Alternative Fuel Technologies Inc. Announces Contract With Korean Customer

Alternative Fuel Technologies Inc. announce that it has secured a contract with a Korean entity to supply 4 DME fuel feed pumps for laboratory research. The pumps are scheduled for delivery in 2008.

Korea is very interested in adopting DME as a replacement for diesel fuel and views DME as an economic means by which the country may improve air quality and gain increased energy security in the future. In addition, government officials realize the potentially massive economic benefits associated with widespread adoption of DME as a fuel source.

AFTC CEO James C. McCandless stated, “This contract marks our expansion into the Asia-Pacific marketplace, a hotbed for growth in the DME industry. I am excited to ship DME fuel pumps to our Korean customer and look forward to a longstanding mutually rewarding relationship that will hopefully lead to widespread adoption of our series production DME fuel systems throughout the country.”

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.

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 either (DME). AFTC 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.