News Release

FIRST AMERICAN SCIENTIFIC CORP and THERMIX announce that Hydro-Quebec Capitech Inc, the investment capital division of energy giant Hydro Quebec, one of the worlds largest hydro-electric power producers, has joined Alternative Green Energy Systems Inc (AGES) as an equity partner with an initial investment of $1,000,000 to assist in research & development, marketing and operations.

Cal Kantonen, Chairman of FASC is pleased to advise its shareholders that, after several months of technical analysis and due diligence, Hydro Quebec Capitech Inc has decided to become a partner with Thermix and FASC in Alternative Green Energy Systems Inc (AGES), First American's new alternative energy subsidiary. The first installment of $ 600,000 was received February 28, 2002 and will be used for research & development, marketing and general working capital. Hydro Quebec Capitech Inc will have one representative on the AGES Board of Directors and will provide expertise and assistance where possible in promoting AGES energy technologies, and in developing public awareness of alternative green energy solutions.

AGES President, Bill Barber, acknowledges the huge significance that the contribution of Hydro Quebec, who have $ 60 billion dollars in assets worldwide, will bring to enhancing AGES efforts to become an international leader in developing alternative renewable energy sources using FASC's KDS Micronex technology and Thermix's combustion technologies. AGES will initially be focusing on pulp sludge de-watering to create a combustible fuel, but has also acquired a license from FASC to develop a biomass combustion system which will convert all forms of wet wood waste (Biomass) into energy in a single, low cost process. The licensed territory includes North America and Europe.

For project implementation, AGES has engaged the services of the Simoneau Group in Montreal, headed by Blake McGibbon P.Eng. who has 15 years specialized experience in the Pulp & Paper industry Simoneau will provide research facilities, project management, sales & marketing expertise and turnkey installation services to AGES's clients. Representing FASC's technical interests will be Dr. Sundar Narayan, PhD in Engineering Science, the newly appointed Vice President, Research & Development of FASC.

The KDS Biomass Combustion System was first commercially showcased by AGES at the pulp & paper industry's PAPTAC conference in Montreal in January 2002. Interest in the process has been extraordinary. According to Andrew Burns B.Sc., AGES Director of Engineering, "the KDS Micronex has proven its ability to mechanically separate water from biomass and pulp sludge at temperatures well below vaporization levels. This allows for unprecedented energy gains when drying biomass and pulp sludge, and eliminates the need for a costly supplemental heat source, usually natural gas, when recycling the waste products. With the KDS system, the biomass or pulp sludge becomes a fine dry combustible powder which can be injected directly into Thermix's unique dust burning system and converted to BTU s. The projected return of investment to AGES customers will be less that one year, as the process significantly reduces expensive landfill, disposal and transportation costs, while, at the same time, produces energy. We have attracted significant interest from large pulp & paper industry clients who will now be able to solve a costly environmental problem, and also make energy to replace fossil fuels using the KDS Combustion System. To date, AGES has issued 11 quotations to qualified purchasers totaling over $25 million and are expecting to receive the first orders with in the next three months.

Certain information and statements included in this release constitute forward-looking statements within the meaning of Federal Private Securities Litigation Reform Act of 1995.

ON BEHALF OF THE BOARD OF DIRECTORS C.L. Kantonen , Chairman FASC: (NASD Bulletin Board - FASC OTC/BB) Web Site: www.fasc.net
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