Ionic Fuel Technology, Inc. Announces Fiscal Year 2001 Third Quarter And Nine Months Results

ARCHIVED 2002–2016: Originally distributed via the eWire press wire service. Preserved as historical record.

Ionic Fuel Technology, Inc. Announces Fiscal Year 2001 Third Quarter

And Nine Months Results

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TO BUSINESS AND ENERGY EDITORS:

Ionic Fuel Technology, Inc. Announces Fiscal Year 2001 Third Quarter

And Nine Months Results

Quarter and Nine Month Revenues for Fiscal Year 2001 Register Increase Over

Comparable Periods of Fiscal Year 2000

EUROPE, ENGLAND, ESSEX, May. 22 -/E-Wire/-- Ionic Fuel Technology, Inc. (OTC Bulletin Board: IFTI) today announced that revenues in the third fiscal quarter

ending March 31, 2001 were $237,559 as compared to $217,235 for the same period last

year. The gross profit, defined as revenues less cost of revenues, for the third

fiscal quarter of 2001 was $44,663 compared to a negative gross profit of ($18,723)

reported in the third fiscal quarter last year. The net loss for the third fiscal

quarter was $289,001, or $.01 per share, compared to the net loss in third fiscal

quarter last year of $262,317, or $.02 per share.

The improvement in both revenues and gross margin during the third fiscal quarter of 2001 was lead by the Company's Engineering Services Division, which contributed 63 percent of total revenues for the quarter. Cost of revenues also showed improvement, decreasing to $192,896 in the third fiscal quarter of 2001 from $235,958 in the same period last fiscal year. This was offset by increased sales and marketing expenses during the quarter ended March 31, 2001 as the Company invested resources to demonstrate its IFT technology to Dalkia, a worldwide leader in energy and heating systems management, and to develop and install a synthetic conveyor system for an internal bake oven for the can manufacturing industry.

Revenues for the first nine months of fiscal year 2001 were $786,113 versus $509,032 for the nine months ended March 31, 2000, an increase of 54 percent. Gross profit increased to $130,913 during the first nine months of fiscal year 2001 compared to a negative gross profit of ($78,726) for the same period of fiscal year 2000. The net loss for the nine months ended March 31, 2001 was $747,273, or $.04 per share, compared to a net loss of $799,966, or $.07 per share, for the first nine months of fiscal year 2000.

Third Quarter Operational Activities During the third fiscal quarter of 2001, the Company successfully completed trial demonstrations of both the IFT technology and its Management Information System (MIS) to Dalkia that culminated in an agreement between the Company and Dalkia. The agreement provides the Company significant opportunity to install and rent its patented "IFT Systems" and sell its MIS programs at selected sites. The Company is currently installing IFT Systems and MIS programs at five sites in France and is in the process of identifying additional sites.

Also, during the quarter the Company installed the first conveyor system for a leading European can company which provided significant energy and environmental benefits over the system it replaced. The Company expects further orders following the end of this summer's canning season.

In addition, the Company received orders for rental of the IFT System from Dow Chemical; Citrique, a Belgian chemical company; Janssen Pharmaceutical NV, a division of Johnson & Johnson; and completed installation at the Ford Motor Company plant located in Saarlouis, France. Revenues from these rental orders and installation will be reflected in next quarter's results.

Three Months Ended Nine Months Ended March 31, March 31, 2001 2000 2001 2000 (Unaudited) (Unaudited) (Unaudited) (Unaudited)

Revenues $237,559 $217,235 $786,113 $509,032 Net Loss $(289,001) $(262,317) $(747,273) $(799,966) Earnings Per Share $(0.01) $(0.02) $(0.04) $(0.07)

Weighted Average Number Shares Outstanding 22,518,796 14,361,421 20,873,581 12,301,871

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Liquidity and Sources of Capital The Company raised $600,000 of additional funds in the form of a 6 percent debenture maturing in 2004 with detachable warrants. The proceeds from the debentures will be used for working capital. The Company believes funds from this financing combined with expected positive cash flows from operations during the next twelve months will be sufficient to meet the Company's capital requirements, although no assurances can be given.

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.

Ionic Fuel Technology, Inc.

http://www.ionicfuel.co.uk

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