August 22, 2005 14:11 ET

WindStor Power Co. and Ishpeming Housing Commission Enter Into Power Purchase Agreement

DETROIT, MI -- (MARKET WIRE) -- August 22, 2005 -- (OTC BB: MKBY) -- McKenzie Bay International, Ltd. announced today that its wholly owned subsidiary, WindStor Power Co., has entered into its first Power Purchase Agreement ("PPA"). The Ishpeming Housing Commission of Ishpeming, Michigan, has agreed to purchase onsite generated electricity intended to be provided by a WindStor® Wind Turbine for a Housing and Urban Development ("HUD") sponsored senior citizen apartment building known as "Pioneer Bluff."

Gary L. Westerholm, McKenzie Bay President, said, "We are very pleased that our first commercial installation is within our home state. Installing WindStor® at Pioneer Bluff is an exciting opportunity to showcase WindStor® benefits to all urban-commercial, industrial and governmental rate payers."

WindStor Power Co. ("WPC") is the owner and operator of WindStor®, a wind energy system designed to integrate distributed generation wind power, installed on or near urban buildings, with grid, off-grid and other power sources. WindStor® features a patent pending "second generation" vertical-axis WindStor® Wind Turbine and a "proprietary" system integrator.

First Commercial Urban Installation Planned in Michigan

Subject to all of the conditions to the PPA being satisfied, Ishpeming will purchase electricity generated by WindStor® from WPC at a fixed rate for the first fifteen years of the twenty-year PPA. Rates will subsequently be adjusted. WPC's renewable, distributed generation wind technology will provide an immediate power cost reduction and more importantly, a hedge against future grid-related rate increases. WPC will build, operate and maintain WindStor® with no capital expenditure by Ishpeming.

Evelyn Valente-Heikkila, Ishpeming Mayor and Housing Commission Executive Director, said, "WindStor® is a small-scale wind turbine designed for operation in harsh environments, easily exceeding all requirements by governmental agencies for safe operation in urban environments. WindStor® is the perfect solution for less expensive electricity at Pioneer Bluff for many years to come, and we welcome the opportunity to be the first to benefit from this innovative wind generation technology."

WPC Sales Representative, MTI Lighting Specialists, Inc. of Brighton, Michigan, sourced the transaction with assistance from M-TEC at Bay College in Escanaba, Michigan. Founded in 1989, MTI is a full-service energy management company that provides professional lighting and energy conservation products and services, such as financing, performance contracting (savings-based) and long-term maintenance contracts to ensure the integrity of the upgrades.

Brian Zaplitny, MTI CEO, said, "Our scope of services allows us to present cost-effective solutions to our customers' needs to reduce energy costs. We are extremely excited to have the opportunity to represent WindStor® systems to our clients. The unique WindStor® technology generates cost-effective electricity on site and provides our customers with a fixed, long-term supplement to their electricity requirements."

Prior to designing the system configuration and installation, WPC will complete site-specific due diligence pursuant to the PPA with Ishpeming including: mast height for the optimal wind regime; required zoning and permits; geotechnical composition and any regulatory or governmental authorization. WPC will then submit a final pricing structure to the Ishpeming Housing Commission. Upon acceptance, WPC will complete financial arrangements, and proceed with the installation.

Contact: Investor Relations - Richard Kaiser - 800-631-8127
          info@yesinternational.com
         McKenzie Bay International, Ltd & WindStor Power Co -
          248-489-1961 info@mckenziebay.com
         Ishpeming Housing Commission - Evelyn Valente-Heikkila -
          906-485-4100
         MTI Lighting Specialists - Brian Zaplitny - 248-446-9505
          bzaplitny@mti-energy.com

This information statement contains statements that are forward-looking statements. In some cases, you can identify forward-looking statements by terminology such as 'estimates,' 'anticipates,' 'plans,' 'believes,' 'projects,' 'expects,' 'intends,' 'predicts,' 'future,' 'may,' 'potential,' 'contemplates,' 'will,' 'should,' 'could,' 'would' or the negative of such terms or other comparable terminology. These statements relate to the Company's future operations and financial performance or other future events. These statements are only predictions and not guarantees of future success. Many of the forward-looking statements are based on assumptions about future events that may prove inaccurate. Actual events, results, performance or achievements may differ materially from the events, results, performance or achievements discussed in the forward-looking statements. McKenzie Bay undertakes no obligation to revise, update or clarify forward-looking statements to reflect events or conditions after the date of this information statement.