Sauer Energy Inc.(TM) Announces Letter of Intent to Acquire 100% of City Windmills Inc.

NEWBURY PARK, CA--(Marketwire - Dec 8, 2011) - Sauer Energy Inc.™ ("SEI™") (OTCBB: SENY), a developer of home and enterprise scale vertical axis wind turbine (VAWT) systems, announced today that it has signed a non-binding Letter of Intent (LOI) with City Windmills Inc., a Delaware corporation.

According to the terms of the LOI, Sauer Energy Inc.™ and City Windmills Inc. intend to discuss the full purchase of the company and its Government contract for the wind power sector. If all goes according to plan, fulfillment of the contract, will aggressively expand Sauer Energy's™ operations.

This potential source of revenue will further cement our commitment to produce American-made products. The advent of President Barack Obama's renewable energy program and the desperate need for employment growth places Sauer Energy™ in the unique position to be a key contributor toward the goal of employment growth.

Due to non-disclosure agreements between Sauer Energy Inc.™, City Windmills Inc. and the Government agency, the sensitive details regarding the agency are unavailable at this time.

The transaction is subject to the parties' completion of a definitive agreement. If achieved, Sauer Energy Inc.™ will be able to release the full details of the transaction to the public following the closing of the deal and approval from the Governmental agency's legal counsel.

Under the terms of the LOI, Sauer Energy Inc.™ will acquire all issued and outstanding shares of City Windmills Inc., which will become a wholly owned subsidiary of Sauer Energy Inc™.

"The reason we are pursuing this acquisition, which we feel is a monumental step for our company and its shareholders, is to open up new channels of sales that will enhance our bottom line. We are very excited about the opportunity that has been placed before us. The closing of the transaction is subject to execution of definitive agreements and the completion of due-diligence by all parties.

"Furthermore, the selection of Roland J. Bopp as a member of our team, will be a contributing asset to our future balance sheet," stated Dieter Sauer, CEO and President of Sauer Energy Inc.™

Roland J. Bopp, the current CEO of City Windmills Inc., will remain as CEO of the wholly owned subsidiary to manage the Governmental contract.

About Roland J. Bopp

Mr. Bopp is a seasoned CEO with an incredible track record running multiple billion dollar companies:

Executive Vice President of Mannesmann Corp., a $20 billion engineering and telecommunication services company operating worldwide, with annual North American sales volume of $2.7 billion.

CEO and member of the Board of Directors of Billing Services Group LTD., a telecommunication industry's leading clearing and settlement, payment and financial risk management solution companies with operations in North America and Europe with annual sales volume of approximately $180 million and over 300 employees.

Chairman, President & CEO of the Americas for Deutsche Telekom Inc., a subsidiary of Deutsche Telekom AG, the largest telecommunications company in Europe. He was responsible for all of Deutsche Telekom activities in North and South America, including the alliance with France Telecom and Sprint.

Executive Vice President of Hochtief, Inc. / Turner Construction Company, New York, N.Y., a US subsidiary of Hochtief AG, Germany, a leading global systems provider in the engineering and construction sector with annual sales of approximately $13 billion.

"I am very pleased to be joining Sauer Energy's™ senior management team and am looking forward to growing the company's business in the Government sector," stated Roland J. Bopp, CEO and Chairman of City Windmills Inc.

About Sauer Energy™
Sauer Energy™ is a technology developer and planned 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.