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Press Room | Press Release

U.S. Department of Defense Completes Successful B-52 Test Flight Using Syntroleum's Fischer-Tropsch Fuel

TULSA, Okla.--(BUSINESS WIRE)--Sept. 19, 2006--Syntroleum (Nasdaq:SYNM), a leader in Fischer-Tropsch (FT) technology, announced today that its ultra-clean jet fuel has been successfully tested in a United States Air Force B-52 Stratofortress Bomber aircraft. The plane lifted off from Edwards Air Force Base, Calif., with a 50/50 blend of FT and traditional JP-8 jet fuel which was burned in two of the eight engines on the plane. This marks the first time that FT jet fuel has been tested in a military flight demo, and is the first of several planned test flights. This landmark event is a result of more than four years of successful research and development efforts with the U.S. Department of Defense (DOD), focused on producing a high performance alternative fuel for military applications.

"The program culminating in the test flight today is the first step in opening up new horizons for sourcing fuel for military purposes," said Bill Harrison, a fuels expert with the Air Force Research Laboratory at Wright-Patterson Air Force Base in Ohio.

The fuel was produced at Syntroleum's FT demonstration facility near Tulsa, Okla. where it has produced over 400,000 gallons of ultra clean products. This flight test is part of the DOD's Assured Fuel Initiative, an effort to develop secure domestic sources for the military's energy needs. The Pentagon hopes to reduce its use of crude oil and foreign producers and get about half of its aviation fuel from alternative sources by 2016.

"This historic flight demonstrates that our fuel can meet the stringent fuel requirements of the DOD and we believe that this successful test can provide the military with the necessary data to validate the quality and integrity of our product," said Jack Holmes, president and CEO of Syntroleum. "This test is a significant milestone for Syntroleum and is a result of more than four years of research and development efforts with the DOD focused specifically on producing high performance alternative fuel for military applications. The acceptance of our FT fuels further validates the quality and integrity of our product and we believe the successful completion of this test provides Syntroleum with an opportunity for additional long-term contracts with the military."

Syntroleum's jet fuel has shown superior performance characteristics compared to traditional aviation fuels. Prior testing by the military on the company's FT fuels have shown a reduction in particulate matter and soot emissions of greater than 90 percent depending upon the turbine engine type compared to aviation fuels produced by refining crude oil. The reduced particulate matter and soot emissions significantly improve engine efficiency, performance and overall air quality. In addition to the company's work with the DOD, Syntroleum's technology and FT products have been successfully tested in several government programs through the U.S. Department of Energy's ultra clean fuels program and with academic research institutions and auto manufacturers. In fact, one of the shuttle buses used today at Edwards Air Force Base is running Syntroleum's diesel fuel as part of an ongoing road test.

The jet fuel that was used today was produced from natural gas using Syntroleum's proprietary FT process, but the company believes the fuel can also be produced from the vast domestic coal resources. The potential to produce these fuels from domestic resources and the opportunity for long-term supply agreements with the DOD provides a mechanism for diversifying the nation's energy supply and increasing domestic job growth. In addition to military applications, successful testing of Syntroleum's FT jet fuel could lead to opportunities with commercial airlines.

To learn more about the Air Force test please see the following link; www.af.mil.

About Syntroleum (Nasdaq:SYNM)

Syntroleum Corporation owns a proprietary process for converting natural gas or synthesis gas derived from coal and other carbon-based feedstock into synthetic liquid hydrocarbons. The company plans to use its technology to develop and participate in natural gas and coal monetization projects in a number of global locations.

This document includes forward-looking statements as well as historical information. Forward-looking statements include, but are not limited to, economics and development of possible Fischer-Tropsch projects, future capital and operating costs of the company, quality and performance of Fischer-Tropsch catalysts, potential results for Syntroleum shareholders, testing, qualities and uses of Fischer-Tropsch fuels, future programs with the United States government or it various entities, ownership of intellectual property rights, execution of definitive agreements, technology development and market development. When used in this document, the words "anticipate," "believe," "estimate," "expect," "intent," "may," "project," "plan," "should," and similar expressions are intended to be among the statements that identify forward-looking statements. Although Syntroleum believes that its expectations reflected in these forward-looking statements are reasonable, such statements involve risks and uncertainties and no assurance can be given that actual results will be consistent with these forward-looking statements. Important factors that could cause actual results to differ from these forward-looking statements include failure to execute definitive agreements, the potential that commercial-scale GTL or coal-to-liquids plants will not achieve the same results as those demonstrated on a laboratory or pilot basis or that such plants will experience technological and mechanical problems, the potential that improvements to the Syntroleum Process currently under development may not be successful, the impact on plant economics of operating conditions (including energy prices and government support for such plants), construction risks, risks associated with investments and operations of GTL and coal-to-liquids plants, the ability to implement corporate strategies, competition, intellectual property risks, Syntroleum's ability to obtain financing and other risks described in the 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

CONTACT:
Syntroleum Corporation, Tulsa
Gary Gamino, 918-592-7900
ggamino@syntroleum.com

SOURCE:
Syntroleum Corporation