Sauer Energy Rejects City Windmills, Inc. Purchase

NEWBURY PARK, CA--(Marketwire - Feb 10, 2012) - Sauer Energy, Inc. ("SEI") (OTCBB: SENY), a developer of home and enterprise scale vertical axis wind turbine (VAWT) systems, announced today that the opportunity to purchase City Windmills, Inc., a Delaware corporation, has been declined based primarily on the probable monetary impact to Sauer operations.

Presently, all talks, negotiations and due diligence has been stopped with no further attempts planned to continue with this acquisition.

Full termination is declared and all offers are off the table, including any and all management offers.

"Our shareholders come first. We feel that if we would have continued with this acquisition, our vision and focus would have been changed. The strategies we have planned are sound and our goals attainable. We prefer to stay on our intended path," stated Dieter Sauer, CEO and President of Sauer Energy, Inc.

This transaction did not meet Sauer Energy's due diligence scrutiny. Moreover, this acquisition could not justify the dilution of SENY stock. Devoting full attention to City Windmills, Inc., operations and the liabilities to Sauer Energy attached, did not contain any feasible viability. The operations of Sauer Energy would be impeded instead of enhanced.

"Our sales and vision are strategically compelling and with the strong demand for our product, the necessary value our shareholders require does not need to come from mergers at this time. Our long-term value will be delivered without any further disruptions," Mr. Sauer stated further.

Presently, Sauer Energy is moving forward to completing the necessary short-term goals to have sales this quarter, as planned.

We thank each and every one of you for your loyalty and support. Without you, we would not be where we are. This is a very exciting time and we look forward to seeing WindChargers™ nationwide.

About Sauer Energy

Sauer Energy is a technology developer and manufacturer focused on the emerging renewable energy market. We believe that because it requires few parts, SEI's technology, which provides a new direction for wind capture, will easily scale from residential to small community and up to large industrial scale. The market opportunity for a new, innovative technology is unlimited. Sauer Energy has created the WindCharger™ model to provide a better solution for the use of wind capture for residential or small building use.

The WindCharger™ was one of Sauer Energy's key innovation priorities. With several patents in place, SEI shall engage in manufacturing and commercialization in early 2012, and plans to see a financial return on its investments. To learn more about Sauer Energy and this revolutionary wind turbine system, please visit:

www.SauerEnergy.com

Sauer Energy... the future of energy!™

Forward-Looking Statements

This news release includes forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. While these statements are made to convey Company progress, business opportunities and growth prospects, readers are cautioned that such forward-looking statements represent management's opinion. Whereas management believes such representations to be true and accurate based on information and data available to the Company at this time, actual results may differ materially and are subject to risk and uncertainties. Factors that may cause actual results to differ include without limitation: dependence on key personnel and suppliers; SEI's ability to commercialize its wind turbine technology; ability to defend intellectual property; wind turbine material and component costs; competition; economic conditions; consumer demand and product acceptance, and availability of growth capital.

Additional considerations and risk factors are set forth in reports filed on Form 8-K and 10-K with the SEC and other filings. Readers are cautioned not to place undue reliance upon these forward-looking statements; historical information is not an indicator of future performance. The Company undertakes no obligation to update publicly any forward-looking statements.