Alternative Energy Sources to Build Ethanol Plant in Kankakee, Ill.

KANSAS CITY, Missouri, August 21 /PRNewswire/ --

Kansas City-based Alternative Energy Sources Inc. (OTC Bulletin Board: AENS) today announced plans to build a 110-million-gallon ethanol plant 65 miles south of Chicago in Kankakee, Ill. This follows an announcement on Aug. 15 that the company plans to build its first ethanol plant in Central Iowa.

The Kankakee plant will be adjacent to the Canadian National/Illinois Central main railroad line, which links the Gulf states with Canada and intersects with east-west rail lines crossing the Midwest. The plant location also abuts Interstate 57, providing truck transport to Midwestern markets. "With both rail and truck shipping capabilities readily available, we will be able to serve national markets as well as neighboring communities in Northeastern Illinois and Northwestern Indiana," stated Mark Beemer, AENS president and CEO.

AENS has optioned the entire 248-acre Kankakee Industrial Park next to a newly permitted regional sanitary landfill. "In addition to giving us the large footprint needed for flexibility in plant design, this will allow us to acquire landfill methane gas for our operations at one-third the cost of natural gas on a Btu-adjusted basis," said Lee Blank, AENS executive vice president and chief operating officer. Blank and Beemer are both former executives of Archer Daniels Midland Co., the nation's No. 1 ethanol producer.

Construction will begin in six to nine months, with the plant scheduled to be in operation by fall 2008. Using more than 35 million bushels of corn annually, the plant will be a major consumer of corn grown in Kankakee and Iroquois Counties. Annual output is projected to be more than 100 million gallons of ethanol.

Once the plant goes into operation, it will provide jobs for 45 to 55 people with payroll between US$2.5 and US$3.5 million. The facility will have many components in common with those in the 110-million-gallon plant to be built in Boone County, Iowa. AENS also plans to build additional plants in the Midwest as well as the first cellulosic ethanol facility in the Eastern United States. All of the plants are projected to produce about 100 carloads of ethanol per week.

Beemer further noted U.S. automakers are producing more vehicles that run on a fuel mix of 85 percent ethanol and 15 percent gasoline, and that gas stations are continually gaining customers at their E-85 pumps.

Kankakee Mayor Donald E. Green noted that the area's infrastructure, location and experienced labor force were drivers for selecting Kankakee for the plant site. "Coming on the heels of the opening of the new US$40 million IKO roof-shingle plant and the US$17 million expansion of the Cognis chemical plant, Kankakee is demonstrating its ability to attract quality manufacturing concerns and sustainable growth," Green stated. "The city is becoming known as much for manufacturing as for its agriculture."

The Kankakee County Economic Development Association has been actively involved in efforts to bring ethanol production to our community, according to Joseph Franco, KCEDA chairman. "We are very pleased with Alternative Energy's decision to construct a plant in Kankakee," he said. "Their commitment to this community is an example of how collaboration among city and county government, economic-development resources and public-private partnerships results in successful county development."

About Alternative Energy Sources Inc.: Formed on June 12, 2006, Alternative Energy Sources is engaged in the development of "greenfield" sites, including constructing, owning and operating fuel-grade ethanol plants. Management team executives Mark Beemer, CEO, and Lee Blank, COO, have experience in agricultural processing, grain trading, railroad negotiations, logistical economics and acquisitions. Both have extensive management and leadership experience, including serving in executive management positions with agri-processing giant Archer Daniels Midland Co., the largest producer of ethanol. Through their cumulative 37-year careers, they have navigated businesses through three droughts, used extensive hedging and risk-management strategies, focused on efficient rail and barge transportation modes, and managed a host of grain elevators and agricultural processing facilities throughout the Midwest.

On Aug. 16 John J. Holland joined AENS as executive vice president and chief financial officer. Best known for his 24-year career with Butler Manufacturing Co., Holland led the company as chairman of the board and CEO from 2001-2004. He is a CPA and in his position as CFO will oversee financing and cash management, and raising capital and debt financing for the company's growth and planned construction of ethanol plants. For more information about AENS go to http://www.aensi.com .

Forward-Looking Statements: This news release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, including without limitation those statements regarding the company's ability to exploit ethanol development and production opportunities. These statements are expressed in good faith and based upon a reasonable basis when made, but there can be no assurance that these expectations will be achieved or accomplished. Although the forward-looking statements in this release reflect the good faith judgment of management, forward-looking statements are inherently subject to known and unknown risks and uncertainties that may cause actual results to be materially different from those discussed in these forward-looking statements including, but not limited to, our inability to secure or generate sufficient operating cash flow to adequately maintain our generating facilities and service our debt, commodity pricing, intense competition for undervalued generating assets, environmental risks and general economic conditions. Readers are urged not to place undue reliance on these forward-looking statements, which speak only as of the date of this release. We assume no obligation to update any forward-looking statements in order to reflect any event or circumstance that may arise after the date of this release, other than as may be required by applicable law or regulation.

Web site: http://www.aensi.com

Susan Pepperdine for Alternative Energy Sources Inc., +1-913-262-7414, susan@pepperdinepr.com