AFPW AlumiFuel Power Corporation (CE)

Early production stage hydrogen generation company AlumiFuel Power Corporation (OTCBB: AFPW) (the "Company"), announced today that it has entered into a Memorandum of Understanding with ARG Vermogensverwaltung AG ("ARG"), a German wealth management company, for facilitating a financing of approximately $7.5 million through the sale of common stock of its majority-owned subsidiary, AlumiFuel Power International, Inc. ("AlumiFuel International"). AlumiFuel International recently completed its listing on the Deutsche Börse-Frankfurt Stock Exchange trading under the symbol ("9AP") in the Open Market segment. AlumiFuel International's shares are not convertible into AFPW shares on any U.S. exchange.

AlumiFuel International is operated by the same management team as the Company's wholly-owned operating subsidiary, AlumiFuel Power, Inc. ("API"), based in Philadelphia, Pennsylvania, and is focused on marketing the Company's hydrogen generation products to countries outside of North America.

"This Memorandum of Understanding is the first step in our goal to broaden our reach outside of North America and provide access to capital for expansion of our product development and marketing activities," stated Company Chief Executive, Henry Fong. "While we must still conduct further due diligence, negotiate and execute definitive agreements and complete other customary procedures for the transaction, we believe this can be accomplished in a relatively short time-frame for a deal of this nature. The creation of AlumiFuel International and this funding, if successfully completed, will allow us to expand our reach internationally and raise significant capital to fund our operations without issuing new AFPW shares."

About AlumiFuel Power, Inc. API (www.alumifuelpowerinc.com) is an early production stage alternative energy company that generates hydrogen gas and superheated steam through the chemical reaction of aluminum, water, and proprietary additives. This technology is ideally suited for multiple niche applications requiring on-site, on-demand fuel sources, serving National Security and commercial customers. API's hydrogen feeds fuel cells for portable and back-up power, fills inflatable devices such as weather balloons, and can replace costly, hard-to-handle and high pressure K-Cylinders. Its hydrogen/heat output is also being designed and developed to drive turbine-based underwater propulsion systems and auxiliary power systems, and as the fuel for Flameless Ration Heaters. API has significant differentiators in performance, adaptability, safety and cost-effectiveness in its target market applications, with no external power required and no toxic chemicals or by-products. For more news and information on API, please visit www.irgnews.com/coi/AFPW.

About AlumiFuel Power International, Inc. AlumiFuel International holds a license agreement with the Company and API to market API's hydrogen generation products globally to countries outside of North America.

About AlumiFuel Power Corporation AlumiFuel Power Corporation operates through its wholly owned subsidiary, AlumiFuel Power, Inc., a Philadelphia-based early production stage alternative energy company that generates hydrogen gas and steam for multiple niche applications requiring on-site, on-demand fuel sources. The Company also operates through its majority owned subsidiary, AlumiFuel Power International, Inc., to market its products globally outside of North America. The Company owns 40,000,000 shares of AlumiFuel International common stock.

Safe Harbor for Forward-looking Statements This news release may contain forward-looking statements that are made pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. While these statements are made to convey to the public the company's progress, business opportunities and growth prospects, they are based on management's current beliefs and assumptions as to future events. However, since the company's operations and business prospects are always subject to risk and uncertainties, the forward-looking events and circumstances discussed in this news release might not occur, and actual results could differ materially from those described, anticipated or implied. For a more complete discussion of such risks and uncertainties, please refer to the company's filings with the Securities and Exchange Commission.

CONTACTS: Investor Relations: AlumiFuel Power Corporation Thomas B. Olson Corporate Secretary 303-796-8940 Public Relations: The Investor Relations Group (IRG) Mike Graff 212-825-3210 Technical Information & Marketing: API Laboratories 3711 Market Street, Suite 950 Philadelphia, PA 19104 215-921-9203 Email Contact