AFTC Alternative Fuel Technologies Inc (PK)

Alternative Fuel Technology Inc. (PINKSHEETS: AFTC) is proud to announce the Company has successfully completed a Phase 1 SBIR (Small Business Innovation Research) project and has submitted a draft final report. This project involved accelerated testing and analysis of a high pressure fuel injection pump running on JP-8 jet fuel. The Army has a policy to use a single fuel (JP-8) for all of their "vehicles" and engine powered equipment, including turbine powered tanks, helicopters, trucks, HUMVEES, generators, etc.

AFTC test results show that the pump suffered high wear in a short period of time because of the fuel characteristics.

CEO Mr. McAndless states, " The Army is pleased with our work on this project and has invited us to make a proposal to resolve the wear problems. This proposal is valued up to $730,000."

AFTC received the following comments from the Army: "I'm writing about your Phase I Small Business Innovation Research (SBIR) contract # W56HZV09C0123, awarded 1/20/2009, under the DOD SBIR Program, Topic # A08-128, Proposal Title: JP-8 Fuel Effects on High Pressure Common Rail Pumps." The statement from the Army goes on to state, "Based on our assessment of the progress and potential of your Phase I work, you hereby are invited to submit a proposal for consideration of a possible Phase II SBIR award."

According to the Army, "Phase II proposals submitted in response to this invitation normally involve a performance period of up to 24 months, and are eligible for up to $730,000 in funding." "Your Phase II proposal will be subjected to a technical review process similar to the one that was used in selecting and awarding your Phase I proposal." "Your proposal will be reviewed for overall merit and evaluated based upon the criteria set forth in Section 4.3 of the DOD Program Solicitation (SBIR Solicitation 2008.2)." "Selections for Phase II awards are scheduled to be made 60-75 days after proposal receipt." "We plan to award Phase II contracts no later than 6 months after proposal receipt."

On July 19 AFTC submitted a detailed proposal to resolve the wear problem using technology developed for our DME fuel injection system.

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 ether (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.

Further information on Alternative Fuel Technologies Inc. is available at: http://www.altfueltechnology.com/

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