Fuel Will Be Made Using Syntroleum's Biofining(TM) Technology

TULSA, Okla.--(BUSINESS WIRE)--July 9, 2007--Syntroleum Corporation (Nasdaq:SYNM), a leader in synthetic fuels technologies, announced today that it has signed a contract to provide synthetic jet fuel made from renewable feedstock to the U.S. Department of Defense (DOD). Syntroleum will provide a first-of-its-kind renewable fuel for evaluation by the DOD as part of a larger program aimed at long-term prospects for the domestic manufacture and supply of synthetic aviation fuels.

Under terms of the contract, Syntroleum will provide 500 gallons of ultra-clean renewable synthetic jet fuel produced entirely from fats supplied by Tyson Foods, Inc., using the company's recently announced Biofining(TM) technology. The fuel will be used for research development and performance testing in military turbine applications as part of the DOD's Assured Fuels Program, aimed at evaluating the possibility of utilizing renewable alternative jet fuel made from bio feedstocks. The U.S. Air Force has expressed its desire to source 50 percent of its fuel needs from domestic alternative sources by 2016, and plans to certify its entire fleet of aircraft for alternative fuel use by 2010.

In 2006, Syntroleum supplied 100,000 gallons of synthetic Fischer-Tropsch (FT) jet fuel to the DOD, which used the fuel in a 50/50 blend with conventional jet fuel in several test flights of a B-52 bomber. The synthetic fuel blend was used to successfully power all eight engines of the aircraft in a final test flight on December 15, 2006. Research and testing by the military on Syntroleum's FT fuels have shown superior performance characteristics compared to aviation fuels produced by refining crude oil. Particulate matter (soot) emissions have shown a reduction of up to 90 percent depending upon the turbine engine type and operating mode. The reduced soot and sulfur emissions (FT fuel is nearly sulfur-free) significantly improve overall air quality. Syntroleum believes renewable synthetic jet fuel made from its Biofining(TM) technology and renewable feedstocks will exhibit similar qualities.

"This contract with the U.S. Department of Defense is another significant milestone for Syntroleum," said Jack Holmes, CEO of Syntroleum. "When the contract is completed, we would be the first company to provide both renewable synthetic aviation fuel and FT aviation fuel to the Department of Defense for its certification and weapon system testing program. This acceptance of our alternative synthetic fuels once again validates the quality and integrity of our product, and the successful completion of this program will provide Syntroleum with an opportunity for other long-term supply contracts with the Department of Defense.

"Additionally, the potential to produce commercial quantities of these fuels using our Biofining(TM) technology in our recently announced Dynamic Fuels, LLC venture, initially utilizing fats and vegetable oils and eventually accessing the vast domestic biomass resources via Syntroleum's FT technology, provides a mechanism for diversifying our nation's energy supply and increasing domestic job growth."

Holmes added, "This announcement, directly on the heels of our agreement with Tyson Foods, Inc. to begin design and construction of Dynamic Fuels' first commercial renewable synthetic fuels plant, further strengthens and validates Syntroleum's business model. Our technology and products have been extensively tested and accepted by the U.S. government, private and academic research institutions and auto manufacturers."

About Syntroleum

Syntroleum Corporation owns the Syntroleum(R) Process for converting synthesis gas derived from biomass, coal, natural gas and other carbon-based feedstocks, and the Biofining(TM) technology for converting animal fat and vegetable oil feedstocks into synthetic liquid hydrocarbons. The Company plans to use its technology to develop and participate in synthetic and renewable fuel projects utilizing the Company's technology in a number of global locations.

http://www.syntroleum.com.

This document includes forward-looking statements as well as historical information. These forward-looking statements may include statements relating to plans to use Syntroleum's technology; commercialization of that technology; costs, timing and production of fuels plants; job creation from plants; fuel characteristics, benefits and uses; and the financial position of Tyson and Syntroleum. When used in this document, the words "anticipate," "believe," "estimate," "expect," "intend," "may," "plan," "project," "should" and similar expressions are intended to be among the statements that identify forward-looking statements. Although we believe that the expectations reflected in these forward-looking statements are reasonable, these kinds of statements involve risks and uncertainties. Actual results may not be consistent with these forward-looking statements. Important factors that could cause actual results to differ from these forward-looking statements include the potential that debt or equity financing for anticipated plants, the schedule for development, construction and operation of proposed plants may not be met, anticipated appropriation and expenditure of federal monies does not occur, commercial-scale plants do not achieve the same results as those demonstrated on a laboratory or pilot basis or that such plants experience technological and mechanical problems, the potential that improvements to the Biofining(TM) technology currently under development may not be successful, the impact on plant economics of operating conditions (including raw material prices, tax credits and energy prices), construction risks, risks associated with investments and operations in foreign countries, dependence on strategic relationships with manufacturing and engineering companies, volatility of energy prices, the ability to implement corporate strategies, including the continued availability of adequate working capital, competition, intellectual property risks, the ability to obtain financing and other risks described in each company's filings with the Securities and Exchange Commission.

(R) "Syntroleum" is registered as a trademark and service mark in the U.S. Patent and Trademark Office