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Alliance Recover Corp. (ARVY.OB) – Summary of Conference Call Discussion Oct. 23, 2007

Addressing the Need for Greater Retail Support

It is the Company’s opinion that there is no reasonable explanation as to why the current stock price is so low other than the fact that the stock has very little, if any, retail support.  This is really surprising considering oil prices have exceeded $93.00/barrel and energy prices in the US continue to increase.  Alliance’s ability to generate significant volumes of fuel oil in their proposed waste to energy installations as the fuel for environmentally friendly electrical generation should not be overlooked by investors.  Approximately, 6 Million barrels of fuel oil could be recovered for the production of electricity from the 300 Million scrap tires disposed of in the US annually.

To develop retail support, Alliance Recovery Corporation has commenced discussions with several consultants pertaining to the implementation of an awareness campaign and has initially, retained the services of a consulting firm to commence an awareness campaign in the US to generate retail support for the Company’s stock. Over the next several months, additional consultants may be retained and an awareness campaign and/or campaigns will be targeted in such away as to develop greater retail support.

Equity Line Project FinancingSeveral shareholders have made inquiries as to the Dutchess Private Equities financing and more specifically, have indicated that Dutchess could negatively impact the stock price if they were to sell too many shares into the market at one time.  The agreement with Dutchess that was executed by both parties, allows Alliance to set the floor price for Dutchess sales into the market.  Dutchess has a genuine interest in an orderly market and their continued business is dependent on successes of Companies like Alliance.  The Company will continue to closely monitor this situation. 

Salem, New Jersey: The Proposed Development Site

Our announcement pertaining to the New Jersey site MOU and the reported activities of our consulting engineers, Resource International (“Resource”), apparently did not make our intentions sufficiently clear.  Terms of a long-term lease will be negotiated with Corbett Aggregate Company, the current owners of the site.  Only upon the completion of preliminary engineering activities, including a review of the environmental assessment, obtaining the appropriate permits to construct and operate, and the implementation of the terms of the lease agreement, will the Company be in a position to commence site-specific construction activities to complete the installation of the waste-to-energy facility. 

It remains our opinion and the opinion of our consulting engineers that the permitting activity to obtain the necessary local and state approvals, could take as long as 6 months or more. Subsequent to obtaining the required approvals, it is the Company’s intention to finalize any outstanding matters with the owners of the Salem, New Jersey site pertaining to the full implementation of the long-term lease of the proposed Salem site.  Shareholders that are not familiar with the regulatory processes associated with industrial environmental permitting are advised that the full implementation of the terms of the long-term lease will be conditional upon obtaining specific environmental permits to construct and operate the facility.

Environmental Permitting for the Development Site

It is the opinion of Resource that there does not appear to be any “show stoppers” related to obtaining the appropriate local and state permits that would allow the Company to complete the long-term lease and commence construction activities at the Salem site.  Once these permit are obtained, the Company will them complete the installation of an environmentally friendly system, that causes rubber waste to be removed from the planet forever, leaving nothing behind but clean energy.  Converting scrap tires and rubber waste to electrical energy in, or immediately adjacent to communities generating the rubber waste provides these communities with disposal infrastructure and community based electrical energy production.
 
There has been significant progress allowing the engineers to provide a specific scope of work and they are now developing a timeline pertaining to both the preliminary fabrication drawings and local and state permitting.  It will also be necessary to configure the system so as to maximize the use of the existing Salem buildings rather than to simply construct a building over the entire waste-to-energy process system.  As previously mentioned, it remains our opinion and the opinion of our consulting engineers that the permitting activity to obtain the necessary local and state approvals, could take as long as 6 months or more.

State and Local Support

The conversion of rubber to fuel oil for the generation of electricity is a long-term solution to rubber waste disposal in southern New Jersey and surrounding metropolitan centers.  This is particularly true now more than ever before as a result of state and federal efforts to reduce our dependence on foreign oil and the development of alternative energy sources.  Using the Alliance integration of existing technology and processes, it is the opinion of the Company and Resource that Alliance has developed a cost effective process that addresses the requirement for sustainable scrap tire and rubber waste disposal.  At the same time, the Alliance installation provides community based, reliable base load and/or on peak electrical generation.  State and local officials at meetings and/or in conversations have been supportive of the Company’s initiative in New Jersey.  Furthermore, it remains the Company’s opinion that the Salem facility will embody specific unique operational and economic advantages that will benefit the state and local community.

Warrant Expiry Date

The Warrant extension matter has been under consideration for several months as Management has grave concerns pertaining to current market conditions impacting the ability of shareholders to exercise their Warrant to Purchase Shares of Common Stock.  There have been numerous discussions with several of the Company’s shareholders.  Management is inclined to extend the Warrant expiry date in the hope that market conditions would be more favorable allowing shareholders to exercise their Warrants.  It was suggested that the Company’s attorneys would review this matter.  An announcement will be forthcoming within the next 30 days addressing the proposed Warrant expiry date extension.

Monthly Conference Calls

Commencing November 23, 2007, there will be a monthly conference call for all interested parties and/or shareholders that would like to hear updates from management and/or their consultants.  Calls will be scheduled for the 3rd Tuesday of each month.
The conference telephone number is:
            218.936.1035
Followed by the conference ID:
            241073#

ContactAlliance Management
519-671-0417

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