American Alternative Energy Systems Energy Corp. (PINKSHEETS: AATV) company president Jeff Kulman announced today that the Company has reached an agreement in principle with Waste to Energy (Canada) Gasification Systems Inc. of Toronto, Ontario to obtain the distribution rights to the patented Waste to Energy ("WTE") downdraft gasifier technology for the Americas. The system was developed in the mid 90s in the UK, and was originally designed to produce energy from sewage sludge and other toxic organic wastes. Please feel free to visit www.waste-to-energy.co.uk for more details regarding this technology.

Recently the technology has been significantly upgraded so that it can process virtually any type of municipal solid waste stream, plus commercial and industrial wastes.

The WTE system is modular, with the biggest module capable of processing up to one dry tonne per hour of waste. This makes it ideal for processing small local waste streams, and in particular sewage sludge that has already been "digested" to remove most of the volatile organic materials. The WTE gasifier can convert sewage sludge, especially combined with other dry wastes such as municipal solid waste streams, to produce efficient engineered fuels for local power and steam production.

Dr. Wayne Maddever, Chief Executive Officer of Waste to Energy (Canada) Limited, said, "This is an exciting time in the renewable energy business, and we feel fortunate to have teamed up with a visionary company in American Alternative Energy Systems that understands the huge potential of our gasifier to revolutionize the waste to energy sector." Dr. Maddever added, "The WTE technology represents a significant breakthrough in the way we will destroy troublesome waste streams while producing local renewable energy. The focus of the waste to energy sector has evolved over the past few years away from incineration with waste heat recovery towards very efficient, low-emission gasification systems that produce a combustible gas, rather than simply burning the material to generate heat to produce steam." Dr. Maddever emphasized, "This relatively low BTU 'syngas' works extremely well with the new breed of specialized combined heat and power ('CHP') systems and maximizes the overall usage of the stored energy in the waste, while minimizing the huge volumes of NOx (nitrous oxides) produced by incineration of waste streams with free-flowing air."

As a result, Dr. Maddever contemplates a huge market for these small, modular systems, which can be multiplexed to service all but the largest waste processing facilities. "We at WTE Canada see an opportunity to provide a clean, inexpensive way of converting the most difficult and noxious waste streams into the maximum possible amount of energy, with no impact on the environment except a positive one."

www.aaenergysystems.com

About American Alternative Energy Systems Corp.

American Alternative Energy Systems Corp. (AAESC) is a company focused on reducing greenhouse gas emissions and making a more sustainable environment through renewable energy. There are three different types of renewable energy in the market: wind, solar, and biomass. Of the three, biomass is the most economical and can solve other issues, making it a superior energy source.

AAESC will produce Anaerobic Digesters that will turn manure and other bio-waste into electricity and heat. The digester will solve the farmers' manure disposal problems, and will produce electricity, heat, and income for the farm (the excess electricity will be sold to the hydro grid).

AAESC's goal is to become Canada's market leader in digesters. It plans to become the leader by offering farmers the digester at no cost, simplifying the purchase process.

Forward-Looking Statements

This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Statements in this release that are forward-looking statements are based on current expectations and assumptions that are subject to known and unknown risks, uncertainties, or other factors which may cause actual results, performance, or achievements of the company to be materially different from any future results, performance, or achievements expressed or implied by such forward-looking statements. Actual results could differ materially because of factors such as the effect of general economic and market conditions, entry into markets with vigorous competition, market acceptance of new products and services, continued acceptance of existing products and services, technological shifts, and delays in product development and related product release schedules, any of which may cause revenues and income to fall short of anticipated levels. All information in this release is as of the date of this release. The company undertakes no duty to update any forward-looking statement to conform the statement to actual results or changes in the company's expectations.

Contact: Jeffrey Kulman President American Alternative Energy Systems Corp www.aaenergysystems.com 940-634-1912

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