International Energy Develops Proprietary Protocols for Algal Growth and Biofuel Productivity.

International Energy uses proprietary algae that photosynthesize carbon dioxide and water to make biofuels, which can be refined to make gasoline, diesel and jet fuel using currently available technology.

Vancouver, BC – December 17, 2007 – International Energy, Inc. (OTCBB: IENI) is pleased to announce the development of novel, custom-made nutrient delivery protocols for the efficient and enhanced growth of hydrocarbon accumulating microalgae, an important breakthrough for the Company.

International Energy’s nutrient composition and macro-chemical configuration is formulated to facilitate efficient nutrient uptake by the microalgae, thereby alleviating specific identifiable nutrient absorption limitations and enhancing rates of growth and hydrocarbon productivity.

Because of their unique and natural ability to produce bio-oils, microalgae have long been considered a promising source of next-generation biofuels, as bio-oils can be processed and refined into transportation fuels using currently available technology. However, principal challenges holding back microalgae as a potential source of biofuels includes identifying the best strains, developing nutrient delivery protocols for the efficient growth of the microalgae and creating cost efficient algal harvesting and oil extraction methodologies.

International Energy’s proprietary microalgae photosynthesize carbon dioxide (CO2) and water (H2O) to naturally produce and accumulate liquid hydrocarbons, up to 30% of their dry biomass, thereby resolving the first major hurdle of identifying an ideal strain. Today’s announcement regarding the development of proprietary nutrient delivery protocols for enhanced algal growth and biofuel productivity is an additional significant milestone that brings the Company one step closer to its goal of producing bio-oils from microalgae on a commercial scale.

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ABOUT INTERNATIONAL ENERGY INC.

International Energy, Inc. (Symbol: IENI) is developing leading edge technologies for the production of biofuels derived directly from the photosynthesis of green microalgae, which can accumulate up to 30% of their biomass in the form of valuable biofuels.

As a result of current high oil prices, depleting fossil oil reserves and growing concerns about increased levels of atmospheric carbon dioxide, algae have emerged as one of the most promising sources for biofuel production.

Our technology seeks to convert water (H2O) and carbon dioxide (CO2) into useful long-chain liquid hydrocarbons from the photosynthesis of unicellular microalgae, which offer advantages in the production, storage and utilization of renewable biofuels, as they can be harvested easily, stored in liquid form and do not require special containment systems.

The process of industrial scale algae growth in photo-bioreactors is non-toxic and non-polluting, can be scaled-up, offers a renewable energy supply, and aids in carbon sequestration and the mitigation of climate change.

In contrast to biofuels from food crops or cellulosic materials, certain algae produce and accumulate oil naturally and can in the process clean up waste by absorbing and utilizing nitrogen oxides and carbon dioxide. Additionally, raw algae can be processed to make biofuel, the renewable equivalent of petroleum, and refined to make gasoline, diesel, jet fuel, and chemical feedstocks for plastics and drugs.

For additional information regarding International Energy Inc., please call 1-800-676-1006 to speak with a shareholder representative.

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Disclaimer

Certain statements set forth in this press release relate to management's future plans, objectives and expectations. Such statements are forward-looking within the meanings of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical facts included in this press release, including, without limitation, statements regarding the Company's future financial position, potential resources, business strategy, budgets, projected costs and plans and objectives of management for future operations, are forward-looking statements. In addition, forward-looking statements generally can be identified by the use of forward-looking terminology such as "may," "will," "expect," "intend," "project," "estimate," "anticipate," "believe," or "continue" or the negative thereof or similar terminology. Although any forward-looking statements contained in this press release are to the knowledge or in the judgment of the officers and directors of the Company, believed to be reasonable, there can be no assurances that any of these expectations will prove correct or that any of the actions that are planned will be taken. Forward-looking statements involve known and unknown risks and uncertainties that may cause the Company's actual performance and financial results in future periods to differ materially from any projection, estimate or forecasted result. Some of the key factors that may cause actual results to vary from those the Company expects include inherent uncertainties in interpreting engineering and reserve or production data; operating hazards; delays or cancellations of drilling operations because of weather and other natural and economic forces; fluctuations in oil and natural gas prices in response to changes in supply; competition from other companies with greater resources; environmental and other government regulations; defects in title to properties; increases in the Company's cost of borrowing or inability or unavailability of capital resources to fund capital expenditures; and other risks described the Company's most recent Form 10QSB and Form 10-KSB filed with the Securities and Exchange Commission, our quarterly reports on Form 10-QSB and other current reports filed from time-to-time with the Securities and Exchange Commission.