Aero Marine Engine, Inc. Signs Joint Venture with Adaptive Propulsion Systems, LLC

PORTLAND, Ore.--Sept. 1, 2004--Aero Marine Engine, Inc. on August 23, 2004 signed a Joint Venture Agreement with Adaptive Propulsion Systems, LLC (APS), a private company that intends to adapt Aero Marine's axial vector engine for military vehicles and multi-fuel combustion. Special features of the engine include 40% less moving parts with a corresponding weight reduction and improved torque, all desired traits for special military vehicles.

APS is a wholly-owned subsidiary of Tactronics, (www.tactronics.com), a key supplier of technology to the United States Special Operation Command.

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. In particular, when used in the preceding discussion, the word "believes," "expects," "intends," "will," "anticipated," or "may," and similar conditional expressions are intended to identify forward-looking statements within the meaning of the Act and are subject to the safe harbor created by the Act. Except for historical information, all of the statements, expectations and assumptions contained in the foregoing are forward-looking statements that involve a number of risks and uncertainties. It is possible that the assumptions made by management are not necessarily the most likely and may not materialize. In addition, other important factors that could cause actual results to differ materially include the following: business conditions and the amount of growth in the company's industry and general economy; competitive factors; ability to attract and retain personnel; the price of the Company's stock; and the risk factors set forth from time to time in the Company's SEC reports, including but not limited to its annual report on Form 10-KSB; its quarterly reports on Forms 10-QSB; and any reports on Form 8-K. Aero Marine Engine, Inc. does not take any obligation to update or correct forward-looking statements and also they do not take any obligation to update or correct information prepared by third parties which are not paid for by the Company.