All is not lost re debt of AAE - see following email exchange...

All is not lost re debt of AAE - see following email exchange with Peter Anderton today (7/1/2008)

Dear Mr Anderton,

Concerning the sale of 100 percent of the shares of USCB, could you clarify whether the purchaser has also taken over the debt for construction of the Beatrice Biodisel assets up to date of sale of the shares.

Reply :-

Michael,

The purchaser assumes all debt in Beatrice Biodiesel LLC, the 100% owned subsidiary of USCB and the owner of the Beatrice Biodiesel Project. USCB does not directly have any debt – all debt lies in the subsidiary.

Regards

Peter Anderton

Chief Executive Officer

(end of emails)

My personal opinion is that the reduction of debt referred to in the announcement refers to other AAE debt - not Beatrice Biodiesel debt. Thus the proceeds of the sale of the Beatrice shares should not be seen as a loss.

Gemmy