Fuel Tech Acquires Intellectual Property For ~$3.01M From CARBONITE Fuel Conversion Process,

Fuel Tech, Inc.

, a world leader in advanced engineering solutions for the optimization of combustion systems and emissions control in utility and industrial applications, today announced that it has acquired the intellectual property rights and know-how associated with the CARBONITE® fuel conversion process. This process can convert coals of various ranks into value-added products that are high BTU, carbon-rich and pollutant-reduced. Total consideration for the acquisition was $3,010,000 in cash. Fuel Tech's Chairman, President and Chief Executive Officer, Douglas G. Bailey, noted, “This acquisition is a strategic step in a measured development process that will apply Fuel Tech's research and engineering resources to evolve the acquired intellectual property. We will leverage our knowledge of coal chemistries, combustion dynamics, system design and process optimization to develop and commercialize products that are cleaner during both their production and end use as compared to conventional products and their associated processes. CARBONITE-derived products can have relevance in a variety of existing industries, although we see an opportunity to develop new markets for products created using this technology. This acquisition will create new opportunities for Fuel Tech to diversify into adjacent markets with recurring revenue potential while remaining consistent with our mission of delivering innovative solutions for industries utilizing carbonaceous fuels.” Timothy J. Eibes, who previously served as Fuel Tech's Senior Vice President, Project Execution and in early 2014 assumed a lead role in this strategic acquisition, has been named Senior Vice President, Fuel Conversion, responsible for commercializing the technology. Dr. Richard A. Wolfe, developer of the CARBONITE process, has joined Fuel Tech as Vice President, Fuel Conversion Technologies. Both Mr. Eibes and Dr. Wolfe will report to Mr. Bailey.