California Electric Automobile Company's Board of Directors Responds Decisively

10 November 2000

California Electric Automobile Company's Board of Directors Responds Decisively

    MARKHAM, Ontario--Nov. 10, 2000--California Electric Automobile Company ("CEAC"), a subsidiary of American Electric Automobile Company, Inc. (OTCBB:AEAC) announces that due to cash flow considerations, a majority of the Board of Directors of CEAC deemed it necessary to lay off the employees effective November 3rd, 2000.
    The Board of CEAC hopes that the lay off will be temporary in nature and that the employees will be reinstated in the future.

    About American Electric Automobile Co....

    The American Electric Automobile Company (A.E.A.C) incorporated in Delaware and operating in California has been successfully converting automobiles to electric power since 1996. The company also remanufactures conventional gas-powered cars into hybrid electric vehicles. Among the remanufactured products are popular vehicles converted to electric power including the Volkswagon Cabriolet, the Ford Escort, and the Ford Ranger pick-up truck. These are designed with a hybrid-electric option in the form of a small on-board, gasoline-powered generator that can recharge the batteries. The company is also participating in a joint venture to produce hybrid-electric automobiles in China. A.E.A.C. uses DC technology standard components which helps bring vehicles to market at a lower price than much of its competition which uses AC technology. The company's mission is to provide environmentally sensitive, high quality, cost-effective auto transportation through domestic production and cooperative opportunities with global partners.

    For more information, contact:
    Pierre Quilliam, President
    7270 Woodbine Avenue, Suite 200
    Markham, Ontario
    Tel: 905-947-9925 Fax: 905-947-9930

    Forward Looking Statement

    This press release contains forward looking statements relating to future results of the company as defined in the Private Securities Litigation Reform Act of 1995. Actual results may differ materially as a result of certain risks and uncertainties. These risks and uncertainties include, but are not limited to: the closing of the transaction; global and market conditions within the electric automobile (EV) industry; demand for and market acceptance of new and existing products; successful development of new products; the timing of new product introductions; pricing pressures and other competitive factors; the ability to develop and implement new technologies and to obtain protection for the related intellectual property; as well as other risks and uncertainties, including but not limited to those detailed from time to time in the company's Securities and Exchange Commission filings. These forward looking statements are made only as of the date hereof, and the company undertakes no obligation to update or revise the forward looking statements, whether as a result of new information, future events or otherwise. Other brands and names contained in this release are the property of their respective owners.