Energy & Engine Technology Corporation Closes on $1.7 Million Private Placement: Clarification

PLANO, Texas, Aug. 11, 2004 -- On August 10, 2004, EENT issued a press release regarding its recently closed $1.7 million private placement. In response to inquiries from various third parties, the following is a basic summary of the transaction which is qualified in its entirety by and further detailed in EENT's Current Report on Form 8-K, filed with the Securities and Exchange Commission on August 10, 2004.

The funds were invested pursuant to 7.0% Convertible Debentures, dated as of July 29, 2004 (the "Debentures"). The Debentures are convertible into EENT Common Stock at any time at the holder's discretion in part or in whole by dividing the principal amount converted by a price ("Conversion Price") equal to 85% of the Market Price (average inter day trading price during the 10 immediately preceding trading days). In no event shall the Conversion Price be higher than $.39 nor lower than $.10. At all times beneficial ownership of EENT Common Stock shall not exceed 9.99% on an as converted basis. Conversion Price is adjusted equitably for stock splits and the like.

About Energy & Engine Technology Corporation (BULLETIN BOARD: 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 from 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.