KFx Reports 2000 Results

Apr 17, 2001, 01:00 ET from KFx Inc.

    DENVER, April 17 /PRNewswire/ -- KFx Inc. (Amex:   KFX) today reported
 results for 2000.  The 2000 consolidated net loss of $12,290,000 ($.49 per
 share) compares to a 1999 net loss of $12,730,000 ($.53 per share).  The 2000
 loss includes $5,567,000 of non-cash charges, principally for depreciation and
 amortization and debenture premium accretion and $1,294,000 of interest
 expense.
     Despite difficulties, Pegasus posted revenues of $1,895,000, an increase
 of 23% over 1999.  During 2000, Pegasus suffered from weak order volume
 principally due to a patent infringement lawsuit filed by a competitor.
 Additionally, there was confusion in the marketplace about the manner of
 compliance with certain EPA regulations caused by legal challenges to EPA's
 authority.
     A settlement of the patent infringement lawsuit was announced late last
 week.  The parties are exploring possible business combinations and other
 opportunities.  The confusion over the EPA initiatives has been resolved by
 various court actions and the power generation industry is resuming efforts to
 determine cost effective compliance.
     "The road is now clear for Pegasus to close major new orders and to begin
 to yield returns to KFx," said Ted Venners, KFx Chairman & CEO.  "I am very
 confident that our new Pegasus CEO, Gary Nicholson, will beat our
 expectations," Venners added.
     At the end of 2000, K-Fuel LLC successfully demonstrated an improved
 K-Fuel production process that is expected to have lower capital and operating
 costs than previous designs.
     "Recently we have been receiving requests for K-Fuel product," said
 Venners.  "KFx is working diligently with Kennecott Energy and others to
 develop plans to meet these requests," Venners added.
     KFx focuses on providing total solutions for the power industry through
 its patented K-Fuel(R) clean fuel production process technology and Pegasus'
 neural network power generating station optimization products and services,
 thereby enhancing the operational efficiency of power production while
 preserving the environment.  More information about KFx and Pegasus may be
 found on the Company's website -- www.kfx.com.
     The discussion above contains, in addition to historical information,
 forward-looking statements that include various risks and uncertainties.  Such
 forward-looking statements include statements regarding the Company's
 expectations.  The Company's actual results may differ materially from those
 anticipated in such statements.  Factors that might cause such a difference
 include matters discussed in "Business Risk Factors" at item 1 and in
 "Management's Discussion and Analysis of Financial Condition and Results of
 Operations" at item 7 of the Company's Annual Report on Form 10-K for the year
 ended December 31, 2000.
 
 
                                      KFx Inc.
                         Consolidated Operating Information
                  Fourth Quarter and Year Ended December 31, 2000
 
 
     Quarter Ended December 31                         2000           1999
 
 
     Operating Revenues                              $293,806       $309,675
 
     Operating Loss                               $(2,912,875)   $(2,200,641)
 
     Net Loss                                     $(4,186,016)   $(6,455,546)
 
     Basic and Diluted Net Loss per Common Share       $(0.17)        $(0.27)
 
 
 
     Year Ended December 31                           2000            1999
 
 
     Operating Revenues                            $2,124,770     $2,850,800
 
     Operating Loss                               $(8,998,405)   $(7,477,042)
 
     Net Loss                                    $(12,290,172)  $(12,730,427)
 
     Basic and Diluted Net Loss per Common Share       $(0.49)        $(0.53)
 
 

SOURCE KFx Inc.
    DENVER, April 17 /PRNewswire/ -- KFx Inc. (Amex:   KFX) today reported
 results for 2000.  The 2000 consolidated net loss of $12,290,000 ($.49 per
 share) compares to a 1999 net loss of $12,730,000 ($.53 per share).  The 2000
 loss includes $5,567,000 of non-cash charges, principally for depreciation and
 amortization and debenture premium accretion and $1,294,000 of interest
 expense.
     Despite difficulties, Pegasus posted revenues of $1,895,000, an increase
 of 23% over 1999.  During 2000, Pegasus suffered from weak order volume
 principally due to a patent infringement lawsuit filed by a competitor.
 Additionally, there was confusion in the marketplace about the manner of
 compliance with certain EPA regulations caused by legal challenges to EPA's
 authority.
     A settlement of the patent infringement lawsuit was announced late last
 week.  The parties are exploring possible business combinations and other
 opportunities.  The confusion over the EPA initiatives has been resolved by
 various court actions and the power generation industry is resuming efforts to
 determine cost effective compliance.
     "The road is now clear for Pegasus to close major new orders and to begin
 to yield returns to KFx," said Ted Venners, KFx Chairman & CEO.  "I am very
 confident that our new Pegasus CEO, Gary Nicholson, will beat our
 expectations," Venners added.
     At the end of 2000, K-Fuel LLC successfully demonstrated an improved
 K-Fuel production process that is expected to have lower capital and operating
 costs than previous designs.
     "Recently we have been receiving requests for K-Fuel product," said
 Venners.  "KFx is working diligently with Kennecott Energy and others to
 develop plans to meet these requests," Venners added.
     KFx focuses on providing total solutions for the power industry through
 its patented K-Fuel(R) clean fuel production process technology and Pegasus'
 neural network power generating station optimization products and services,
 thereby enhancing the operational efficiency of power production while
 preserving the environment.  More information about KFx and Pegasus may be
 found on the Company's website -- www.kfx.com.
     The discussion above contains, in addition to historical information,
 forward-looking statements that include various risks and uncertainties.  Such
 forward-looking statements include statements regarding the Company's
 expectations.  The Company's actual results may differ materially from those
 anticipated in such statements.  Factors that might cause such a difference
 include matters discussed in "Business Risk Factors" at item 1 and in
 "Management's Discussion and Analysis of Financial Condition and Results of
 Operations" at item 7 of the Company's Annual Report on Form 10-K for the year
 ended December 31, 2000.
 
 
                                      KFx Inc.
                         Consolidated Operating Information
                  Fourth Quarter and Year Ended December 31, 2000
 
 
     Quarter Ended December 31                         2000           1999
 
 
     Operating Revenues                              $293,806       $309,675
 
     Operating Loss                               $(2,912,875)   $(2,200,641)
 
     Net Loss                                     $(4,186,016)   $(6,455,546)
 
     Basic and Diluted Net Loss per Common Share       $(0.17)        $(0.27)
 
 
 
     Year Ended December 31                           2000            1999
 
 
     Operating Revenues                            $2,124,770     $2,850,800
 
     Operating Loss                               $(8,998,405)   $(7,477,042)
 
     Net Loss                                    $(12,290,172)  $(12,730,427)
 
     Basic and Diluted Net Loss per Common Share       $(0.49)        $(0.53)
 
 SOURCE  KFx Inc.