COLUMBUS, Ohio, and BALTIMORE, MD, Jan. 4, 2001 — American Electric Power (NYSE: AEP) and Environmental Elements Corporation (AMEX: EEC) today announced that they have executed an agreement designed to provide additional support for the commercialization of EEC�s Ammonia on Demand (AOD) technology in the power generation market.

AEP recently announced that it will employ the AOD technology to achieve federally mandated reductions in nitrogen oxide (NOx) emissions at the company�s Gen. James M. Gavin power plant at Cheshire, Ohio. The Gavin Plant consists of two 1300-megawatt coal-fired generating units and is the largest generating station in Ohio.

The AOD system enables the immediate conversion of non-toxic urea, which is a solid chemical commonly used in fertilizer, into ammonia. The ammonia is added to the power plant�s exhaust gases, which are then channeled through a catalyst that breaks down the gases into elemental nitrogen and water. The system eliminates the need to store large quantities of ammonia at the plant site.

The mutually beneficial agreement establishes EEC as the exclusive supplier of urea-to-ammonia systems for AEP�s generating fleet should the company decide to proceed with additional installations of the technology.

The agreement grants AEP an exclusive sub-license to market and sell urea-to-ammonia systems in competitive markets for turnkey engineering, procurement and construction projects, and in the build, own, operate or maintain marketplace. The licensing agreement applies throughout North America, including Mexico.

AEP will also serve as EEC�s preferred supplier of engineering, design, project management, and construction management services for third-party turnkey air emission control projects.

“The nation�s power suppliers are facing challenging decisions as they search for safe and cost-effective ways to meet their emission control obligations,” said Martin L. Mearhoff, AEP�s vice president of advanced technology and renewable energy. “EEC�s AOD system can help the nation�s power generation industry eliminate significant risks inherent with using anhydrous ammonia with selective catalytic NOx reduction technology. After evaluating EEC�s system at length, we�ve concluded that AOD will become the preferred technology for producing ammonia on demand, as opposed to storing large quantities of ammonia on site.”

AEP�s non-regulated professional services subsidiary, AEP Pro ServSM, Inc., will take the lead in scaling the AOD technology to a wide range of generating unit sizes, up to and including 1300 megawatts. “We have tremendous confidence in the ability of AEP Pro Serv and EEC to scale the system to meet the needs of the largest coal-fired plants in the world,” said Mearhoff. AEP Pro Serv provides professional services in all areas of generation, transmission, distribution and industrial projects, including siting; environmental licensing, permitting and remediation; engineering; design; construction; operation and maintenance.

According to John L. Sams, president of EEC, “The new alliance will be highly beneficial to both companies. The impact extends well beyond the validation of EEC�s urea-to-ammonia technology, as the relationship expands the potential for wide deployment of EEC�s AOD system via the AEP Pro Serv sales force. Further, we will be providing a range of other services to AEP over the longer term as a preferred supplier.” The agreement also calls for EEC to serve as AEP�s preferred supplier of equipment, parts and services for electrostatic precipitator and fabric filter technology.

About AEP
American Electric Power is a multinational energy company based in Columbus, Ohio. AEP owns and operates more than 38,000 megawatts of generating capacity, making it one of America�s largest generators of electricity. The company is also a leading wholesale energy marketer and trader, ranking second in the U.S. in electricity volume. AEP provides retail electricity to more than 9 million customers worldwide and has more than $35 billion in assets, primarily in the U.S. with holdings in select international markets. Wholly owned subsidiaries are involved in power engineering and construction services, energy management and telecommunications.

About Environmental Elements
Environmental Elements Corporation, an air pollution control systems provider for over fifty years, designs equipment and supplies systems and services which enable a broad range of customers in the power generation, pulp and paper, waste-to-energy, rock products, metals and petrochemical industries worldwide to operate their facilities in compliance with particulate and gaseous emissions standards. The company also supplies a complete range of parts and services for its own systems and for systems originally supplied by others.