Alternative Energy Sources, Inc. announces
it will cease all operations

On June 23, 2008 the Board of Directors (the "Board") of Alternative Energy Sources, Inc. (the "Company"), due to an inability to successfully raise funds for its ethanol plant construction or expand its ethanol management consulting business, initiated a plan to cease business operations. As a result of this plan, the Company expects to record total pre-tax one time non-cash charges totaling approximately $3.1 million in connection with winding down its operations, the largest charge being approximately $2.5 million relating to the asset impairment charge associated with the Company's proposed Boone County, Iowa plant location. The Company is also subject to a lease for its headquarters with 78 months remaining on its term and employment agreements that stipulate payments upon termination without cause. Costs associated with future obligations under this lease and the employment agreements are not determinable at this point.

The Board determined to furlough, effective June 30, 2008, all employees and the following officers: Lee L. Blank, John J. Holland and John A.Ward.

The Board also determined to elect, effective July 1, 2008, Mark A. Beemer, who in addition to his current roles as Chairman and Chief Executive Officer will also serve as Chief Financial Officer. Effective July 1, 2008, Mr. Beemer's compensation will be adjusted to an hourly basis at his current annual rate of pay. Payment of the compensation will be subject to the company's ability to meet its
obligation to Mr. Beemer. Additional information relating to Mr. Beemer's age, experience, compensation, family relationships and related party transactions can be found in the Company's Annual Report on Form 10-KSB for the period ended December 31, 2007 filed with the SEC on March 31, 2008.

Following the board meeting, on June 23, 2008, the following directors voluntarily resigned from the Board and from all committees of the Board: Lee L. Blank, W. Gordon Snyder, A. Michael Espy and John D. McNamara.