Alternative Fuel Technologies, Inc. Selected for Negotiation and Possible Award of Phase 2 Army Contract

REDFORD, Mich., Nov. 4, 2010 /PRNewswire/ -- Alternative Fuel Technology LLC, a wholly owned subsidiary of Alternative Fuel Technologies, Inc. (Pink Sheets: AFTC), today announced that the Company was selected for negotiation and possible award of a Phase II Small Business Innovation Research (SBIR) contract from the U.S. Army. Phase 2 contract awards are approximately $725,000.

The goal of this proposal, entitled "Ultra High Pressure Jet Propellant-8 (JP-8) Fuel Injection, will be to  demonstrate an ultra high pressure, multi cylinder intensified fuel injection system for use with jet propellant (JP-8) fuel.  Selection for the Phase 2 negotiation automatically qualifies the Company for an option award for $50,000 to continue work on the Phase 1 project for an additional 4 months.

"JP-8 fuel causes wear and premature failure with most fuel injection systems," said James McCandless, Chief Executive Officer of Alternative Fuel Technologies, Inc. "Using oil powered, intensified injectors generally eliminates this problem because many of the highly loaded parts are lubricated with oil instead of JP-8 fuel."

This marks the fourth U.S. Army SBIR contract for which the Company has been selected for negotiation and possible award. The Company has previously applied for a total of three SBIR projects from the U.S. Army and has been awarded contracts for all three.

The Department of Defense's SBIR program funds early-stage R&D projects at small technology companies -- projects which serve a DoD need and have the potential for commercialization in private sector and/or military markets. The program, funded at approximately $1.23 billion in FY 2009, is part of a larger ( > $2 billion) federal SBIR program administered by twelve federal agencies.

As part of its SBIR program, the Department of Defense issues an SBIR solicitation three times a year, describing its R&D needs and inviting proposals from small companies -- firms organized for profit with 500 or fewer employees, including all affiliated firms. Phase 2 contracts of approximately $725,000 are awarded to further develop a concept, usually to the prototype stage. Proposals are judged competitively on the basis of scientific, technical, and commercial merit.

"We believe that developing specialty fuel injection equipment for the military can improve the reliability and performance of military vehicles, and help our military complete missions more quickly and safely," said McCandless.

About Alternative Fuel Technologies, Inc.

Alternative Fuel Technologies, 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). 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. For more information, visit: http://www.altfueltechnology.com

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SOURCE Alternative Fuel Technologies, Inc.