Alternative Energy Sources Announces $10 Million in Tax Credits, $23 Million in Tax-Exempt Bonds


KANSAS CITY, Mo., May 17, 2007 (PRIME NEWSWIRE) -- Kansas City-based Alternative Energy Sources Inc. (OTCBB:AENS) announced that this morning the Iowa Department of Economic Development approved the award of $10 million in investment tax credits to AENS.

The company also announced the issuance of $23 million in tax-exempt bonds. The Iowa Finance Authority had provided a letter of inducement for the bonds earlier this year. These bonds, along with the tax credits, will advance the company's plans to build its proposed 110-million-gallon ethanol plant near Ogden, Iowa.

The latest award includes sales tax exemptions for building materials. Tax benefits are through the High Quality Job Creation program because the plant is expected to create 50 jobs. IDED also approved Boone County's $7.5 million tax abatement.

"Today, Iowa's renewable energy economy grows even stronger," said Mike Tramontina, director of the Iowa Department of Economic Development. "This award for Alternative Energy Sources will help to create high-quality jobs for Iowa workers and further the state's reputation as the renewable energy capital of the world. We are proud to welcome Alternative Energy Sources to Iowa."

In January AENS announced that the Iowa Department of Transportation had approved a total award of $239,000, including a grant of $144,500 and a loan of $94,500, both to be used for Union Pacific railroad infrastructure for the Ogden plant.

"This has been a tremendous collaborative effort with Ogden, Boone County and the state of Iowa, including the IDED and IFA," noted Mark Beemer, AENS's CEO. "We're confident about the long-term economic benefits this partnership will create."

AENS (www.aensi.com) is developing "greenfield" sites, including constructing, owning and operating fuel-grade ethanol plants.

The Alternative Energy Sources Inc. logo is available at http://www.primezone.com/newsroom/prs/?pkgid=2961

Forward-Looking Statements: This release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, and Section 21E of the Securities Exchange Act of 1934, These statements are based on management's expectations, estimates, projections and assumptions. You can identify these statements by the fact that they do not relate strictly to historic or current facts. They use words such as "will," "anticipate," "estimate," "expect," "project," "intend," "plan," "believe," "target," "forecast" and similar words in connection with any discussion of future operating or financial performance. 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 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 and other financial, operational and legal risks and uncertainties detailed from time to time in the Company's SEC filings. Any forward-looking statements speak only as of the date of this release. We assume no obligation to update any forward-looking statements to reflect any event or circumstance that may arise after the release date.


            

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