AIRBORNE TEAMS UP WITH PEABODY ENERGY IN
COMMERCIAL SCALE DEMONSTRATION OF THE AIRBORNE PROCESS™

(Terrace Park, Ohio - October 18th, 2004) Airborne Clean Energy is pleased to announce an agreement to team up with Peabody Energy (NYSE: BTU) the worlds largest private sector coal company in a commercial scale demonstration of Airborne's proprietary scrubber, regeneration and fertilizer production processes. The facility will be located at Peabody's Mustang Energy project, a proposed 300 megawatt coal-fueled power plant near Grants, New Mexico.

"In cooperation with Peabody Energy and Airborne's industry partners; HPD Veolia Water Systems North America and Icon Construction, the Mustang team is proposing to demonstrate a commercial scale, coal-fueled generating facility that will be amongst the cleanest coal-fueled power plants in the world" said John F. Kearney, Airborne's Chairman and CEO.

The $79 million Peabody / Airborne project, for which the US Department of Energy will provide a $19.7 million grant under the Clean Coal Power Initiative program will be a commercial scale demonstration of Airborne's patented technologies and processes. The Airborne Process™ will use sodium bicarbonate (baking soda) to capture pollutants from flu gas emissions and is expected to remove 99.5 percent of sulphur dioxide, 98 percent of nitrogen oxide and 90 percent of mercury. The sulfur and nitrogen co-products from the emission control process will be used to create a high-value granular fertilizer. The Mustang Energy facility will be the largest application of Airborne's patented process to date.

Personally announcing the $19.7 million grant from the Department of Energy to the Mustang Project. US Secretary of Energy, Spencer Abraham said that "the Peabody Mustang Clean Coal Project, including its unique Airborne Process™, advances President Bush's Clean Coal Power Initiative by enabling us to make maximum use of coal, our most abundant energy resource".

The Mustang Energy Project is under development by Peabody using lands and coal reserves owned by the company. The Mustang facility would be built near Peabody's Lee Ranch Coal Company operations and will be fueled by about 1 million tons of coal each year. The site for the Mustang facility was selected for its convenient and economical access to coal, land, rail and transmission services.

The permit for the mine to supply Mustang's coal has been submitted to the State of New Mexico and the project will require additional environmental review and permitting. The Mustang project will move forward immediately after the permitting process is completed as the majority of the plants electricity has been sold and a partner has been identified.

Airborne Clean Energy LLC of Terrace Park, Ohio, is commercializing an advanced multi-contaminant emission control process (the Airborne Process™) for reducing contaminants from coal-fueled power plants. Airborne Clean Energy holds the exclusive rights to the patented Airborne Process™ throughout the United States and Canada under license from Airborne Technologies Inc. of Calgary, Alberta, Canada.

Peabody Energy (NYSE: BTU) is the world's largest private-sector coal company, with 2003 sales of 203 million tons and $2.8 billion in revenues. Its coal products fuel more than 10 percent of all U.S. electricity and more than 2.5 percent of worldwide electricity.

HPD, a Veolia Water Systems company is a subsidiary of Veolia Environment (NYSE:VE and Euronext Paris: VIE), the largest environmental services company in the world with more than 295,000 employees in 100 countries and annual revenues of more than $25.6 billion. HPD has partnered with Airborne to design and build the equipment necessary for the Airborne regeneration facility.

Icon, Inc. is a private corporation that specializes in providing engineering (through its affiliate, Datel Engineering), construction, and facility operating services for industrial applications. Icon is known globally for its innovative solutions and commercialization of new technologies in the steel and aluminum industries. Icon's extensive experience with pan granulation, agglomeration, and material handling is directly applicable to Airborne's fertilizer production facility.

- 30 -