International Fuels News
Wednesday April 25, 2006 3:00 PM Eastern Time
International Fuel Technology Addresses Inaccuracies in First Asia's Press Release Regarding the $1,000,000 purchase Order it Placed
ST. LOUIS – April 25, 2006 – International Fuel Technology, Inc. (OTC BB: IFUE), a fuel science and research company, today announced that it is disappointed by a recent press release by First Asia concerning a $1,000,000 purchase order. IFT believes the First Asia press release was inaccurate. IFT has responded to that press release by filing a voluntary Form 8-K with the Securities and Exchange Commission setting out the accurate facts surrounding this transaction.
On March 6, 2006, IFT made a press release regarding a $1,000,000 purchase order that it received from First Asia. This purchase order was issued by First Asia pursuant to its contract entered into with IFT in March 2005, providing that First Asia would purchase an aggregate amount of additive with a value of $5,000,000 for sale in Asia over a three-year period. The $1,000,000 purchase order was part of that contract and was authorized and initialed by Mr. Anthony Stout, CEO and Chairman of its Board. IFT had then, and has now, no reason to believe Mr. Stout did not have authority to issue the purchase order. In fact, First Asia has honored previous purchase orders authorized by Mr. Stout. Only now, after more than a month after IFT’s announcement, has First Asia issued a press release challenging the issuance of the purchase order. On April 19, 2006, Mr. Stout resigned his position as CEO and as a Board member of First Asia due in part to the erroneous press release issued by First Asia on April 17th.
First Asia has, in the course of dealings with IFT, always acknowledged the effect of the binding contract with IFT by its press releases in the past and by its purchase of $500,000 worth of additive in December 2005. First Asia has never indicated in any fashion that it does not consider the contract valid and enforceable. It has attempted to modify the terms of the contract but IFT has been unwilling to do so. IFT can only surmise that the inaccurate press release was in retaliation for its refusal to change the terms of the contract.
The President of First Asia, Mr. Tim Gormley, has recently met with Mr. Jon Burst, CEO of IFT, in St Louis and negotiations are now taking place to resolve the differences between the companies. Should these negotiations prove unfruitful, IFT will take all necessary steps to enforce the contract, including the institution of arbitration proceedings with the American Arbitration Association. We believe that an award will be rendered against First Asia enforcing the purchase order as well as other obligations of First Asia which are in default.
IFT has put First Asia on notice under the contract that IFT will terminate the contract with First Asia if it continues to fail to honor its obligation to pay for the stipulated amounts of additive, which it purchased in March, as well as pay other sums owed IFT.
In the event First Asia fails to perform its other obligations under the contract requiring it to purchase stipulated amounts of additive, IFT is confident it can engage another distributor in Asia very quickly without any material adverse impact upon the Company’s business operations, financial performance or future prospects.
NOTE: Statements contained in this web site 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 that may be more fully described in the Company’s literature and any periodic filing with the Securities and Exchange Commission.
