Department of Defense Leads Attendees at ARSC Hydra Unit Hydrogen Fuel Cell Demo

Business Wire, Jan 19, 2006

HOUSTON -- American Security Resources Corporation (OTCBB:ARSC) announced today that its wholly owned subsidiary, Hydra Fuel Corporation, will demonstrate beta units of its proprietary hydrogen fuel cells to a select group of potential customers which includes the Department of Defense -- Army Corps of Engineers, Qwest Communications, Verizon Communications, Foxconn, the Oregon Institute of Technology and a major regional utility, among others. E[acute accent]The demonstration will take place at Hydra's facilities in Beaverton, Oregon, on Friday, January 20, 2006. E[acute accent]An additional demonstration is planned for a group of investors on Saturday, January 21, at the same location. E[acute accent]Ed Davis, Chairman of Hydra, explained, "The HydraStax(R) hydrogen fuel cell is designed to be the first commercially mass producible hydrogen fuel cell. Our beta units are performing much better than expected. The applications for this type of fixed power with the military and commercial customers number in the hundreds of thousands." E[acute accent]Hydra expects to place beta units with customers shortly after the demonstrations.

E[acute accent]American Security Resources Corporation

E[acute accent]ARSC is a holding company actively seeking to acquire companies and technologies that will advance the development of alternative energies. ARSC, through its Hydra subsidiary, is developing high volume mass producible hydrogen fuel cells. For more information, please see: www.americansecurityresources.com.

E[acute accent]Safe Harbor Statement

E[acute accent]This news release contains certain "forward-looking statements" within the meaning of Section 27a of the Securities Act of 1933 and Section 21e of the Securities Exchange Act of 1934. Although the Company believes the expectations reflected in such forward-looking statements are reasonable, it can provide no assurance that actual results will meet or exceed such expectations.