AEHI Reaches Key Milestones in Nuclear Power Goals AEHI Reports Progress Toward Local Approval of Nuclear Power Plant and Strong International Interest in Green World Water(TM) Nuclear Desalinization Reactor

BOISE, IDAHO - August 19, 2010 - Alternate Energy Holdings, Inc. (OTCQB:AEHI) (www.aehipower.com), an independent developer of large-scale nuclear and green energy projects including nuclear power plants and nuclear desalination reactors, today provided an update on its key projects including growing international interest in its Green World Water™(GWW) (www.greenworld-h2o.com) nuclear desalinization reactors. GWW systems are designed to satisfy U.S. safety design standards and intended initially for non-U.S. buyers around the world with a need for large volumes of affordable potable water and electricity. AEHI has also made tremendous strides towards receiving final local approval in Payette, Idaho for its proposed nuclear power plant and is currently working on a build-out of an Energy Neutral™ (www.energyneutralinc.com) subdivision, with the goal of building homes that produce more power than they consume.

AEHI CEO, Don Gillispie stated, “We have reached a number of key milestones in just the last six months, which put us on track of attaining our corporate goals of building a nuclear power plant in Idaho and selling what we believe will be the world’s first commercially available nuclear desalination system.”

• In May this year, Payette County Commissioners approved a key change to the county's comprehensive plan, which allows for an industrial complex on a 5,000 acre parcel under the precondition that the industrial use involve a nuclear power plant.
• In July, AEHI filed for final rezone approval and AEHI is confident the approval will come before the end of the year.
• Application preparations are also underway for the Nuclear Regulatory Commission in advance of the local approval process in Payette County Idaho.
• Due to rapid progress and strong local support, AEHI dropped a secondary backup site in Elmore County, Idaho, and instead is focusing resources and efforts exclusively in Payette County, where AEHI has located both primary and secondary sites.
• AEHI subsidiary Green World Water™ announced the signing of a Memorandum of Understanding (MOU) with Tubestar Oil and Gas, on what will be the world’s first commercially available and competitively priced nuclear desalination reactor. The GWW system can desalt large volumes of water, while producing electricity simultaneously.
• AEHI expects several more signed GWW MOUs in the coming months and is confident one or more of these MOUs will progress to final contracts before year end.
• AEHI’s build-out partner on the GWW desalination system is China National Nuclear Corporation (CNNC), which is the largest state-owned enterprise in China, with the experience and resources to rapidly bring these desalination reactors to market, providing AEHI with an unparalleled first-mover advantage.
• In mid-June, AEHI signed an MOU with Hyperion Power Generation to license, build and market Hyperion's refrigerator-sized modular nuclear reactors on a world-wide basis. The reactor is expected to create international opportunities, while expanding the reach of Green World Water™.
• In March, AEHI subsidiary, Energy Neutral™ finished building its first home that produces more power than it uses. Until recently, the home operated as a model home and has now been placed on the market. Energy Neutral™ is now moving forward on a subdivision in west Boise, Idaho.

Mr. Gillispie concluded, “We remain extremely excited about the outlook for AEHI. Worldwide sentiment toward nuclear power has changed. Nuclear has proven itself as the safest, most reliable, cost effective, and scalable form of clean baseload power generation. Nuclear power has also been proven as an unbeatable method of economic development in the energy sector – an industry that can produce thousands of jobs with very high levels of pay. As a result of these factors, we are very optimistic AEHI will achieve measurable financial milestones this year and we look forward to keeping our investors apprised of developments as the year progresses.”http://www.alternateenergyholdings.com/