Syntroleum Awarded $2 Million By DOD to Further Develop Flexible GTL Production Systems and Single Battlefield Fuel

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    TULSA, Okla., Oct. 21 /PRNewswire-FirstCall/ -- Syntroleum Corporation
 (Nasdaq:   SYNM) announced today that Congress has appropriated $2.0 million for
 Phase II development of Syntroleum's proposed Flexible JP-8 single battlefield
 fuel (SBF) Pilot Plant Program.  The amount was approved for advanced concept
 technology development under fiscal year 2004 U.S. Department of Defense
 appropriations legislation, which was signed into Public Law 108-87.  This is
 the second such appropriation for developing the SBF concept and follows the
 $3.5 million DOD appropriation that Syntroleum was awarded in fiscal year 2002
 for Phase I development.  Phase I will be completed by October 31, 2003.
 Phase I included design of a marine-based fuel-production plant and
 characterization of gas-to-liquids (GTL) synthetic JP-8/JP-5 fuels for
 military diesel, turbine and fuel cell applications.
     This follow-on Phase II effort will include expanded engineering and
 design work for SBF production systems for sea and land; and further SBF
 characterization and demonstration work for all branches of the military.  The
 specific work items are now under discussion and will be confirmed in a
 contract that Syntroleum expects to soon finalize with the U.S. Tank,
 Automotive and Armaments Command (TACOM).
     The appropriation was secured through the efforts of U.S. Senator James M.
 Inhofe (R-OK) along with U.S. Congressmen Earnest Istook, Jr. (R-OK 5th
 district), Tom Cole (R-OK 4th district), John Sullivan (R-OK 1st district) and
 Frank D. Lucas (R-OK 3rd district).
     "Syntroleum's gas-to-liquids barge project holds great promise for
 alternative fuel production in a way that has both civilian and military
 applications," said U.S. Senator Inhofe, who is a member of the Senate Armed
 Services Committee and Chairman of the Senate Environment and Public Works
 Committee.  "The benefits of this kind of technology to our country are
 substantial and I am confident that these funds will aid in the further
 development of this process for the benefit of our nation."
     "This is great news for Syntroleum and for Northeastern Oklahoma," stated
 Congressman Sullivan.  "Not only will these funds help our soldiers in the
 battlefield, but they translate into jobs and development for our economy."
     "I am proud to have worked with the delegation in ensuring that this
 funding was included in the Department of Defense appropriations bill," stated
 Congressman Cole, who is a member of the House Appropriations Committee.
 "These funds will provide the military a tool which it can use to explore new
 and inventive fuel technologies."
     "The work that was conducted in Phase I of this program suggests that
 synthetic fuels produced in or near theater of operations could offer
 substantial benefits to our military," stated Kenneth Agee, Chairman and Chief
 Executive Officer for Syntroleum.  "Implementation of a single battlefield
 fuel made from natural gas could provide economic and logistical advantages to
 our military in times of conflict as well as in normal peacetime operations."
     Syntroleum Corporation owns a proprietary GTL process for converting
 natural gas into synthetic liquid hydrocarbons.  The company plans to use its
 technology, as well as other third party gas processing technologies, to
 develop and participate in gas monetization projects in a number of global
 locations.
 
     This document includes forward-looking statements as well as historical
 information.  Forward-looking statements include, but are not limited to,
 statements relating to the testing, certification, characteristics and use of
 synthetic fuels and alternative fuels, the Syntroleum Process and related
 technologies and products.  When used in this document, the words
 "anticipate," "believe," "estimate," "expect," "intent," "may," "project,"
 "plan" "should," and similar expressions are intended to be among the
 statements that identify forward-looking statements.  Although Syntroleum
 believes that its expectations reflected in these forward-looking statements
 are reasonable, such statements involve risks and uncertainties and no
 assurance can be given that actual results will be consistent with these
 forward-looking statements.  Important factors that could cause actual results
 to differ from these forward-looking statements include the potential that
 commercial-scale GTL plants will not achieve the same results as those
 demonstrated on a laboratory or pilot basis or that such plants will
 experience technological and mechanical problems, the potential that
 improvements to the Syntroleum Process currently under development may not be
 successful, the impact on plant economics of operating conditions (including
 energy prices), construction risks, the ability to implement corporate
 strategies, competition, intellectual property risks, Syntroleum's ability to
 obtain financing and other risks described in the company's filings with the
 Securities and Exchange Commission.
     (R) "Syntroleum" is registered as a trademark and service mark in the U.S.
 Patent and Trademark Office.
 
 

SOURCE  Syntroleum Corporation