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<SEC-DOCUMENT>0000950123-08-017134.txt : 20081208
<SEC-HEADER>0000950123-08-017134.hdr.sgml : 20081208
<ACCEPTANCE-DATETIME>20081208143905
ACCESSION NUMBER:		0000950123-08-017134
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20081205
ITEM INFORMATION:		Entry into a Material Definitive Agreement
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20081208
DATE AS OF CHANGE:		20081208

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			FUEL TECH, INC.
		CENTRAL INDEX KEY:			0000846913
		STANDARD INDUSTRIAL CLASSIFICATION:	INDUSTRIAL & COMMERCIAL FANS & BLOWERS & AIR PURIFYING EQUIP [3564]
		IRS NUMBER:				205657551
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-33059
		FILM NUMBER:		081235550

	BUSINESS ADDRESS:	
		STREET 1:		512 KINGSLAND DRIVE
		CITY:			BATAVIA
		STATE:			IL
		ZIP:			60510
		BUSINESS PHONE:		6308454437

	MAIL ADDRESS:	
		STREET 1:		512 KINGSLAND DRIVE
		CITY:			BATAVIA
		STATE:			IL
		ZIP:			60510

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	FUEL TECH N V
		DATE OF NAME CHANGE:	19930510
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>y73092e8vk.htm
<DESCRIPTION>FORM 8-K
<TEXT>
<HTML>
<HEAD>
<TITLE>8-K</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="width: 100%; border-bottom: 2pt solid black; font-size: 1pt">&nbsp;</DIV>
<DIV style="width: 100%; border-bottom: 1pt solid black; font-size: 1pt">&nbsp;</DIV>




<DIV align="center" style="font-size: 14pt; margin-top: 12pt"><B>UNITED STATES<BR>
SECURITIES AND EXCHANGE COMMISSION</B>
</DIV>

<DIV align="center" style="font-size: 12pt"><B>Washington, D.C. 20549</B>
</DIV>

<DIV align="center" style="font-size: 18pt; margin-top: 12pt"><B>FORM 8-K</B>
</DIV>


<DIV align="center" style="font-size: 12pt; margin-top: 12pt"><B>CURRENT REPORT<BR>
Pursuant to Section&nbsp;13 or 15(d) of The Securities Exchange Act of 1934</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><B>Date of Report (Date of earliest event reported) December&nbsp;5, 2008</B></DIV>

<DIV align="center" style="font-size: 24pt; margin-top: 12pt"><B>FUEL TECH, INC.</B>
</DIV>

<DIV align="center" style="font-size: 10pt">(Exact name of registrant as specified in its charter)</DIV>


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
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<TR valign="bottom">
    <TD width="30%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="30%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="30%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="center" valign="top"><B>Delaware</B><BR>
(State or other jurisdiction <BR>
of incorporation)
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>001-33059</B><BR>
(Commission<BR>
File Number)
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>20-5657551</B><BR>
(IRS Employer<BR>
Identification No.)</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><B>Fuel Tech, Inc.<BR>
27601 Bella Vista Parkway<BR>
Warrenville, IL 60555-1617<BR>
630-845-4500</B></DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><B>(Address and telephone number of principal executive offices)</B></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the
filing obligation of the registrant under any of the following provision:</B>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><FONT face="Wingdings">&#111;</FONT></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Written communications pursuant to Rule&nbsp;425 under the Securities Act (17 CFR 230.425)</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><FONT face="Wingdings">&#111;</FONT></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Soliciting material pursuant to Rule&nbsp;14a-12 under the Exchange Act (17 CFR 240.14a-12)</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><FONT face="Wingdings">&#111;</FONT></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Pre-commencement communications pursuant to Rule&nbsp;14d-2(b) under the Exchange Act (17 CFR
240.14d-2(b))</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><FONT face="Wingdings">&#111;</FONT></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Pre-commencement communications pursuant to Rule&nbsp;13e-4(c) under the Exchange Act (17 CFR
240.13e-4(c))</TD>
</TR>

</TABLE>
</DIV>

<DIV style="width: 100%; border-bottom: 1pt solid black; margin-top: 10pt; font-size: 1pt">&nbsp;</DIV>
<DIV style="width: 100%; border-bottom: 2pt solid black; font-size: 1pt">&nbsp;</DIV>





<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<P><HR noshade><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<!-- TOC -->
<A name="toc"><DIV align="CENTER" style="page-break-before:always"><U><B>TABLE OF CONTENTS</B></U></DIV></A>

<P><CENTER>
<TABLE border="0" width="90%" cellpadding="0" cellspacing="0">
<TR>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
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	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="76%"></TD>
</TR>
<TR><TD colspan="9"><A HREF="#000">Item&nbsp;1.01. Entry into a Material Definitive Agreement</A></TD></TR>
<TR><TD colspan="9"><A HREF="#001">Item&nbsp;9.01. Financial Statements and Exhibits</A></TD></TR>
<TR><TD colspan="9"><A HREF="#002">SIGNATURES</A></TD></TR>
<TR><TD colspan="9"><A HREF="y73092exv99w1.htm">EX-99.1: PRESS RELEASE</A></TD></TR>
</TABLE>
</CENTER>
<!-- /TOC -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>




<!-- link1 "Item&nbsp;1.01. Entry into a Material Definitive Agreement" -->
<DIV align="left"><A NAME="000"></A></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Item&nbsp;1.01. Entry into a Material Definitive Agreement.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">On December&nbsp;8, 2008, Fuel Tech, Inc. (the &#147;Company&#148;) announced the signing of a definitive
agreement to acquire substantially all of the assets of Advanced Combustion Technology, Inc.
(&#147;ACT&#148;). ACT, headquartered in Hooksett, New Hampshire, is a leading provider of nitrogen oxide
(&#147;NOx&#148;) control systems, including low NOx burners and over-fire air systems, and will become part
of the Company&#146;s Air Pollution Control reporting segment.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The purchase price is approximately $22&nbsp;million in cash, payable at closing and subject to
adjustment for working capital, plus performance-based contingent payments. The transaction is
structured as an asset purchase and the agreement contains customary representations, warranties,
covenants and conditions, as well as indemnification provisions subject to specified limitations.
The transaction is subject to customary approvals and is expected to close in early January&nbsp;2009.
The announcement referencing the transaction is attached as Exhibit&nbsp;99.1 to this report on Form
8-K.
</DIV>

<!-- link1 "Item&nbsp;9.01. Financial Statements and Exhibits" -->
<DIV align="left"><A NAME="001"></A></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Item&nbsp;9.01. Financial Statements and Exhibits.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;Exhibits
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;99.1 Press Release of December&nbsp;8, 2008 issued by Fuel Tech, Inc.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">
<!-- link1 "SIGNATURES" -->
<DIV align="left"><A NAME="002"></A></DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>SIGNATURES</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused
this report to be signed on its behalf by the undersigned hereunto duly authorized.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="55%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left"><B>Fuel Tech, Inc.</B><BR>
(Registrant)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Date: December&nbsp;8, 2008</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">By:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">/s/ John P. Graham</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">John P. Graham</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Chief Financial Officer,</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Sr. Vice President and</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Treasurer</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>2
<FILENAME>y73092exv99w1.htm
<DESCRIPTION>EX-99.1: PRESS RELEASE
<TEXT>
<HTML>
<HEAD>
<TITLE>EX-99.1</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Exhibit&nbsp;99.1</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="10%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="25%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">

<TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">DATE:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">December 8, 2008</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">CONTACT:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">John P. Graham, Chief Financial
Officer (630) 845-4500, </TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Tracy H. Krumme, Vice President,
Investor Relations (203) 425-9830</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"></TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B><I>FUEL TECH SIGNS DEFINITIVE AGREEMENT TO ACQUIRE</I></B>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B><I>ADVANCED COMBUSTION TECHNOLOGY, INC.</I></B>

</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B><I>&#151;Provides Significant Presence in Combustion Modification Market &#151;</I></B>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>WARRENVILLE, Ill., Dec. 8, 2008 </B>&#150; Fuel Tech, Inc. (NASDAQ: FTEK) today announced it has
reached a definitive agreement to acquire substantially all of the assets of Advanced Combustion
Technology, Inc. (ACT), a leading provider of nitrogen oxide (NOx) control systems, including low
NOx burners and over-fire air systems, for approximately $22&nbsp;million in cash plus performance-based
contingent payments. The acquisition, which is expected to close in early January&nbsp;2009, is subject
to customary closing conditions and will be funded primarily with cash on hand.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Located in Hooksett, New Hampshire, ACT is an industry leader in NOx control, offering a wide
array of products and services to operators of utility and large industrial boilers. With its
substantial knowledge of combustion and NOx formation processes, ACT is in the forefront of
designing, engineering and installing highly efficient, cost-effective systems for combustion
modification and post-combustion NOx control.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Combustion modification reduces the formation of NOx by altering the combustion process,
typically by upgrading existing burners to low NOx burners; replacing existing low NOx burners with
new ultra low NOx burners; and/or installing overfire air (OFA)&nbsp;systems. Low NOx burners reduce
NOx formation by utilizing fuel and air to stage combustion inside the furnace. OFA systems
further reduce NOx formation by diverting air from the burner zone to the upper furnace for
enhanced combustion staging. Depending on the NOx reduction levels being sought, these approaches
can be used either on a stand-alone basis or in combination with post-combustion NOx control
techniques, such as ACT&#146;s urea-based High Energy Reagent Technology (HERT)&nbsp;system or Fuel Tech&#146;s
NOxOUT<SUP style="font-size: 85%; vertical-align: text-top">&#174;</SUP> SNCR and NOxOUT CASCADE<SUP style="font-size: 85%; vertical-align: text-top">&#174;</SUP> systems. The ability to layer these
complementary technologies can yield overall NOx reductions as high as 85%.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ACT enjoys an extensive customer base, principally in the United States, with systems
installed on over 70 units burning a variety of fuels, including coal, fuel oil and natural gas.
In addition to system installations, ACT provides combustion optimization services, including:
airflow testing, to improve burner stability and combustion efficiency; coal flow testing, to
ensure optimal coal mill settings and uniform coal flow to the burners; and boiler tuning and
consulting services.
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ACT employs 14 individuals and had 2007 revenues of approximately $21&nbsp;million. As of December
1, 2008, ACT&#146;s order backlog was approximately $11&nbsp;million.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;John F. Norris Jr., President and Chief Executive Officer, commented, &#147;For several years, one
of Fuel Tech&#146;s key strategic objectives has been the establishment of a meaningful presence in the
combustion modification market, so we are truly pleased to be announcing a definitive agreement to
acquire substantially all of the assets of Advanced Combustion Technology. As one of the
acknowledged leaders in the field of combustion modification, ACT provides the requisite experience
and know-how to extend Fuel Tech&#146;s NOx reduction expertise into the furnace&#146;s burner region, a
capability we have long sought. In addition, ACT&#146;s strong domestic customer base should offer new
opportunities for marketing Fuel Tech&#146;s full suite of technologies.&#148;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mr.&nbsp;Norris continued, &#147;ACT not only provides Fuel Tech with an immediate presence in the
fast-growing combustion modification market, but also broadens our product portfolio with a total
technical solution for NOx control, from the burner to the stack. Equally important, this
acquisition will provide a natural conduit for potential follow-on business from those clients
requiring deeper emission reductions that can only be satisfied with post-combustion NOx controls.
Our customers should particularly benefit from the added flexibility afforded by ACT&#146;s HERT system,
which will complement Fuel Tech&#146;s suite of post-combustion technical solutions based on our
NOxOUT<SUP style="font-size: 85%; vertical-align: text-top">&#174;</SUP> technologies.&#148;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Peter Marx, President of ACT, stated, &#147;We are excited to be joining an organization with such
a stellar reputation as Fuel Tech. With the financial, technical and marketing strengths that Fuel
Tech has to offer, particularly in international markets such as China, we believe the potential to
grow our businesses is enormous, particularly as the need for cleaner and more cost-efficient fuel
combustion takes center stage in global power generation markets.&#148;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mr.&nbsp;Norris concluded, &#147;Along with our recently announced acquisition of Tackticks and
FlowTack, we believe this transaction will further solidify Fuel Tech&#146;s position as a major
presence in the air pollution control market, while serving to enhance long-term shareholder
value.&#148;
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%"><B>Conference Call</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%"><I>Fuel Tech will host a conference call this morning at 9:00 AM ET to discuss this release.
The call will simultaneously be broadcast over the Internet at </I><U><I>www.ftek.com</I></U><I> and can be
accessed on the Home page under &#147;Quick Links.&#148; The call can also be accessed by dialing
800-299-0433 (domestic)&nbsp;or 617-801-9712 (international)&nbsp;and using the passcode &#147;Fuel Tech.&#148; A
replay of the call will be available on the website and can be accessed by dialing 888-286-8010
(domestic)&nbsp;or 617.801.6888 (international)&nbsp;and using the passcode &#147;21602335.&#148; The replay will
be available until December&nbsp;29, 2008.</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>About Fuel Tech</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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.&nbsp; These technologies enable
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">customers to produce both energy and processed materials in a cost-effective and environmentally
sustainable manner.
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company&#146;s nitrogen oxide (NOx) reduction technologies include the NOxOUT<SUP style="font-size: 85%; vertical-align: text-top">&#174;</SUP>,
NOxOUT CASCADE<SUP style="font-size: 85%; vertical-align: text-top">&#174;</SUP>, NOxOUT ULTRA<SUP style="font-size: 85%; vertical-align: text-top">&#174;</SUP>, Rich Reagent Injection (RRI)&nbsp;and
NOxOUT-SCR<SUP style="font-size: 85%; vertical-align: text-top">&#174;</SUP> processes. These technologies have established Fuel Tech as a leader in
post-combustion NOx control systems, with installations on over 450 units worldwide, where coal,
municipal waste, biomass, and other fuels are utilized.
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company&#146;s FUEL CHEM<SUP style="font-size: 85%; vertical-align: text-top">&#174;</SUP> technology revolves around the unique application of
chemicals to improve the efficiency, reliability, fuel flexibility and environmental status of
combustion units by controlling slagging, fouling, corrosion, opacity and acid plume, as well as
the formation of sulfur trioxide, ammonium bisulfate, particulate matter (PM<SUB style="font-size: 85%; vertical-align: text-bottom">2.5</SUB>), carbon
dioxide and NOx.&nbsp; This technology, in the form of a customizable FUEL CHEM program, is being
applied to over 95 combustion units burning a wide variety of fuels including coal, heavy oil,
biomass, and municipal waste.&nbsp; A breakdown of the nature of these customer units is posted on the
Company&#146;s website.&nbsp;
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company also provides a range of services to help optimize selective catalytic reduction
system performance, including catalyst management services and ammonia injection grid tuning. In
addition, flow corrective devices and physical and computational modeling services are available to
optimize flue gas distribution and mixing in both power plant and industrial applications.
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Many of Fuel Tech&#146;s products and services rely heavily on the Company&#146;s exceptional
Computational Fluid Dynamics modeling capabilities, which are enhanced by internally developed,
high-end visualization software. These capabilities, coupled with the Company&#146;s innovative
technologies and multi-disciplined team approach, enable Fuel Tech to provide practical solutions
to some of our customers&#146; most challenging problems.&nbsp; For more information, visit Fuel Tech&#146;s web
site at <U>www.ftek.com</U>.
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<DIV align="center" style="font-size: 10pt; margin-top: 18pt">&#151;more&#151;
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>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.</I>
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