IFT and Leading Coconut Oil Producer CIIF Will Develop Biofuels for Philippines

. LOUIS--June 4, 2006--International Fuel Technology Inc. (OTCBB: IFUE) and CIIF Oil Mills Group of the Philippines, the world's largest coconut producer, have begun a research and development program to expand the use of coconut oil in biofuels blended with diesel fuel.
CIIF Oil Mills Group accounts for more than 40% of about 1.3 million metric tons of coconut oil produced annually in the Philippines, the world's largest coconut exporting country and number-two grower to Indonesia. International Fuel Technology's (IFT) DiesoLIFT(TM) has demonstrated average fuel economy improvements of 7%, reduced emissions and improved performance in laboratory tests and field trials in diesel-fueled rail, over-the-road and stationary power generation applications in the U.S., Asia, South Africa and Europe.
"Based on careful study of IFT's technology, test data and commercial results in the Philippines and elsewhere, there is no question in our minds that this could be the fuel economy technology of the future," said Danilo Coronacion, president and chief executive officer of CIIF Oil Mills Group. "It is unique, affordable and very effective. Our joint research and development program has the potential to develop a new Asia-wide application for coconut extract."
The administration of Philippine President Gloria Macapagal-Arroyo has set an Energy Independence Agenda aimed at attaining 60% energy self-sufficiency by year 2010, and has mandated the use of 1% coconut-biodiesel in all government diesel-fueled vehicles. Biofuels currently account for an insignificant percentage of the more than 7 billion liters of diesel fuel ($5 billion market) consumed annually in the Philippines.
IFT Technology
"Although Rudolf Diesel used peanut oil in 1900 to fuel his engine and win the Grand Prize at the Paris World Fair, broader use of biofuels has faced technological, economic and performance hurdles," said Sergio Trindade, IFT's chief of science and technology. "Building on the ability of IFT's technology to enhance the combustion characteristics of all biofuel blends, we look forward to working with CIIF to combine our science with the unique properties of coconut oil to bring expanded, less expensive, cleaner energy supply to the Philippines and other parts of Asia."
International Fuel Technology is a fuel performance enhancement company focused on providing its technology to large, industrial consumers of liquid hydrocarbon-based fuels. Its family of patent-pending products uses surfactant technology to lower the fuel's overall surface tension and act as a detergent in the fuel delivery system, significantly increasing fuel efficiency and reducing harmful emissions.