engine Technology Corporation. These risks and uncertainties include, but are not limited to, those relating to development and expansion activities, dependence on existing management, financial activities, domestic and global economic conditions, changes in federal or state tax laws, and market competition factors.