Testing of International Fuel Technology's Fuel Formulation by Southwest Research Institute Shows Reductions in Key Emissions Without Loss of Power.

Business Editors

ST. LOUIS--(BUSINESS WIRE)--July 25, 2001

International Fuel Technology, Inc.(IFT)(OTC BB:IFUE) today released a summary of results from recently completed testing at Southwest Research Institute (SwRI) for diesel/ethanol and diesel/water fuel blends using IFT's proprietary additive formulation. Both fuel blends evidenced no loss of either horsepower or torque over a transient test cycle, and showed meaningful reductions in nitrogen oxides (NOx) and particulate matter(PM).

IFT tested two specific fuel blends using EPA diesel No. 2 with a 15% hydrous ethanol content and a 9% water content. The IFT additive formulation was added to the fuel blends to create a stable emulsification and then run through multiple cycles of a transient test program. Testing was performed under the Code of Federal Regulations Title 40 requirements for heavy-duty diesel engines using a transient cycle program. The engine used for all the testing was a 1999 Cummins N14-370E+, which had been operated for over 1,000 hours over the Cummins durability cycle at SwRI.

Ian Williamson, Director of Technical Operations for IFT, stated that the results achieved by the Company's additive formulation showed it is possible to blend diesel with both ethanol and water in a stable emulsification without experiencing any appreciable loss of power. "With the known emission reductions resulting from blending ethanol or water with diesel fuel, especially for NOx and PM, our additive formulation may bring the goals of lower emissions and economic feasibility closer to reality," stated Williamson.

"We deliberately wanted to test an engine that represents some of the newest in design technologies for emissions reduction and operating efficiency," said William Lindenmayer, President and COO. "While we felt this was an extremely clean engine, the results we achieved exceeded our expectations and signaled to us the market for our technology is not confined to just older, less efficient engines."

The testing conducted by SwRI is the first stage of a testing program that is expected to be completed by the end of the third quarter this year. IFT is performing transient testing in line with the required protocol of the Air Resources Board of California (CARB) under the Interim Procedure for Verification of Emission Reductions for Alternative Diesel Fuels. Both the 15% ethanol and 9% water blends qualify as alternative diesel fuels under the CARB program. The second stage of IFT's program at SwRI will include similar testing to that done on the Cummins engine, but instead using a 1991 Detroit Diesel Series 60 engine which is the CARB reference engine required for the Interim Procedure for Verification of Emissions Reductions.

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, the company's ability to obtain financing adequate to fund its operations, the company's ability to generate revenues, the company's ability to develop a market for its products and other factors more fully described in the Company's literature and its filings with the Securities and Exchange Commission.