Source: Encore Clean Energy, Inc.

Encore Signs 'MPG' Development and License Agreement With ISE Corporation for Hybrid Vehicle Application

LOS ANGELES, Sept. 15, 2005 (PRIMEZONE) -- Encore Clean Energy, Inc. (OTCBB:ECLN) ("Encore") is pleased to announce that it has entered into a Development and License Agreement with ISE Corporation (, to design and build prototype units of Encore's patent pending Magnetic Piston Generator ("MPG") technology for use in heavy duty motor vehicles weighing over 8,500 pounds.

ISE Corporation, based in Poway, California, is a leading supplier of hybrid drive systems and components for heavy duty vehicles such as buses, trucks, trams, airport equipment and military vehicles. ISE is a leader in electric, hybrid-electric, and fuel cell technologies, and the preferred U.S. distributor for Siemens ELFA electric and hybrid-electric drive components.

David Mazaika, President and CEO of ISE, comments, "ISE is excited to be partnering with Encore in the development of the MPG technology. The MPG will essentially take waste heat from the engine in a hybrid drive system and convert it to useful electric energy. We believe co-generative processes such as the MPG have the potential to substantially improve the fuel economy of today's hybrid vehicles."

Encore CEO Dan Hunter commented, "We are extremely pleased to have a technology partner of the caliber of ISE to develop the MPG for the fast-growing hybrid vehicle market. Harnessing radiator and tailpipe exhaust heat of a gasoline or diesel engine, or the exhaust heat of a hydrogen fuel-cell, may be one of the most cost-effective ways by which car and truck makers worldwide can potentially increase vehicle driving range, lower engine emissions and reduce consumption of, and demand for, imported oil and gasoline. Harnessing such waste heat is the first step in our plan to develop gasoline, diesel and/or hydrogen combustion versions of the MPG to directly generate electricity more efficiently than conventional diesel and internal combustion engine/generator systems."

In consideration of Encore funding and ISE developing the MPG for heavy duty hybrid vehicle applications, ISE will receive an exclusive territorial license to make, use and sell MPG's in the U.S. and Canada in the field of use of Heavy Duty Motor Vehicles. Encore will retain ownership of the exclusive right to sub-license the MPG in all other territories around the world and in all other fields of use, including but not limited to next-generation motor vehicles (hybrid passenger cars and light trucks) and high-efficiency distributed energy-generating facilities (converting the "free fuel" of solar thermal, geothermal, power plant turbine exhaust, combustion engine exhaust and industrial waste heat energies into entirely new sources of clean and usable power).

The initial phase of ISE's development effort is estimated to cost over $260,000 and result in ISE building and testing a compressed air-driven prototype MPG System that produces electricity. Encore will pay for this effort in two installments of $100,000, each payable within the next 60 and 120 days respectively and the final installment for the first phase effort within the next 180 days. If the parties agree that the first phase has been successful, then ISE will proceed with the second phase of the development, which is expected to result in ISE building and testing a closed-loop, waste heat-driven prototype MPG System that produces electricity for hybrid vehicle applications. Encore will also fund this second phase, currently estimated to require an investment of over $600,000.

About Encore Clean Energy Inc.

Encore Clean Energy intends to leverage ownership of its revolutionary low-cost, high-efficiency clean energy technologies to form valuable partnerships with local industrial leaders best positioned to market, sell and profit from the social, economic, environmental and political benefits of its low-cost, high-value, in-demand clean energy-generating products. Encore Clean Energy is currently focusing its corporate efforts on product development of potential breakthrough clean energy technologies which the Company has been researching, developing, prototyping, testing and validating.

This release contains forward-looking statements that are based on the beliefs of Encore's management and reflect Encore's current expectations as contemplated under section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities and Exchange Act of 1934, as amended. When used in this release, the words "estimate," "project," "believe," "anticipate," "intend," "expect," "plan," "predict," "may," "should," "will," "can," the negative of these words, or such other variations thereon, or comparable terminology, are all intended to identify forward-looking statements. Such statements reflect the current views of Encore with respect to future events based on currently available information and are subject to numerous assumptions, risks and uncertainties, including, but not limited to, risks and uncertainties pertaining to development of Encore's technologies, products and services, the actual cost and performance of such technologies and products, the markets for such products and services, the timing and level of customer orders, competitive products and service, changes in economic conditions and other risks, uncertainties and factors, which may cause the actual results, performance, or achievement expressed or implied by such forward looking statements to differ materially from the forward looking statements. Certain statements by ISE contained in this press release are forward-looking in nature. ISE's business and operations are subject to a variety of risks, uncertainties and other factors. Consequently, actual results may materially differ from those projected and/or stated by any forward-looking statements. ISE makes no commitment to revise or update any forward-looking statements in order to reflect events or circumstances after the date any such statement is made.