Fuel Tech Awarded Air Pollution Control Orders Totaling $2.3 Million

BATAVIA, IL (10/18/06) -- 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 several domestic and international orders for air pollution control (APC) projects totaling $2.3 million.

In the United States, a Southeastern utility alliance partner expanded the scope of previously announced APC projects at four separate plant locations. In the Midwest, a utility alliance partner placed orders for the mapping and modeling of five coal-fired boilers at three electric power plants. An order was also received from The McBurney Corporation for the installation of a Selective Non-Catalytic Reduction NOxOUT® system on a biomass cogeneration plant in the upper Midwest.

In Italy, the Company was awarded an order for the design and supply of ammonia solution storage and handling systems for four municipal solid waste (MSW) plants, which are equipped with selective catalytic reduction systems to control nitrogen oxide (NOx) emissions.

"This announcement represents a good, diverse group of APC projects," commented John F. Norris Jr., President and Chief Executive Officer. "In addition to ongoing order flow from our alliance partners, we are pleased to welcome new business from The McBurney Corporation, a prominent biomass boiler manufacturer and repeat customer with whom we are evaluating other NOx reduction projects. As regards Italy, we believe there are other European opportunities for working with existing MSW plants requiring demonstrated expertise in the area of chemical storage and handling systems."

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 the NOxOUT®, NOxOUT CASCADE®, NOxOUT ULTRA®, Rich Reagent Injection (RRI) and NOxOUT-SCR® processes. These technologies have established Fuel Tech as a leader in post-combustion NOx control systems, with installations on over 375 units worldwide, where coal, municipal waste, biomass, and other fuels are utilized.

The Company's FUEL CHEM® technology revolves around the unique application of chemicals to improve the efficiency and reliability of combustion units by controlling slagging, fouling, corrosion and opacity. This technology, in the form of a customizable FUEL CHEM program, is being applied to over 80 combustion units burning a wide variety of fuels including coal, heavy oil, biomass, and municipal waste.

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.fueltechnv.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.