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PR Newswire
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Alternative Fuel Technologies, Inc. Awarded New Phase 1 U.S. Army Contract

REDFORD, Mich., Jan. 18 /PRNewswire-FirstCall/ -- Alternative Fuel Technology, LLC (AFT), a wholly owned subsidiary of Alternative Fuel Technologies, Inc. (Pink Sheets: AFTC) announced today that the Company has been selected for a new U.S. Army Phase 1 SBIR award entitled: "Ultra High Pressure Jet Propellant-8 (JP-8) Fuel Injection System."

"This latest contract was awarded to the Company because of our extensive experience with this type of fuel injection system," said James McCandless, Chief Executive Officer of Alternative Fuel Technologies, Inc. "It was awarded to us under the DoD's SBIR program, which funds early stage research and development projects and small technology companies. The SBIR program was funded at approximately $1.2 billion in FY2009, and is part of a larger, federal SBIR program, which is administered by 12 federal agencies and receives more than $2 billion in funding."

Key objectives of this contract are the design, development and demonstration of an intensified, lube oil actuated common rail injection system capable of producing peak injection pressures of more than 40,000 psi (2800 bar). The system must also be readily adaptable to Army engines. A key design feature of this concept will be the use of AFT's advanced high pressure Dimethyl Ether (DME) injection pump modified to pump engine lube oil to drive the new injector.

AFT is also engaged in several other advanced fuel system projects for the U.S. Army including a Phase 2 contract valued at more than $700,000 (final award being negotiated) for the redesign of a commercial diesel common rail pump to lower wear to acceptable levels.

The Army uses JP-8 jet fuel for all of its equipment from helicopters to diesel powered trucks and generators. JP-8 presents durability and reliability problems for many types of commercial fuel injection systems.

As part of its SBIR program, the DoD issues an SBIR solicitation three times a year, describing its R&D needs and inviting R&D proposals from small companies -- firms organized for profit with 500 or fewer employees, including all affiliated firms. Companies apply first for a six-month to nine-month Phase 1 award of $70,000 to $100,000 to test the scientific, technical, and commercial merit and feasibility of a particular concept. If Phase 1 proves successful, the company may be invited to apply for a two-year Phase 2 award of $500,000 to $750,000 to further develop the concept, usually to the prototype stage.

The Company is uniquely qualified for this project, as Mr. McCandless was a pioneer in this type of diesel fuel injection system.

About Alternative Fuel Technologies, Inc.

Alternative Fuel Technology Inc. is a research & development organization engaged in the design, development and prototype manufacturing of advanced fuel systems for use with a new alternative fuel -- dimethyl ether (DME). The Company has developed practical, low-cost fuel injection equipment for DME fueled vehicles and currently provides complete DME fuel systems for testing and research purposes in addition to retrofit systems that can be used with most diesel engines. The Company's ultimate goal is series production of DME fuel systems for the global automotive market by 2011. For more information, visit http://www.altfueltechnology.com/

About DME:

DME is a new ultra-clean diesel fuel replacement that can be produced from abundant resources. These include natural gas, landfill methane, coal and biomass. At current oil prices, DME can be produced and distributed at less than 1/2 the cost of conventional fuel. When burned in a diesel engine, all soot emissions are eliminated and NOx emissions are lowered dramatically without the use of expensive exhaust aftertreatment devices.

Safe Harbor Statement: Statements contained in this release, which are not historical facts, including statements about plans and expectations regarding business areas and opportunities, acceptance of new or existing businesses, capital resources and future business or financial results are "forward-looking" statements. You should not place undue reliance on these forward-looking statements. Such forward-looking statements are subject to risks and uncertainties, including, but not limited to, customer acceptance of our products, our ability to raise capital to fund our operations, our ability to develop and protect proprietary technology, government regulation, competition in our industry, general economic conditions and other risk factors which could cause actual results to differ materially from those projected or implied in the forward-looking statements. Although we believe the expectations reflected in the forward-looking statements are reasonable, they relate only to events as of the date on which the statements are made, and our future results, levels of activity, performance or achievements may not meet these expectations. We do not intend to update any of the forward-looking statements after the date of this press release to conform these statements to actual results or to changes in our expectations, except as required by law.

CONTACT: intellibridgeIR 949-981-5062 aftc@intellibridgeir.com

Alternative Fuel Technologies, Inc.

CONTACT: intellibridgeIR, +1-949-981-5062, aftc@intellibridgeir.com, for
Alternative Fuel Technologies, Inc.

Web Site: http://www.altfueltechnology.com/

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