Encore Energy Systems Completes LOI to Acquire H2One Hydrogen Injection Line of Products

  Encore Energy Systems (PINKSHEETS: ENCS) announced
that it has completed a Letter of Intent to acquire the exclusive
distribution rights to the proprietary H2One line of Hydrogen Injection
Products.

The innovative H2One Product line of high-performance, on-board hydrogen electrolyser splits distilled water into hydrogen and oxygen, then injects those gases directly into the air intake of the engine. Current products, that will be available for immediate shipping upon finalization of the LOI, target the transport and commercial trucking industries.

H2One Benefits

--  An increase in the efficiency of the combustion resulting in increased
    fuel mileage
--  Reduced emissions of HC, PM, CO
--  Shorter burn duration results in lower NOx
--  Increased horsepower and torque
--  Increased Engine Life - less wear and tear
--  No hydrogen is ever stored onboard
--  Gases are not produced unless the engine is running
--  Use will not void any engine warranty
--  Operates in any weather condition
--  Only maintenance required is the addition of distilled water every 60-
    70 hours of engine operation
    

Investors will receive further updates regarding the finalization of the Letter of Intent and product availability.

About Encore Energy

Encore specializes in alternative energy and environmentally friendly power production. It is an international aggregator of biofuel reactor technology, biofuel distribution, and biofuel production facilities. The company supplies biofuel-based stationary power generators and an array of solar technologies and products.

The Company owns the patents for the use of grey-water and domestic water in geothermal heat exchanger systems. The Company licenses its patented technology to other energy-related businesses. Web Site: http://www.encoreenergyinc.com.

Safe-Harbor Statement

This press release contains statements (such as projections regarding future performance) that are forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those projected as a result of certain risks and uncertainties. The company's website and filings contain various RISK FACTORS (and are incorporated herein by reference) and should be read before any investment decision.

Investor Relations: Contact: Encore Energy Systems, Inc. [e-mail] 1.662.253.5766