Alternative Fuel Technologies Inc. Announces New Project With KIER

  Alternative Fuel Technologies Inc. (PINKSHEETS: AFTC) is pleased to announce that Korean Institute for Energy Research
(KIER) senior technical personnel visited us recently and informed us that
they were starting a new DME vehicle R/D project in June, 2010 and that
they wanted AFTC's fuel injection technology. Alternative Fuel
Technologies, Inc. (AFTC) announced today that they have shipped four (4)
DME feed pumps to the Korea Institute for Energy Research (KIER) for use in
development of DME fueled diesel engines. The DME feed pump transfers DME
from the fuel tank to the engine's fuel injection system at a pressure of
about 180 psi. Pumping DME requires special materials and technology that
have been developed by AFTC.

AFTC's DME Feed Pump

KIER is interested in AFTC's DME technology as a replacement for diesel fuel and views DME as an economic means by which the country may improve air quality and gain increased energy security in the future. In addition, government officials realize the potentially massive economic benefits associated with widespread adoption of DME as a fuel source.

About KIER

The Korea Institute of Energy Research is a Government entity that focuses on advanced energy Research and Developments projects with the goal of mass implementation and Commercialization of efficient, clean energy alternatives (http://www.kier.re.kr/open_content/eng/main_page.jsp).

About DME

DME is a new ultra-clean diesel fuel replacement that can be produced from abundant resources. These include natural gas, landfill methane, coal and biomass. At current oil prices, DME can be produced and distributed at less than 1/2 the cost of conventional fuel. When burned in a diesel engine, all soot emissions are eliminated and NOx emissions are lowered dramatically without the use of expensive exhaust aftertreatment devices.

About AFTC:

Alternative Fuel Technology Inc. is a research & development organization engaged in the design, development and prototype manufacturing of advanced fuel systems for use with a new alternative fuel -- dimethyl either (DME). AFTC has developed practical, low-cost fuel injection equipment for DME fueled vehicles and currently provides complete DME fuel systems for testing and research purposes in addition to retrofit systems that can be used with most diesel engines. The company's ultimate goal is series production of DME fuel systems for the global automotive market by 2011.

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