ALPE Alpha En corporation (CE)

-Alpine Aviation Inc., a subsidiary of Alpine Air Express Inc. (OTCBB: ALPE), and the third largest, by volume, regional cargo airline and transportation logistics company in the United States, with a fleet of 26 airplanes, along with its sister company, Alpine Air Chile, S.A., for the three months ending July 31, 2005, posted revenues of $5,369,327. This represents an increase in total revenue of approximately 8% over revenues of $4,965,758 during the same period in 2004. During the quarter ended July 31, 2005, the company had a net loss of $809,480, which includes a one-time write-down of aircraft and other assets and the forfeiture of certain deposits. For further information, please see Alpine Aviation's third quarter 10QSB available at the company's Web site, www.alpine-air.com/investors.htm/. The company receives the majority of its revenues from contracts with the U.S. Postal Service (USPS). For the three months ended July 31, 2005 and 2004, the revenues from contracts with the USPS represented 100% and 81% of total revenues, respectively. At July 31, 2005 and Oct. 31, 2004, accounts receivable from the USPS totaled $1,724,114 and $1,046,321, or 95% and 43%, respectively. The contracts currently in effect with USPS will expire between August and November 2006 for mainland U.S. operations and as early as Oct. 7, 2005, for Hawaii for certain routes and the remainder may be under new contracts for an additional three years. Since April 2004, the company has operated a new USPS contract to provide delivery of the mail between the Hawaiian Islands. This obligation placed more demand on company resources, including the increase in fuel costs, which has hindered the company's desire to expand its delivery services for additional routes in the mainland United States. As a result, on Jan. 31, 2005, the company notified the USPS of its intention to discontinue or terminate its service to the Hawaiian Islands under the terms of the current AMOT contract. The contract obligation to provide service may cease as early as Oct. 7, 2005. The company believes it has mitigated the recent losses through management plans, which have included re-bidding the USPS contract in Hawaii, the recovery of aircraft previously leased which can now be redeployed to reduce the company's costs of chartering aircraft to cover delivery routes in the mainland United States, the reduction of any further significant investment into Alpine Air Chile, and the company has entered into agreements to postpone the payments on the related party notes payable and the dividends on preferred stock. Gene Mallette, CEO of Alpine Air, commented: "We are excited to finally have the opportunity to return to profitability this quarter, given the potential of receiving notification of the Hawaiian contract award from the U.S. Postal Service." Founded in 1975, Alpine Air, a wholly owned subsidiary of Alpine Air Express Inc., provides competitively priced scheduled air cargo flights throughout the western and southwestern United States. The company has an established client base that includes various contract operations and the U.S. Postal Service. Alpine Air provides substantial "on time" performance and reliability, together with the flexibility to adapt quickly to the growing frequency and capacity requirements of its clients. This press release may contain forward-looking statements including the company's beliefs about its business prospects and future results of operations. These statements involve risks and uncertainties. Among the important additional factors that could cause actual results to differ materially from those forward-looking statements are risks associated with the overall economic environment, realization of USPS projected volumes, changes in anticipated earnings of the company and other factors detailed in the company's filings with the SEC. In addition, the factors underlying company forecasts are dynamic and subject to change and therefore those forecasts speak only as of the date they are given. The company does not undertake to update them; however, it may choose from time to time to update them and if it should do so, it will disseminate the updates to the investing public.