ST. LOUIS, October 26, 2011 – International Fuel Technology, Inc. (IFT) (OTCBB:IFUE) announced today that it is achieving early commercial successes in the European rail industry and expects to announce sizable orders from a number of key operators.
“The recent commercial breakthroughs with European rail operators reflect the culmination of a thorough product evaluation process that began back in 2005,” said Dr. Sergio C. Trindade, IFT’s Director of Science and Technology and Nobel co-laureate. “Both laboratory and extensive, in-service field testing confirm that use of our proprietary DiesoLiFT™ 10 diesel fuel additive not only increases fuel economy by 3% to 6% on average, and reduces harmful emissions but also reduces maintenance costs for and extends the life of the engines. Customers have indicated to us that even at only a 2% improvement the product is economical for them. Moreover, reduction of both scheduled maintenance and equipment down time are proving to be a compelling cost savings.”

“Our strategy of partnering with established distributors is key to the commercial progress we have made in rail to date and the progress we expect to make going forward,” said Jonathan Burst, IFT’s CEO.

Gary Kirk, IFT’s Director of Sales and Marketing, notes that, “Our decision to join with recognized distributors in our markets of interest is already bearing fruit. These relationships have accelerated the awareness of and the flow of information about our products to the ultimate users. For example, our U.K. distribution partner Unipart Group (www.unipartrail.com ), is in discussion with numerous U.K. rail operators, many of whom we think will be buying DiesoLiFT™ 10 in commercial quantities in 2012.”

“The successful process in the U.K. has advanced our commercial activities with rail operators in other parts of Europe as well,” adds Axel Farhi, IFT’s Director of New Business Development. “Through the efforts of distribution partner Nordmann Rassmann (www.nordmann-rassmann.com ), one European rail operator is already using DiesoLiFT™ 10 commercially and at least three others, including the national rail system of an EU country, are expected to follow in 2012.”

Concludes Mr. Burst: “Based on information received from distribution partners, current market conditions and our internal analyses, we think it’s possible that IFT’s total sales could be at a $10 million annual run rate in 2012.”

Rail Test and Trial Background

Over the past six years IFT has been involved in an extensive (and successful) evaluation of DiesoLiFT™ 10. Participants included The Association of Train Operating Companies in the U.K. (ATOC); mi Technology Group; The Rail Safety and Standards Board in the U.K.; Network Rail, the owner and operator of the U.K. rail track system; LH Group Services; and world-renowned railroad consultant Interfleet Technology (Interfleet).

The testing protocol involved four years of laboratory testing on different engine and fuel types and then two years of successful field validation with an ATOC operator. (ATOC is the trade association for railroads in the U.K.) The extensive process also included consultation with rail engine OEMs and major oil companies that supply fuel to ATOC members.

The conclusions from this rigorous scrutiny in both laboratory testing and six million miles of railway field trials are consistent: use of DiesoLiFT™ 10 increases fuel economy; reduces harmful emissions; causes no harm to the fuel and engine; and reduces engine maintenance expenditures.