April 3, 2008

Progress Update

Press Release Alert

Over the last few weeks, the Company has had several calls from shareholders in connection to the current status of the Company’s activities. Callers were advised that a Press Release should be expected shortly. Our inability to say anything at this time is disappointing. However, an agreement that was reviewed by our attorneys and Directors and subsequently executed will allow the Company’s showcase installation to be located close to several large population centers on the US eastern seaboard.

The agreement contains a provision that does not permit information pertaining to the agreement to be made public until we have prior approval from, and a joint Press Release with, the other party. A Press Release is anticipated for later this month. The Press Release will also appear in the Alliance website News section as soon as it is available.

The Company appreciates the patience and resolve of our shareholders. Shareholders are assured that the forthcoming Press Release should clearly describe our intent for the construction and installation of a waste-to-energy facility at the proposed site.

Corporate Offices Moved To Wilmington, Delaware

Shareholders should also be advised that in anticipation of finally moving forward to develop an east coast waste-to-energy facility, the Company’s corporate office has been moved to Wilmington, Delaware and construction and installation will be coordinated from this location. The office address is as follows:

Alliance Recovery Corporation
1000 N. West Street
Suite 1200
Wilmington, Delaware
19801
Tel: 302.651.0177
Fax: 302.651.9177

All inquiries, correspondence and investor relations’ matters should be directed to this office.

Accounting Changes: Sarbanes-Oxley Compliance

The Company has received several calls from knowledgeable shareholders pertaining to the impact of Sarbanes-Oxley Compliance. The Company’s accountants and SEC approved Auditor are completing our 2007 Year End that will be filed with the SEC in the weeks ahead. In connection with the 2007 Year End filing, shareholders should be advised that activities to ensure that the Company was Sarbanes-Oxley (SOX) 404 compliant commenced in August 2007. SOX 404 provides for even greater protection to investors and shareholders in connection to financial controls, transaction approval, and overall monitoring of all financial affairs of the Company. This also includes the issuance of shares and all matters pertaining to the Company’s authorized shares.

For a development stage Company like Alliance, meeting the previous SEC requirements was time consuming and expensive. The new SOX 404 standard is comprehensive and from a financial reporting perspective will add additional time and expense to accounting and audit procedures. Although Alliance had adequate financial controls already in place, additional reporting as well as a formalized review process by the Board of Directors and a finance committee is now required.

In a development stage Company like Alliance, there are very few financial transactions to record, so even under the previous SEC regulations and Audit requirements there was significant transparency. SOX 404 provides even greater transparency thereby further reducing, if not eliminating, opportunities for fraudulent activities to occur. SOX 404 puts a greater emphasis on management and the Board of Directors in combination with accounting and Audit procedures to protect the public from fraudulent and/or inappropriate behavior at all levels within the Company.

Much of the financial reporting structure required by SOX 404 had been in place since the Company’s initial Registration Statement to the SEC. As we move through the permitting phase into the construction and installation phase of the facility’s development, SOX 404 compliance and the additional financial controls and reporting requirements are viewed as not negatively impacting the efforts of the Company and provide management and shareholders with greater knowledge, protection, and transparency.

Continued Financial Support from Directors

Again in 2007, the Directors and/or Management of Alliance and their families continued to provide funding to support the Company’s activities. This will be reflected in the 2007 Year End. Shareholders are reminded that since November of 2002, the Directors have continued to make significant financial contributions in the form of loans, share purchases and unpaid expenses and fees.

This continued financial support from the Management group is a clear indication and example of their confidence in the overall Alliance initiative. Although our progress has been slow, shareholders are reminded that environmental projects are difficult from a regulatory perspective. Combine an environmental project with an energy facility and regulatory matters are compounded. So it is not realistic to think these matters will be resolved quickly.

The Management group has also initiated specific activities with entities looking to augment the current financing arrangement with a more conventional equity and/or debt financing. The latest of these efforts commenced April 1, 2008. Our quickest and safest route to market success is to get a plant built. Management efforts are focused on this objective.

Media and Information Campaign

Since September of 2007, the Company has worked toward a public relations campaign to increase awareness of the Alliance potential in the broker/dealer and investment community. These campaigns are expensive and it is extremely difficult to ascertain the ability of a campaign to deliver an audience of interested buyers. As our resources are limited, management moved very slowly in the selection of a firm to work on our behalf. That selection process has been completed and in the weeks ahead a real effort will be made to communicate the Alliance story to broker/dealers across the country. Targeted at specific national audiences, this media campaign will raise the level of awareness of the Alliance business initiative in the investment community. For the first time, this effort will have a national focus.

Our message is timely and continues to attract the attention and imagination of individuals that are knowledgeable about the environment, energy, oil imports and domestic fossil fuel consumption. America needs to look at scrap tire and rubber disposal, and those unsightly piles of tires differently. Rather than being the disposal nightmare historically associated with this material, America’s scrap rubber disposal represents a fuel oil resource that is often disposed of in a way that the fuel oil resource contained in the material is lost forever. Alliance has a unique solution with both economic and operational advantages that removes the scrap rubber from the environment forever leaving electrical energy behind to support a community’s residential and/or industrial demand.

Conference Calls

The next conference call will be April 22, 2008 at 7:30 PM EDT. Over the last several months the conference calls have not been particularly successful, as they were not well attended. We will try another call and would like our shareholders to advise us as the frequency and timing of conference calls in the future or if the calls should simply be terminated.

Our original hope was that conference call participants would take advantage of an opportunity to ask Management questions and learn about specific initiatives. This is a great opportunity for shareholders, so please take advantage of it.

Conference Call Number: 1-218-936-1035
Conference ID: 241073#

Shareholder Questions

We continue to encourage investors and shareholders to contact the Company with any questions you may have concerning the business and/or financial affairs of the Company.

For Investor Relations please call 1-302-651-0177

Improvements to Website

The Company’s website is currently schedule for an overhaul. We hope that by the middle of June 2008 we have a new look with additional features.