(SmallCapNewsRelease, July. 1, 2009) – Jericho, N.Y. – Alternative Fuel Technologies Inc. (OTC: AFTC)
today announced it has submitted a proposal to the US NAVY SBIR to
develop an innovative advanced propulsion solution for future combatant
craft with breakthrough technology for multi-fuel engines weighing
three to five times less than conventional diesel engines of the same
horsepower.

The SBIR invitation (Topic Number NO 92-122 - NAVY)
project includes three phases totaling nearly $20,000,000.00 after full
completion of a prototype engine installed on a marine craft. AFTC
expects an answer from the US NAVY in the next 60 to 90 days.

For full news release go to http://finance.yahoo.com/news/Alternative-Fuel-Technologies-iw-1201235007.html?x=0&.v=1

Alternative
Fuel Technologies Inc. is engaged in the design, development and
prototype manufacturing of advanced fuel systems for use with a new
alternative fuel -- Dimethyl Ether (DME). AFTC has developed practical,
low-cost fuel injection equipment for DME fueled vehicles.

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