International Fuel Technology Announces New Strategy Initiative Tied to Pollution Emission Reduction Technologies.

Business Editors

ST. LOUIS--(BUSINESS WIRE)--June 9, 2000

International Fuel Technology (IFT) (OTCBB:IFUE), along with the ownership teams of two emerging technologies also involved in the effort to reduce harmful pollution emissions, have announced their intent to combine their collective operations into a new company.

The new company, yet to be legally created, will operate under the branded identity of Performance Enhanced Emission Reduced Technologies or PEER Technologies. The PEER designation, already in use for IFT's line of post-refined treated fuels such as PEERdiesel(TM), under the proposed agreement would now become the brand identity for all technologies housed at PEER Technologies.

Diesel Products Inc. (DPI), a St. Louis-based company that has created a special fuel pump regulator, and Texas Environmental Pollution Solutions (TEPS), a Dallas-based company with an electrostatic fuel filter system, are the two technologies now being considered in combination with IFT's PEER system.

"Individually, all of our technologies are on the leading edge of emission reduction efforts tied to the burning of petroleum fuels in internal combustion engines. By combining our efforts, we can bring together a number of crucial synergies that make us collectively stronger, and we believe ultimately enhance the value of our companies beyond what we can obtain by remaining independent," stated William Lindenmayer, president of IFT.

Don Thompson, founder of TEPS, believes it is possible that the three technologies may even be enhanced when working together in various combinations. "We are not to the point where actual testing has been done using our multiple technologies at the same time, but we will move quickly to determine if indeed we do work better together," said Thompson.

No time frame has been established for joint testing efforts, however, IFT noted it is in advanced stages of setting up live fleet tests of both DPI and TEPS products with Addicks Services, a contracting and excavation company located in Richmond, Texas.

MarketMatch, consultants to IFT that specialize in commercialization efforts within the petroleum industry, will oversee the testing, which could start as early as the end of June.

"Each of our companies brings a unique and commercially attractive technology to the table," said Ray Savalla, president of DPI. "The idea of branding our respective efforts under one name, will allow us to create an association that will be immediate in the minds of those key players who might be instrumental to our achieving commercial success."

DPI, according to Savalla, is already selling a limited number of its Fuel Preporator(R) units, which act as a special fuel pump and filter that eliminates air and other excess elements in diesel fuel before it is injected into the engine chamber, allowing for a cleaner, more efficient burn.

Savalla feels there will be immediate benefits to being under the PEER Technologies umbrella such as better coordination of market development efforts, increased capital for advanced testing, and a deeper management team to oversee DPI's corporate strategy.

Thompson too feels a number of important benefits can be derived from a branded identity, as well as the resources that come from having these and other technologies centered in one entity. "For TEPS, it is difficult for us to independently commercialize our Electrostatic Filter System. We need help in a number of specific areas that our formal association with IFT and DPI will provide," said Thompson.

Lindenmayer stated that discussions with TEPS are more advanced than those with DPI, but that no formal agreement has yet been signed with either company.

"We have already engaged MarketMatch to start the due diligence on each company's respective technology, as well as provide us with a review of their commercial applications. So far, the results are very positive, certainly enough to warrant setting up fleet tests," Lindenmayer stated.

Once the fleet testing results are in place and the due diligence phase is completed, which also includes a review of the various patents held by DPI and TEPS, IFT expects to start formal negotiations with each company.

Lindenmayer did state his objective of having a decision to move forward with one or both of the companies within the next few months, and to close any formal agreement by start of the fourth quarter and immediately commence joint operations.

As for the integration of additional technologies, all three companies feel this could be a starting point for a succession of products that specifically focus on pollution emission reduction processes. The long-term goal of these and subsequent integration efforts is to make PEER Technologies the preeminent source of clean air technology.

Lindenmayer explained that the global market does not currently have a coordinated private effort to find, incubate and commercialize clean air technologies, and that PEER Technologies can fill this void.

"This problem of air pollution from internal combustion engines is too serious for the market to wait for individual efforts such as IFT, DPI and TEPS to reach critical commercial success on their own. We feel the idea of creating an incubator for ideas, and then using a branded identity to get them established in the market, is a more practical strategy and one that has a greater chance of success," said Lindenmayer.

Statements contained in this release that are not strictly historical are forward-looking within the meaning of the safe harbor clause of the Private Securities Litigation Reform Act of 1995. 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, demand for the company's product both domestically and abroad. The company's ability to continue to develop its market, general economic conditions, and other factors may be more fully described in the company's literature and any periodic filing with the Securities and Exchange Commission.