Advanced Engine Technologies Inc. Unveils Design Level 3 OX2 Engine at Its Annual Shareholder Meeting

LOS ANGELES, Jan. 25, 2005 -- Advanced Engine Technologies Inc. unveiled it's new OX2 Design Level 3 engine at its Annual Shareholder Meeting in November. The first beta test of this new design level engine is expected in the 3rd quarter of 2005 along with the testing of the new OX2 30 kilowatt integrated generator unit in co/development with Danotek Motion Technologies.

"Our engineering team have taken the OX2 engine to the next level of commercialization," said John Luft, AET's Chief Operating Officer. "This design level is expected to give the OX2 the necessary endurance and performance improvements to successfully compete in the commercial markets."

This newly developed and patented generator design is expected to add only 12" in overall length to the existing OX2 engine and is approximately 25% the total weight of current units in the market. The prototype's versatility allows for horizontal or vertical mounting and operations, resulting in diverse applications and uses. The integrated generator is expected to compete in the alternative power generator market as well as run on alternative fuels. A beta version of AET's first OX2 Integrated Generator is expected in the summer of 2005. Final testing, certification and market evaluations will follow.

In addition, shareholders viewed a demonstration of one of AET's Design Level 2 OX2 engines successfully powering a Lincoln Electric welding/generator unit. Engineers continue their work on the electronics and control integration in order to improve optimum performance and reliability.

The OX2 is a 4-stroke, 1.1-liter internal combustion engine that is 17 inches in diameter with a length of 13 inches and a total weight of 179 pounds in normally aspirated form. The compact engine weighs 75 percent less than and is half the size of traditional internal combustion engines. In addition, it offers the flexibility of being able to run on a variety of fossil fuels including gasoline, diesel, natural gas, liquid propane or methane. In addition, with far fewer moving parts than traditional engine designs, the OX2 engine could offer the further advantages of significantly enhanced operation and maintenance costs and a longer useful life.

With its expected higher power-to-weight ratio, multi-fuel capacity and anticipated low emissions and high fuel efficiency, the OX2 has a practical and much needed application in the commercial and industrial generator markets. Additional future applications may include marine, light-duty farm and construction equipment, light aircraft, and the hybrid electric vehicle market. However, the near term focus remains electrical generator applications.

Investor inquiries can be directed to the company at (310) 914-9599. To update the investment community and all interested parties about the progress of the OX2 engine, Advanced Engine Technologies has established a hotline at 310/323-2895.

Additional information pertaining to the OX2 engine can be accessed through the company's Web site at www.ox2engine.com.