Axial Vector Updates Investment
Community. DUBAI, United Arab Emirates - February 23, 2009 - Axial Vector Energy Corporation ("AVEC") (AXVC.PK) (Frankfurt: BAE1) wishes to update the investment community with recent developments concerning its business. On Saturday, February 21st, the company received notice of cancellation of its Credit Agreement from its primary lender, Emirates International Capital Advisory. Repeated delays in delivering finished products as promised under its agreement with Adaptive Propulsion Systems were cited in the letter to Axial Vector Management. As a result, current plans and related expenses on listing the equity on a higher market have been temporarily postponed. The company has been negotiating throughout the weekend with perspective new investors who have already agreed to subscribe to parts of a new private placement, to allow continuation and completion of bringing the companies, engines, and generators to market. A bridge loan of US$110,000 has been received and transferred to the attorneys representing AVEC in its 4-year old litigation concerning Transporter, Inc. The company believes the case continues to be without merit and will now proceed to trial on the issues over the bankrupt transporter software purchase. A site visit to the Engine Tec Inc. testing facility was recently completed by AVEC company representatives. The workhorse engine with its newly designed piston system has been re-assembled and is creating power. All other GENSET component systems have now been finalized, including the 100kW generator, rectifier, inverter, and engine management system Mr. Sanjai Chhaunker, President of Axial Vector, stated, "While we are disappointed in the termination of our current credit agreement, we are pleased that other investors having conducted their own recent site visit are willing to support a re-capitalization of the company." Mr. Chhaunker further stated, "In the interest of fairness to all of our long-term shareholders, we are offering the chance to participate in the lowest cost financing in the company's history. The private placement is set at $0.10 cents per share for a total of $1,000,000. Qualified investors interested in participating in this lower cost equity may contact us at our investor email which is investment@axialvectorenergy.com. The company has sourced and negotiated additional projects which can be acquired immediately on completion of an interim finance agreement. While the company is confident that its engines and generators will meet or exceed its original projections in both sales and profitability, the board has authorized these additional projects capable of generating revenue in energy related industries immediately." For Further Information Please Contact: Axial Vector Engine Corporation
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