Update from International Fuel Technology, Inc., the World Leader in Fuel Efficiency Additives for the Rail Industry

ST. LOUIS--(BUSINESS WIRE)--International Fuel Technology, Inc. (IFT) (OTCBB: IFUE), which began serious commercialization efforts for its breakthrough DiesoLiFT^TM 10 diesel engine fuel additive early last year, is pleased to report that now over 20 rail operators around the world are either buying, testing or planning field testing of the product.

“We have passed the tipping point of credibility with DiesoLiFT^TM 10,” said Gary Kirk, IFT’s Director of Sales and Marketing. “The marketplace now recognizes that we have a unique technology that truly performs as advertised. DiesoLiFT^TM 10 will improve fuel efficiency in diesel engine powered trains. We expect our worldwide sales to the rail industry from this product to be at a $5 million run rate by year-end.”

The rapid commercial success that IFT is now realizing in the rail industry is built on many years of worldwide independent laboratory and field testing that have consistently demonstrated fuel efficiency improvements of 3% to 6% (on average) and associated cost and environmental benefits resulting from use of our formulation. No diesel fuel additive now on the rail market can make and support these claims.

Most recently, IFT completed four rounds of testing at mi Technology (www.ltc.ltd.uk), a prominent independent test facility in the U.K. This program was coordinated and supervised by Interfleet Technology Ltd (www.interfleet-technology.com), a worldwide rail industry consultancy services group. In one test against four competing additives in a B-20 bio-diesel fuel blend, DiesoLiFT^TM 10 was the only additive that demonstrated fuel economy improvement as well as recovery of the lost fuel economy that results from the use of bio-diesel fuel.

IFT’s success in the railway industry is a testament to its international distribution network that includes such highly-regarded partners as Unipart (http://www.unipart.co.uk) (U.K. and Australia), Nordmann Rassmann (http://www.nordmann-rassmann.com) (Central and Eastern Europe) and Logerail (http://www.logerail.com/) (Africa and the Middle East). These relationships have allowed IFT to leverage its resources and capitalize on the credibility of its partners and their ability to call on a large number of prospective customers in each of their respective markets.

Following are key IFT developments, activities and prospects in the worldwide rail industry. Note: Many operators elect to start the field validation process in the spring to avoid harsh winter weather conditions and winter fuel blends.

Europe:

• IFT has been working with most of the passenger rail operators in the U.K. One such operator, East Midlands, a division of Stagecoach Group (http://www.stagecoach.com/) is already using the company’s product in its light rail division and will soon begin field validation processes in their other two rail divisions.
• More than ten other passenger and freight operators in the U.K. are expected to commence field validation programs beginning in Q2/Q3 2012.
• Unipart, IFT’s distribution partner, has already made a substantial investment on sales and marketing and has an extensive sales force out in the field calling on prospective customers in the U.K. and Ireland. Internally, they are projecting significant revenues of DiesoLiFT^TM 10 to passenger and freight rail operators in 2012.
• Belgian National Rail System - SNCB (http://www.b-rail.be/main/): as signed a memorandum of understanding and together with IFT, has designed a comprehensive test and field validation program that will commence in Q2 2012.
• Regiotrans (Romania) (http://www.regiotrans.ro/index.php): has completed Phase field I testing and the final phase field validation process is expected to be completed in Q2/Q3 2012.
• GFR (Romania) (http://www.gfr.ro/stiri): freight rail operator is expected to sign a memorandum of understanding with IFT and will commence a field validation process in Q2 2012.
• Servtrans (Romania) (http://www.sertrans.com.tr/webb/index.html): field validation process expected to commence in Q2 2012.
• PKP LHS (Poland) (http://www.lhs.com.pl/l/pl/ofirmie): has completed Phase I laboratory testing with the final field validation phase to be completed in Q2/Q3 2012.
• CD (Czech Republic) (http://www.cd.cz/default.htm): field validation process expected to commence in Q2 2012.
• Ongoing discussions in Netherlands, France, Spain and Germany should translate into field validation processes in each of those markets in 2012.

Africa:

• Logerail, a major supplier/distributor to the rail industry in Africa and the Middle East, is our latest distributor addition.
• CFCO, a rail operator in The Republic of Congo’s, is scheduled to begin field testing in 2012.

United States:

• Quality Oil & Gas of Rockingham, North Carolina, has been appointed as a distributor
• IFT has completed cell test work and a field trial and is in discussions with a Tier I and a Tier II rail operator.

Brazil:

• VALE: IFT has completed a cell test at VALE facilities and is now in the process of negotiating a field validation process with VALE in 2012.

South Pacific:

• Distribution partner Unipart Australia is in advanced discussions with several Tier I operators in Australia where it recently announced that in conjunction with their joint venture partner, UGL Limited, it has been awarded a major contract for the provision of fleet maintenance and logistics to RailCorp.
• IFT is also in discussions with a major rail operator in New Zealand.

IFT is also in discussions with rail operators in India. Clearly, the success that IFT is having in Europe has and is opening eyes and doors all over the world. In an industry where even a 1% reduction in fuel consumption can result in millions of dollars of fuel cost savings, IFT expects its DiesoLiFT^TM 10 fuel additive formulation to continue making major commercial advances in the rail industry.

About International Fuel Technology

IFT is a fuel performance enhancement company focused on providing its technology to large, industrial consumers of diesel fuel and bio-diesel fuel blends in the rail, stationary power generation and road transport industries.

IFT has two primary product lines, DiesoLiFT^TM 10 and the PerfoLiFT^TM BD-Series.

DiesoLiFT^TM 10 is IFT’s proprietary fuel additive formulation for use with diesel fuel and bio-diesel fuel blends. The product has been scientifically proven to provide a significant improvement in fuel economy and a reduction in harmful emissions. In addition, DiesoLiFT^TM 10 increases fuel lubricity, provides detergency benefits and co-solves normal amounts of free water, which collectively reduce maintenance costs for the end user. The product is easy to use, only splash blending is needed, and its use has been proven to have no effect on fuel composition, make-up or standard specification.

The PerfoLiFT^TM BD-Series is a series of fuel additive formulations specifically developed to provide superior oxidation stability and deposit formation control to bio-diesel and bio-diesel fuel blends.

Safe Harbor Statement

Some statements contained in this release may be forward-looking within the meaning of the safe harbor clause of the Private Securities Litigation Reform Act of 1995 including, but not limited to, statements as to commercialization of the Company's products and business development activities. Editors and investors are cautioned that such forward-looking statements involve risks and uncertainties that may cause the Company's actual results to differ materially from such forward-looking statements. These risks and uncertainties include, but are not limited to, the Company's ability to generate revenues and other factors as described in the Company's literature and filings with the Securities and Exchange Commission.

Further information on DiesoLiFT™ and the PerfoLiFT^TM BD-Series may be found at IFT’s website at: www.internationalfuel.com.