American Alternative Energy Systems Corp. Announces Waste to Energy Rights Acquisition

Proven Gasifier Technology Converts Most Difficult Waste Streams Into Local Renewable Energy

DENTON, TX–(EMWNews – August 25, 2008) – 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.