National Press Release

WARRENVILLE, Ill., Jan. 29 /PRNewswire-FirstCall/ -- Fuel Tech, Inc. (Nasdaq: FTEK), a world leader in advanced engineering solutions for the optimization of combustion systems in utility and industrial applications, today announced receipt of multiple air pollution control contracts totaling $3.5 million. Principal among these were two orders for NOxOUT(R) Selective Non-Catalytic Reduction (SNCR) systems, the first by a Canadian electric utility for an existing coal-fired unit, with start-up expected later this quarter, and the second by a French customer for turnkey installation on three municipal solid waste (MSW) incinerators, with start-up scheduled to commence during the fourth quarter.

In addition to these initiatives, contracts were secured from a Korean client for modeling and related services; a British customer for physical and computational modeling of a Selective Catalytic Reduction (SCR) system; and a U.S. glass manufacturer for the Company's recently introduced "mini-SCR" system. A number of supplemental equipment orders were also received for previously announced projects, including NOxOUT ULTRA(R) systems in China.

"We are very pleased to be adding this Canadian utility to the ranks of Fuel Tech's air pollution control clients," commented John F. Norris Jr., President and Chief Executive Officer. "This announcement represents our first air pollution control project in Canada and, as such, we hope to build on this initiative where appropriate."

Mr. Norris continued, "We are also delighted to be announcing new business in France, where all municipal solid waste incinerators will be required to control NOx emissions by the end of 2009. Efforts to secure new MSW business in France and elsewhere in Europe are ongoing."

Mr. Norris concluded, "As regards the mini-SCR system, this contract represents our second such order from this customer, with discussions underway for additional applications."

About Fuel Tech

Fuel Tech is a leading technology company engaged in the worldwide development, commercialization and application of state-of-the-art proprietary technologies for air pollution control, process optimization, and advanced engineering services. These technologies enable customers to produce both energy and processed materials in a cost-effective and environmentally sustainable manner.

The Company's nitrogen oxide (NOx) reduction technologies include advanced combustion modification techniques -- such as low NOx burners and overfire air systems -- and post-combustion NOx control approaches, including NOxOUT(R) and HERT(TM) SNCR systems as well as systems that incorporate NOxOUT CASCADE(R), NOxOUT ULTRA(R), Rich Reagent Injection (RRI) and NOxOUT-SCR(R) processes. These technologies have established Fuel Tech as a leader in NOx reduction, with installations on over 550 units worldwide, where coal, fuel oil, natural gas, municipal waste, biomass, and other fuels are utilized.

The Company's FUEL CHEM(R) technology revolves around the unique application of chemicals to improve the efficiency, reliability, fuel flexibility and environmental status of combustion units by controlling slagging, fouling, corrosion, opacity and acid plume, as well as the formation of sulfur trioxide, ammonium bisulfate, particulate matter (PM2.5), carbon dioxide and NOx. This technology, in the form of a customizable FUEL CHEM program, is being applied to over 95 combustion units burning a wide variety of fuels including coal, heavy oil, biomass, and municipal waste. A breakdown of the nature of these customer units is posted on the Company's website.

Fuel Tech also provides a range of combustion optimization services, including airflow testing, coal flow testing and boiler tuning, as well as services to help optimize selective catalytic reduction system performance, including catalyst management services and ammonia injection grid tuning. In addition, flow corrective devices and physical and computational modeling services are available to optimize flue gas distribution and mixing in both power plant and industrial applications.

Many of Fuel Tech's products and services rely heavily on the Company's exceptional Computational Fluid Dynamics modeling capabilities, which are enhanced by internally developed, high-end visualization software. These capabilities, coupled with the Company's innovative technologies and multi-disciplined team approach, enable Fuel Tech to provide practical solutions to some of our customers' most challenging problems. For more information, visit Fuel Tech's web site at www.ftek.com.

This press release may contain statements of a forward-looking nature regarding future events. These statements are only predictions and actual events may differ materially. Please refer to documents that Fuel Tech files from time to time with the Securities and Exchange Commission for a discussion of certain factors that could cause actual results to differ materially from those contained in the forward-looking statements.

    CONTACT:  John P. Graham
              Chief Financial Officer
              (630) 845-4500

              Tracy H. Krumme
              Vice President, Investor Relations
              (203) 425-9830

SOURCE Fuel Tech, Inc.