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AVEC RECIEVES APPROVAL FOR DISTRIBUTION AND MARKETING OFFICE IN DUBAI

Technology presentations scheduled for prospective Licensees.

February 20, 2007

Portland, Oregon, February 20, 2007 — (OTC Bulletin Board: AXVC), Axial Vector Engine Corporation pleased to announce today the opening of a Branch Office in Dubai, United Arab Emirates.

Presentations throughout the MENA (Middle East and North Africa) region have been scheduled to coincide with the introduction of AVEC's new line of small and "ultra efficient" electric motors initially focusing on energy saving applications in compressor motors for refrigerators, freezers and air conditioning.

The recently patented Axial Flux electric motors and electric generators for large and small applications bring unique and substantial energy saving capability to the electric motor and generator markets when compared to the high inrush current during startup of typical radial flux devices, which have long dominated these markets. With axial flux instead of radial flux, there is higher torque output, greater energy efficient, and a smaller size system per unit horsepower or torque that add up to make our electric motors more practical and cheaper to operate in a wide variety of domestic and industrial applications. This opens a huge electric motor market for Axial Vector Engine Corp.

The new Engine Control Unit (ECU) is also ready. It will control the fuel injector drivers according to engine needs and optimize the engine's performance and fuel efficiency. This represents considerable improvement over set point controllers. Since no off-the-shelf ECU was available to meet our needs, the entire unit software was designed in-house. The software driven ECU controls a number of fuel injector activities such as pulse per unit of time, duration of injection, volume of fuel.

Dr. Raymond Brouzes, AVEC President and CEO stated "The timing of our Dubai Office approval works out nicely with the rapidly approaching completion of the trial runs of our engine, generators and GENSETS and the production of sale specifications for our GENSETS and the beginning of our refrigerator and air conditioning compressor motors. Our Dubai Office will provide an Ideal spring board to Introduce and extend our licensing program for the manufacturing and/or distribution of the AVEC unique families of technologies from our newly approved office in this tax free zone. It will also be an Ideal location to present our unique products to prospective users and investors in an area of the world receptive to development and investment in profitable, environmentally sound and energy optimized products."

For Further Information Please Contact:

DR. RAYMOND BROUZES, PRESIDENT & CEO
One World Trade Center
121 SW Salmon Street, Ste 1100
Portland, OR 97204
503-471-1348
www.AXIALVECTORENGINE.com
info@AXIALVECTORENGINE.com

Redwood Consultants, LLC
415 884-0348

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