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Alternative Fuel Technologies Wins $715,000 Army Grant

Redford Township-based Alternative Fuel Technology LLC, a subsidiary of Alternative Fuel Technologies Inc. (Pink Sheets: AFTC), has been awarded a $715,000 Phase 2 federal Small Business Innovation Research grant from the United States Army.

"This is the largest Army contract the company has ever been awarded," said James McCandless, CEO of Alternative Fuel Technologies Inc. "The Phase 2 project is an extension of a successful Phase 1 project in which AFT identified a significant wear problem on a commercial diesel common rail fuel injection system running on JP-8 jet fuel."

The Army uses JP-8 jet fuel in all of its diesel applications for logistics reasons. The company will redesign the commercial diesel common rail pump to lower wear to acceptable levels in this Phase 2 project. To accomplish this goal, AFT will apply materials technology and other lessons learned during the development of the Company's well known DME common rail fuel system.

"Following successful completion of Phase 2, the project may qualify for Phase 3 whereby the Company can commercialize the product and sell it to the military and commercial customers," said McCandless.

Alternative Fuel Technologies is a research and development organization engaged in the design, development and prototype manufacturing of advanced fuel systems for use with a new alternative fuel -- dimethyl ether (DME). The company 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.

More at www.altfueltechnology.com.

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