SOURCE: Alternative Fuel Technologies

June 15, 2009 16:36 ET

Alternative Fuel Technologies Inc. Announces Test Project With US Army

REDFORD, MI--(Marketwire - June 15, 2009) - Alternative Fuel Technologies Inc. (PINKSHEETS: AFTC) is pleased to announce that it has received a Phase 1 SBIR1 from the United States Army to assess the acceptability of running jet fuel (JP-8) in a very high pressure (30,000 psi) diesel fuel injection system. The project and option involve durability testing of a high pressure fuel system for 500 hrs and assessing the wear of critical parts. Once assessed, a Phase 2 proposal will be submitted to redesign the pump to reduce wear and build and test a prototype.

Phase 1 + Option (Phase 2 proposal) is valued at $120,000. The durability test is now running and will be completed inside of 3 weeks. Phase 2 is valued at $500,000. AFTC's proven DME pump "low wear" technology will be incorporated into the phase 2 design -- if the Army proceeds, which the Company believes is likely.

AFTC CEO James C. McCandless stated, "This contract is significant for Alternative Fuel Technologies as it legitimizes the technology of our product as well as the capacity to implement such technology. AFTC is striving to become the simple solution for Alternative Fuel Technologies and this is a step in the right direction."

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 NO emissions are lowered dramatically without the use of expensive exhaust after treatment devices.

About AFTC:

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.

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.

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