Fuel Tech Announces First FUEL CHEM(R) Demonstration in the People's Republic of...

Fuel Tech Announces First FUEL CHEM(R) Demonstration in the People's Republic of China

BATAVIA, Ill.--(Business Wire)--Fuel Tech, Inc. (Nasdaq: FTEK), a world leader in advanced
engineering solutions for the optimization of combustion systems in
utility and industrial applications, today announced the award of the
first FUEL CHEM(R) demonstration program in the People's Republic of
China (PRC). Under terms of a previously announced teaming agreement,
Fuel Tech and ITOCHU Hong Kong Ltd., a subsidiary of ITOCHU
Corporation, will share in the financial outcome of this and any other
orders secured under this exclusive arrangement.

The demonstration, utilizing TIFI(TM) Targeted In-Furnace
Injection(TM) technology, will be conducted on a large, coal-fired
utility boiler, with chemical injection scheduled to commence next
quarter. The customized FUEL CHEM program will be designed to show a
number of operational and environmental benefits, including: fuel and
heat efficiency improvements, made possible by cleaner heat transfer
surfaces; enhanced fuel options, which will reduce overall fuel costs
by enabling the plant to burn a broader spectrum of local and imported
coals; and reductions in toxic air emissions and in the rate of carbon
dioxide (CO2) production.

John F. Norris Jr., President and Chief Executive Officer,
commented, "The successful penetration of the vast Chinese market with
TIFI technology has been a goal of utmost importance and this
demonstration is a great start to the year. Working with ITOCHU, we
have identified an attractive candidate plant for demonstrating our
unique capabilities, which should enable our client to achieve energy
efficiency gains, lessen air pollutant and CO2 emissions, and reduce
operating and maintenance costs."

Mr. Norris concluded, "The PRC continues to benefit from a booming
economy, one that will remain heavily reliant on coal as a principal
energy source. With the world's largest fleet of coal-fired power
plants, China offers a very large market for our technology and we
intend to tap this market by continuing to work closely with ITOCHU,
which is in advanced discussions with a number of other plants."

About Fuel Tech

Fuel Tech is a leading technology company engaged in the worldwide
development, commercialization and application of state-of-the-art
proprietary technologies for air pollution control, process
optimization, and advanced engineering services. These technologies
enable customers to produce both energy and processed materials in a
cost-effective and environmentally sustainable manner.

The Company's nitrogen oxide (NOx) reduction technologies include
the NOxOUT(R), NOxOUT CASCADE(R), NOxOUT ULTRA(R), Rich Reagent
Injection (RRI) and NOxOUT-SCR(R) processes. These technologies have
established Fuel Tech as a leader in post-combustion NOx control
systems, with installations on over 450 units worldwide, where coal,
municipal waste, biomass, and other fuels are utilized.

The Company's FUEL CHEM(R) technology revolves around the unique
application of chemicals to improve the efficiency, reliability, fuel
flexibility and environmental status of combustion units by
controlling slagging, fouling, corrosion, opacity and acid plume, as
well as the formation of sulfur trioxide, ammonium bisulfate,
particulate matter (PM2.5), carbon dioxide and NOx. This technology,
in the form of a customizable FUEL CHEM program, is being applied to
90 combustion units burning a wide variety of fuels including coal,
heavy oil, biomass, and municipal waste. A breakdown of the nature of
these customer units is posted on the Company's website.

Many of Fuel Tech's products and services rely heavily on the
Company's exceptional Computational Fluid Dynamics modeling
capabilities, which are enhanced by internally developed, high-end
visualization software. These capabilities, coupled with the Company's
innovative technologies and multi-disciplined team approach, enable
Fuel Tech to provide practical solutions to some of our customers'
most challenging problems. For more information, visit Fuel Tech's web
site at www.ftek.com.

This press release may contain statements of a forward-looking
nature regarding future events. These statements are only predictions
and actual events may differ materially. Please refer to documents
that Fuel Tech files from time to time with the Securities and
Exchange Commission for a discussion of certain factors that could
cause actual results to differ materially from those contained in the
forward-looking statements.

Fuel Tech, Inc.
Vincent J. Arnone
Chief Financial Officer
630-845-4500
or
Tracy H. Krumme
Vice President, Investor Relations
203-425-9830

Copyright Business Wire 2008