USA - Axial Vector announces the formation of United States Wind Power Industry Joint Venture

Axial Vector Energy Corporation announced that it has entered into a Joint Venture Agreement with Constellation Capital Management, LLC ("Constellation") of Novato, Calif. Under the terms of the parties' agreement, the Joint Venture, which will be 80% owned by AVEC, will have the exclusive right to market AVEC's proprietary generating equipment to replace existing generators in the United States wind power industry. Retrofitting existing U.S. wind power projects with AVEC generators will result in substantial increases in power generation, revenues and profits for each retrofit project.

Axial Vector's unique and proprietary coreless axial flux permanent magnet generators enjoy significant efficiency advantages when compared with generators now in use in the U.S. wind power industry. The AVEC/Constellation Joint Venture intends to introduce the AVEC generators as retrofits for existing U.S. wind projects. Retrofit projects can expect this highly cost effective modification to result in increased power generation and revenues, leading therefore to dramatically increased profitability. The Joint Venture is in the process of identifying wind projects that can benefit from the AVEC generator's ability to generate power in low wind conditions.

The Joint Venture intends to offer the AVEC generator to existing wind projects as an investment in the wind power project, rather than as a direct equipment sale. The AVEC generator's unique ability to generate power in low wind conditions will be particularly important to the viability of wind power projects in the current environment of decreasing natural gas prices. Since many U.S. wind power projects receive energy payments that are tied to the price of natural gas and other fossil fuels, generating more power under low wind conditions will result in increased revenues for AVEC retrofitted wind power facilities due to higher generating rates and despite lower per kWh payments from the host utility.

The AVEC 100 kW generator will serve as the Joint Venture's initial retrofit generator. The AVEC 100 kW generator is rated for 100 kW of continuous output, 120 kW of peak output and has a 98% operating efficiency.

AVEC and Constellation have identified several existing California wind projects that would greatly benefit from a retrofit using the AVEC 100 kW generator. The Joint Venture intends to propose that AVEC generators and related equipment be installed as a replacement for the project's existing generating equipment. The Joint Venture will offer to engineer and install the retrofit as the Joint Venture's investment in the power project.

Constellation Capital Advisor and Consultant Dr. Faramarz Yazdani, a senior power industry expert, stated, "The retrofit is a cost effective approach that enables each turbine to generate substantially more power without adding more towers or turbines. This in turn translates into substantial additional revenues and profits for the existing wind power generators. California has approximately 1,500 megawatts of installed wind generating capacity. Unfortunately, these California wind projects have only been able to achieve annual operating rates of approximately 25%. Every 1% California systemwide improvement in capacity factor would result in an additional generation of at least 135,000 mWh, adding close to $10.0 million annually to California wind industry revenues at today's power market prices. Increasing the capacity factor for the existing projects from 25% to 35% would add another $100 million of annual revenues in California alone."

Constellation Capital Senior Advisor William Jeffrey Gilliam stated, "According to California Energy Commission Wind Performance Reports, California wind power generators are particularly inefficient at producing power during the four month period of November thru February. At the Northern California Altamont Pass generation site (the largest in California), combined output in the month of January is consistently in the range of 5% of capacity.

Existing wind power generating projects have simply been unable to generate power under the kinds of wind conditions that prevail most of the year. Installing an AVEC retrofit generator will provide the flexibility of efficiently generating power in both low and high wind conditions. Needless to say, more efficient operation in low wind conditions can and will result in significant increases in wind power sales at retrofitted facilities. Dr. Faramarz Yazdani and I have a long history of successfully working together in the California independent power industry. Dr. Yazdani and I Iook forward to working with the Joint Venture in developing relationships with existing California and U.S. wind power projects that can benefit from an AVEC retrofit. We believe that the near term retrofit opportunities are significant in number as well as in the overall improvement that each project can expect to achieve from an AVEC generator solution."

About Axial Vector Energy Corporation:
Axial Vector Energy Corporation (AVEC) is a global solutions provider that owns, develops and licenses revolutionary internal combustion engine and electric power generator technologies that have unlimited potential in military, industrial and commercial applications. AVEC and its partners are positioned to become unrivalled leaders in international engine and energy markets with technologies that produce more efficient, cost effective, environmentally sensitive and versatile solutions for use in a wide variety of important applications around the world.