PORTLAND, Oregon, September 25 /PRNewswire/ --

Axial Vector Engine Corporation (OTC Bulletin Board: AXVC) today
announced the signing of an MOU with Eastcom Ltd of London, United Kingdom
for the production of AVEC 195 horsepower 605 torque gasoline engines for
various civilian applications.

The agreement calls for a first run of 200 custom built engines priced at
$25,000 USD per engine. These engines have been pre sold by Eastcom and
will be installed in private vehicles modified by DIGI TEC of Dubai United
Arab Emirates. Saloon cars, sports cars and even four wheel drive vehicles of
all makes are among the units agreed to be modified.

Samuel Higgins, CEO of AVEC had the following to say, "This deal brings
together the very essence of AVEC, our allegiance is not to any particular
brand of automobile, we pledge our allegiance to the customer. The fact that
our engine is small enough and compatible enough to fit in between the rear
two tires of any vehicle sets us apart from anything the world has ever seen
in terms of vehicle modification. We are extremely confident that this
efficiency will soon be integrated into the watercraft industry.

AVEC will receive a 20% gross sales royalty payable 50% in advance and
50% as each engine is produced by Eastcom. Suppliers have been identified and
purchase orders released. Final assembly will be Dubai, United Arab Emirates
providing the first "home grown" automotive business in the Emirate.

Phase two of the agreement calls for expansion of production to
2,000 engines and will be marketed to high net worth individuals looking for
an extra edge in performance of their vehicles in the Gulf Cooperative
Council Countries, which includes Saudi Arabia, Bahrain and Qatar, Oman
Kuwait and the United Arab Emirates.

The two main uses for these engines are in the automotive and watercraft
arenas. Exclusive top of the end performance is demanded by customers around
the GCC and Eastcom's goal is to meet this demand with the world's most
efficient engine.

Commenting at the signing of the deal, Arash Masom, Managing Director of
Emirates International Capital Advisory, "We are proud to be involved in the
final step of the commercialization process of the AVEC engines. Our client,
Eastcom Ltd was shown the technology upon its arrival to Dubai and it has now
inked the first deal with AVEC. This deal finally brings the superior power
and efficient fuel consumption technologies of AVEC engine into everyday use,
with oil prices at current levels, this product has arrived in a very timely
manner."

About Axial Vector(TM) Engine Corporation, Axial Vector(TM) Engine
Corporation is a publicly traded company (OTC Bulletin Board: AXVC) that
owns, develops and licenses proprietary intellectual property regarding
unique internal combustion engine technologies. We are applying these
technologies to develop an exciting, new, smaller and lighter internal
combustion engine that produces significantly greater horsepower and three
times more torque on less fuel than conventional engines of similar size.

Forward-Looking Statements, This press release may be deemed to contain
forward-looking information. Any forward-looking statements are made pursuant
to the safe harbor provisions of the Private Securities Litigation Reform Act
of 1995. Forward-looking statements, including statements as to industry
trends, future economic performance, anticipated profitability, anticipated
revenues and expenses, and products or service line growth, may be
significantly and materially impacted by certain risks and uncertainties,
including, but not limited to, failure to meet operating objectives or to
execute the operating plan, completion, and other economic factors.
Additional risks and uncertainties are described in the Company's public
filings with the Securities and Exchange Commission.

Contact: Samuel Higgins
             Axial Vector Engine Corporation
             One World Trade Center
             121 SW Salmon Street, Suite 1100
             Portland, OR 97204 USA
             +1-503-471-1348
             Samuel.Higgins@AxialVectorEngine.com
             http://www.axialvectorengine.com



Web site: http://www.axialvectorengine.com