June 26, 2008

Encore Energy Systems Announces Stockholder Cash Dividend and Royalty Distribution Plan

OXFORD, Miss., June 26 /PRNewswire-FirstCall/ -- Encore Energy Systems (Pink Sheets: ENCS) announced today its plan to pay cash dividends to stockholders as part of its efforts to provide equity growth.

As previously announced, the Company executed various royalty-based License Agreements for its geothermal technology. All revenue received from these Agreements will be direct-deposited, in full, to a Shareholder Escrow Account. The cash will be distributed to all record-date stockholders on an annual basis, pro rata.

Prospective stockholders who purchase shares after the record-date are not eligible for this dividend. They will qualify, alongside all stockholders, for dividends arising from future technology license agreements. The record-date, with all details of the cash-dividend plan and royalty schedule details will be released soon.

As part of it new growth initiatives, the company expects to announce significant additions to its technologies, products and industry initiatives. These include: new technology and product solutions in the areas of power co-generation, new corporate awareness and image branding, and new alliances and marketing to tap the growing power generation and displacement industry. These new strategies allow the company to access high-margin, high-margin projects in vertical design and installation of power generation and conservation installations.

All new technologies will be similarly treated with stockholder cash-dividend escrow plans. Revenue generated from other sources will be allocated when practicable for stockholder distribution.

The Company is presently in late-stage negotiations on new and broader license agreements and anticipates releasing details soon.

The Company's strategy is to provide stockholders a positive equity growth path removed from the influences of stock market volatility and operational performance. The Company believes the direct distribution of royalty and technology proceeds to stockholders congruent with this goal.

About Encore Energy

Encore Energy provides energy-saving solutions to residential and commercial customers through design and installation of climate control systems using the company's proprietary products and designs.

Encore Energy owns the patents for the use of grey-water, and domestic water in heat exchanger systems. They also provide all forms of conventional geothermal heat exchange systems. See video at http://www.encoreenergyinc.com/.

Safe-Harbor Statement

This press release contains statements (such as projections regarding future performance) that are forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those projected as a result of certain risks and uncertainties. The company's web-site version of this press release contains various RISK FACTORS (and are incorporated herein by reference) and should be read before any investment decision.

    Contact: Encore Energy Systems, Inc.             Investor Relations             1-888-234-0963             [email protected]  

Encore Energy Systems

CONTACT: Investor Relations of Encore Energy Systems, Inc.,1-888-234-0963, [email protected]

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