Fuel Tech Responds to Report

BATAVIA, Ill.—(BUSINESS WIRE)—January 7, 2008— On December 13, 2007, Merriman Curhan Ford & Co. (MCF) issued a report on Fuel Tech, Inc. (Nasdaq: FTEK) that was based on and quoted extensively from "an independent study involving a panel of industry experts." This "independent study" was performed by Panel Intelligence, LLC, a wholly owned subsidiary of MCF. The study was made available the following week and seven anonymous panelists were quoted extensively.

Fuel Tech has identified and contacted most of these panelists and a few of them (or their management) have agreed to go "on the record" with the truth about this report from MCF's Panel Intelligence. Here is what they have to say:

Two of the panelists were from Breen Energy Solutions and its subsidiary, Quinapoxet Solutions. Writing on their behalf is Mr. Ben Breen, President of Breen Energy Solutions:
  "My intentions in joining the ANTI-FOULING PANEL were to contribute
   my expertise to the technical evaluation and assessment of the
   viability/validity of processes and products involved in:
  1. Nitric Oxide emissions reduction from power plants (particularly
   SNCR technology) and
  2. Anti-slag and anti-fouling (additive technology) with-in these
   same power plant boilers.
  Since 1964, I have conducted research and development and formed
   several nationally/internationally recognized Companies operating
   successful businesses in these two fields.
  Overall, I feel I was mislead as to the nature and purpose of this
   report which seems to have focused on minimizing Fuel Tech market
   potential and on the effectiveness of their technologies.
  The market potential for the SNCR technology is measured in hundreds
   of units and hundreds of millions of dollars, far beyond what one
   of the panelists suggested as merely ten units. That suggestion
   seemed unrealistically or purposefully negative. SNCR market
   potential can be further expanded with technological advancements
   involving feed-back of operating information; such as Temperature
   and the Ammonium-bi-Sulfate probe which my Company, BES, has
   developed and currently markets.
  Similarly the comment from one panel member that maximum market
   penetration of boiler anti-slagging fuel additives has already
   occurred is absurd. I believe the current market penetration can be
   greatly expanded, especially if instrumentation to monitor real
   time firing to optimize soot-blowing and chemical injections is
   effectively deployed. Additionally, Fuel Tech Fuel Chem process
   dramatically reduces SO3 issues but could be enhanced further with
   real time SO3 feedback controls. We are actively working in both of
   those instrumentation areas.
  My Company consults and performs services in these fields and no
   better reference for the Fuel Tech technology is that we work to
   complement their technology whenever possible."

The panelist that had the most negative things to say about Fuel Tech was panelist number 6, identified in the report as a "Manager" at Westar Energy. That person was Mr. Terry Maddox and here is what Mr. Doug Sterbenz, Executive Vice President & Chief Operating Officer of Westar Energy, writes about this:
  "In the Panel Intelligence transcript, Mr. Maddox is identified as a
   "Manager" employed by Westar Energy. We believe this description
   may lead a reader to conclude that Mr. Maddox was authorized by
   Westar Energy to make the statements included in the transcript and
   that Westar Energy vouches for the accuracy and veracity of the
   statements made by Mr. Maddox. We want to be absolutely sure you
   understand this is not the case. Westar Energy did not authorize
   Mr. Maddox to participate in the Panel Intelligence panel
   discussion or to make any statements about your company or its
   products in the panel discussion, and Mr. Maddox's taking these
   actions without company authorization was a violation of company
   policy. Moreover, Westar Energy did not authorize its name to be
   included in the Panel Intelligence report.
  We also believe you should be aware that Mr. Maddox does not hold a
   position at Westar Energy that is comparable to the executive and
   officer positions held by four of the panelists who participated in
   the panel discussion. The position held by Mr. Maddox is Manager,
   Engineering at Westar Energy's Jeffrey Energy Center. He reports to
   the person responsible for day-to-day management of the plant. Mr.
   Maddox is neither a Westar Energy officer nor a member of Westar
   Energy's senior management team.
  In addition to the statements in the Panel Intelligence transcript,
   I understand that Mr. Maddox may have made additional statements to
   others that put your company's product in a negative light. Westar
   Energy in no way endorses any of the statements made by Mr. Maddox
   or any of the research that he may have claimed to conduct as
   support for any of the statements."

Fuel Tech believes you deserve to know the truth. The full letters from Mr. Breen and Mr. Sterbenz are posted on our website at www.ftek.com.


Fuel Tech, Inc.
Vincent J. Arnone, 630-845-4500
Chief Financial Officer
Tracy H. Krumme, 203-425-9830
Vice President, Investor Relations


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