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Alliance Recovery Corp. (ARVY.OB) “Waste to Energy” Showcase Funded

Alliance Recovery Corporation (the “Company”) (OTCBB:ARVY) is pleased to announce that it has executed a $20,000,000 equity line financing agreement with Dutchess Private Equities Fund Ltd. of Boston, Massachusetts. The proceeds of this financing agreement will be used to construct the company’s energy alternatives showcase “waste to energy” processing facility. When completed, this initial “waste to energy” processing facility will be the first of several similar installations that will be located in, or immediately adjacent to, large metropolitan centers in the U.S. and Europe. The utilization of alternative fuels to make “clean energy” will contribute to the reduction of America’s dependence on foreign oil.

Once construction is completed, the Alliance “waste to energy” processing showcase will be a significant energy alternatives achievement that dovetails with US initiatives to reduce dependence on foreign oil sources. The ability to utilize a thermal/chemical reaction to reduce rubber to a fuel oil for use in conventional reciprocating engines driving alternators to make electricity is also an effective method for dealing with waste rubber and the challenging environmental hazardous accumulations of scrap tires that continue to be stockpiled, illegally dumped and/or simply burned. The additional Alliance process focus is the recovery of value-added residuals produced contemporaneously in the rubber to oil conversion process.

Alliance’s systems integration of existing chemical processing and thermal technologies will allow the showcase to process any form of rubber waste, including whole scrap tires, without any form of pre-treatment, shredding or grinding. The system will operate as a single pass process. The process conditions will ensure that the residual carbon black produced by the system is of a commercial grade and does not require any further processing or upgrading. The Alliance process is much more cost-effective than the attempted historical and not commercially successful approach of a pyrolysis oven, which produces a carbon rich pyrolysed product requiring further costly upgrading and refining.

Various state and federal agencies have suggested that, when determining the number of scrap tires that a community annually generates, the rule of thumb in the U.S. is one passenger tire equivalent for every man, women and child within the jurisdiction. As a point of final disposition, the Alliance “waste to energy” showcase will consume an amount of waste rubber that is equivalent to approximately 5,000,000 passenger tire equivalents annually, an activity that will positively impact the environment and conserve US energy resources.

The execution of the $20,000,000 financing agreement now positions the company to commence construction and specific tasks pertaining to the fabrication, site construction and start-up of the Alliance energy alternatives showcase waste to energy facility. In addition to contracting with Resource International of Ashland, Virginia to head up the overall project management team and the opening of a construction office in the summer of 2007, financing proceeds will allow initial construction and fabrication activities to commence at the selected site.

The initial responsibility of the project management team will be to review the pre-qualified development sites and to select up to 3 approved sites. Several development site locations are currently being considered. In the immediate weeks ahead, the company will continue to pre-qualify additional development sites to determine the optimum location for the showcase installation. All of these sites are either in, or immediately adjacent to, large metropolitan centers that generate huge volumes of waste rubber annually, thereby ensuring an adequate fuel source for Alliance electrical energy production.

Upon completion of construction, targeted marketing activities for the expansion of the Alliance “waste to energy” processing facilities will originate from the showcase installation. The showcase will also be configured as the company’s employee and management training and incubation center to support the U.S. expansion of similar Alliance “waste to energy” installations. The company’s future energy alternatives research and development efforts will also be housed at the showcase installation.

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