International Fuel Technology, Inc., Energy and the Incoming Obama Administration

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Obama energy plan aimed at building a clean and sustainable energy future includes reducing greenhouse gas emissions 80% by 2050. How one St. Louis based company is poised to capitalize on the energy objectives of the incoming Administration.

If the Obama Administration is serious about its energy agenda, then the marketplace will take keen interest in the technologies that IFT has to offer

International Fuel Technology, Inc. ("IFT") (OTCBB: IFUE). U.S. President-elect Barack Obama and Vice President-elect Joe Biden have an aggressive new energy plan aimed at building a clean and sustainable energy future. Some of the goals of the energy plan include: ensuring that 10% of U.S. electricity comes from renewable sources by 2012, and 25% by 2025; increasing fuel economy standards; and reducing greenhouse gas emissions 80% by 2050. IFT has two proprietary fuel additive technologies, DiesoLIFTTM 10 and DiesoLIFTTM BD-3 that are well positioned to capitalize on the stated energy objectives of the incoming Obama Administration.

DiesoLIFTTM 10 is IFT's proprietary fuel additive formulation that is proven to increase fuel economy and reduce greenhouse gases and other harmful emissions when used with diesel fuel and bio-diesel fuel blends. Extensive testing at prominent independent laboratories and field trials have validated that DiesoLIFTTM 10 increases fuel economy, on average, by 5%.

The return on investment that DiesoLIFTTM 10 offers end users is compelling. With the assurance of substantial fuel economy gains, end users realize significant and sustainable cost savings even with lower fuel prices. Plus, the return on investment is immediate: every time the end user consumes a tank of fuel, the return on investment is realized.

"IFT is one of the few green technology companies whose products also provide a net economic benefit to the end user," said Jonathan R. Burst, IFT's Chairman and CEO. "The use of most green technologies requires an upfront investment and only provides an environmental benefit. Green technologies that are costly and financially burdensome to end users, no matter how beneficial the use of a technology is to the environment, are far less likely to be adopted, unless mandated. Use of IFT technologies requires no up front investment and provides immediate benefits."

DiesoLIFTTM BD-3 is IFT's proprietary fuel additive formulation specifically designed for use with bio-diesel fuel blends. DiesoLIFTTM BD-3 has been extensively tested at prominent independent research facilities. It has proven to be the most effective stabilizer formulation in the market today for addressing oxidation stability and deposit control in bio-diesel, both in pure form or blended with diesel fuel.

"The production and use of bio-diesel will continue to expand worldwide," said Sergio C. Trindade, IFT's Director of Science and Technology and co-winner of the 2007 Nobel Peace Prize for Climate Change with former Vice President Al Gore. "The worldwide focus on renewable, cleaner energy sources such as bio-diesel is undeniable. Just as ethanol blended into gasoline has become a market reality, so too is the market for bio-diesel blended into diesel. As the bio-diesel market expands, non-edible vegetable oils are likely to play a larger role, thus avoiding the food versus fuel dilemma. DiesoLIFTTM BD-3 has been tested and proven effective with all types of underlying bio-diesel source materials."

"If the Obama Administration is serious about its energy agenda, then the marketplace will take keen interest in the technologies that IFT has to offer," said Dr. Trindade. "IFT fuel additive formulations: enhance the performance and economic viability of bio-diesel fuel blends through fuel stability, deposit control and increased fuel economy; enhance the performance of diesel fuel through increased fuel economy; and reduce greenhouse gases per unit of work performed and other harmful emissions resulting from the combustion of diesel fuel and bio-diesel fuel blends."

Commercial Update

The commercial goal of IFT continues to be the bulk sale (by the ton) of DiesoLIFTTM 10 and DiesoLIFTTM BD-3 to major end users of diesel fuel and bio-diesel fuel blends, including: railroads; stationary power generation operators; centrally-fueled truck/bus fleets; and marine vessel operators.

IFT's primary strategy to achieve this goal is to outsource marketing and distribution by partnering with prominent fuel additive distribution companies and oil companies with existing customers and distribution channels.

IFT has emerged from the research and development phase and is in the early stages of commercializing its technology. Through distribution partners IFT has clients that are purchasing and using DiesoLIFTTM 10 and DiesoLIFTTM BD-3. IFT products are marketed to end users either relabeled or under IFT brand names.

IFT is involved in a number of commercial projects all over the world, including:

  • Libya Oil Holdings (LOH): Through the efforts of Vision Oil Services (VOS), IFT's distribution partner in Africa, IFT signed a memorandum of understanding with LOH. LOH will be introducing a new premium diesel product additized with DiesoLIFTTM 10. (LOH is an integrated oil company involved in the shipping, trading, refining, marketing and sale of crude oil and refined petroleum products. LOH also operates thousands of retail petrol stations in Africa and in Europe through Tamoil.)
  • In June 2008, VOS and Libya Africa Investment Portfolio invested an aggregate $2 million in IFT through the purchase of 4 million shares of IFT common stock.
  • IFT anticipates the success of LOH's new premium diesel product will prompt other oil companies to follow the lead of LOH and make meaningful commitments to improving the environment by offering a fuel savings and emissions reducing diesel fuel additized with DiesoLIFTTM 10.
  • The Association of Train Operating Companies in the U.K. (ATOC): IFT has been working with ATOC since 2005. Three rounds of extensive laboratory testing and two supporting field trials have provided clear evidence that use of DiesoLIFTTM 10 generates a significant fuel savings and economic benefit. A final phase of expanded field trials is scheduled to commence in the first quarter of 2009, which if successful, should result in major sales of DiesoLIFTTM 10 to the ATOC system.
  • The success with the ATOC tests and trials has also furthered IFT's progress with rail opportunities in India, Brazil and Peru. IFT believes that success with current rail opportunities will lead to additional rail opportunities in Europe and the U.S.
  • IFT's strategy of partnering with prominent fuel additive companies to distribute IFT additive formulations is beginning to produce positive results. One European-based distribution partner has begun to realize revenues from the bulk sale of its products to renowned fuel additive companies who are repacking IFT products under their own name for resale to mass retail markets in France, Belgium, Spain and Portugal.
  • Another European-based distribution partner recently began to offer IFT products to commercial accounts in Germany, Austria and Switzerland.
  • DiesoLIFTTM BD-3: Extensive research, development, product validation testing and no-harm testing has been completed. DiesoLIFTTM BD-3 has clearly demonstrated that it is a top performing technology in the market. The product has already been approved for use by a number of bio-diesel producers around the world. IFT distribution partners have begun to market and sell the product in their respective territories. In addition, one of the largest chemical companies in the world has completed in-house testing and evaluation of DiesoLIFTTM BD-3. Discussions have commenced regarding a partnership agreement affording this company distribution rights to market and sell DiesoLIFTTM BD-3 to accounts all over the world.
  • Research and Development: Efforts to improve the performance of IFT fuel additive formulations are ongoing. IFT has partnered with prominent independent test laboratories, chemical companies, fuel additive distribution companies and oil companies to further the development of and enhance the performance of its products on a stand alone basis, or as part of a fuel additive package. For example, a world-renowned oil company has extensively tested and evaluated IFT technology and is currently contemplating using IFT technology as part of an additive package to be used with the diesel fuel supplied to its retail stations and commercial accounts.
  • U.S.: Multiple fleets with over the road tractors and fleets of heavy-duty equipment have been using DiesoLIFTTM 10 for many years. Average fuel economy gains have exceeded 5%.

In summary, IFT has two of the top performing fuel additive technologies in the world today, DiesoLIFTTM 10 and DiesoLIFTTM BD-3, that target markets where consumption is massive and growing and environmental concerns and pressures to reduce harmful emissions are real. The time consuming process of tests and trials has generated real commercial opportunities which should begin to produce meaningful revenues to IFT in 2009. The energy priorities of the incoming Obama Administration should enhance the commercial opportunities for IFT's proprietary fuel additive technologies.

Safe Harbor Statement
Some statements contained in this release may be forward-looking within the meaning of the safe harbor clause of the Private Securities Litigation Reform Act of 1995 including, but not limited to, statements as to commercialization of the Company's products and business development activities. Editors and investors are cautioned that such forward-looking statements involve risks and uncertainties that may cause the Company's actual results to differ materially from such forward-looking statements. These risks and uncertainties include, but are not limited to, the Company's ability to generate revenues and other factors as described in the Company's literature and filings with the Securities and Exchange Commission.

Company Contact:
Stuart Beath
Chief Financial Officer
International Fuel Technology, Inc.
314-727-3333 x417

Further information on DiesoLIFT™ may be found at IFT's website at: http://www.internationalfuel.com

IFT would also like to invite you to learn more about the Company by taking a look inside their headquarters with a personal video tour. Please visit http://www.IFT-TECH.com to begin your tour today.

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