Ionic Fuel Technology, Inc. Announces Fiscal Year 2001 Second Quarter and Six Months Results

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TO BUSINESS, ENVIRONMENTAL AND ENERGY EDITORS:

Ionic Fuel Technology, Inc. Announces Fiscal Year 2001 Second Quarter and Six Months Results

Revenues Nearly Double From Comparable Periods of Fiscal Year 2000

Positive Contribution from All Revenue Activities Produces Gross Margin of 28 Percent in Fiscal Year 2001 Second Quarter

EUROPE, ENGLAND, ESSEX, Feb. 8 -/E-Wire/-- Ionic Fuel Technology, Inc. (OTC Bulletin Board: IFTI) today announced that revenues in the second fiscal quarter ending December 31, 2000 were $332,645 as compared to $167,925 for the same period last year, an increase of 98 percent. The gross profit, defined as revenues less cost of revenues, for the second fiscal quarter of 2001 was $95,002 producing a 28 percent gross margin. This compares to a gross profit of $12,083 reported in the second fiscal quarter last year. All revenue activities, IFT Sales, IFT Rentals and Engineering, made positive gross margin contributions.

The net loss for the second fiscal quarter was $203,696, or $.01 per share, compared to the net loss in second fiscal quarter last year of $195,019 or $.02 per share.

Increased revenues in the second quarter of fiscal year 2001, when compared to the same period last year, are a result the Company's entry into the Engineering Services Business which contributed 70 percent of total revenues during the second fiscal quarter. The changes in revenue mix coupled with lower service and manufacturing costs were the primary factors for the improvement in gross profit. Increased sales and marketing costs associated with the Engineering Services business in the second fiscal quarter of 2001 resulted in the net loss being essentially unchanged from the second fiscal quarter of 2000.

Mr. Anthony J. S. Garner, chairman and chief executive officer, stated, "Our entry into the Engineering Services Business is an overwhelming success. We expect this business to continue to grow and also provide synergies with the sale and rental of our IFT Systems."

Total revenues for the first six months of fiscal year 2001 were $548,554 versus $291,797 for the six months ended December 31, 1999, an increase of 88 percent. The gross profit for the first half of fiscal year 2001 was $86,250 compared to loss of $60,003 for the first half of fiscal year 2000. The net loss for the six months ended December 31, 2000, was $458,272, a net loss of $.02 per share as compared to a net loss of $537,649, or a per share loss of $.05, for the same period last year.

Forward-looking statements made in this release are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that all forward-looking statements involve risks and uncertainties including without limitation risks in technology developments, risks in product development and market acceptance of and demand for the Company's products, risks associated with foreign sales and other risks detailed in the Company's filings with the Securities and Exchange Commission.

Ionic Fuel Technology, Inc. is an environmental and combustion technology company providing environmental solutions, combustion technology and energy utilization products and services to a variety of industries worldwide. The Company provides thermal process consultancy services, "TPS" and management information systems, "MIS", in addition to designing and assembling its proprietary "IFT System" at its offices and manufacturing facility in Laindon, Essex, England. The Company's consultancy services and "IFT System" are marketed in the United Kingdom, Europe and the United States. Further information on Ionic Fuel Technology, Inc. can be found at the Company's website, http://www.ionicfuel.co.uk.

Three Months Ended Six Months Ended December 31, December 31, 2000 1999 2000 1999 (Unaudited) (Unaudited) (Unaudited) (Unaudited) Revenues $332,645 $167,925 $548,554 $291,797 Net Loss $(203,696) $(195,019) $(458,272) $(537,649) Earnings Per Share $(0.01) $(0.02) $(0.02) $(0.05) Weighted Average Number 21,261,789 11,283,239 19,889,126 11,283,239 Shares Outstanding

Ionic Fuel Technology, Inc.

Europe - Tony Garner of Ionic Fuel Technology,

011-44-1268-491409; or North America - Barry Morris of Morris Capital Markets

Communications, LLC, [REDACTED-PHONE], for Ionic Fuel Technology

http://www.ionicfuel.co.uk

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