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<SEC-DOCUMENT>0000950123-10-020758.txt : 20100304
<SEC-HEADER>0000950123-10-020758.hdr.sgml : 20100304
<ACCEPTANCE-DATETIME>20100304060053
ACCESSION NUMBER:		0000950123-10-020758
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20100303
ITEM INFORMATION:		Results of Operations and Financial Condition
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20100304
DATE AS OF CHANGE:		20100304

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:		10655434

	BUSINESS ADDRESS:	
		STREET 1:		27601 BELLA VISTA PARKWAY
		CITY:			WARRENVILLE
		STATE:			IL
		ZIP:			60555
		BUSINESS PHONE:		6308454433

	MAIL ADDRESS:	
		STREET 1:		27601 BELLA VISTA PARKWAY
		CITY:			WARRENVILLE
		STATE:			IL
		ZIP:			60555

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	FUEL TECH N V
		DATE OF NAME CHANGE:	19930510
</SEC-HEADER>
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<TYPE>8-K
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<DESCRIPTION>FORM 8-K
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<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) March&nbsp;3, 2010</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>
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    <TD width="5%">&nbsp;</TD>
    <TD width="30%">&nbsp;</TD>
</TR>
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<TR valign="bottom">
    <TD align="center" valign="top"><B>Delaware</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>001-33059</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>20-5657551</B></TD>
</TR>
<TR style="font-size: 1px">
    <TD align="center" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top">(State or other jurisdiction <BR>
of incorporation)
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">(Commission<BR>
File Number)
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">(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: 18pt"><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 align="left" style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
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    <TD></TD>
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<TR>
    <TD valign="top"><FONT face="Wingdings">&#111;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>Written communications pursuant to Rule&nbsp;425 under the Securities Act (17 CFR 230.425)
</TD>
</TR>
</TABLE>
</DIV>

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    <TD></TD>
</TR>

<TR>
    <TD valign="top"><FONT face="Wingdings">&#111;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>Soliciting material pursuant to Rule&nbsp;14a-12 under the Exchange Act (17 CFR 240.14a-12)
</TD>
</TR>
</TABLE>
</DIV>

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<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
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    <TD width="3%"></TD>
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    <TD></TD>
</TR>

<TR>
    <TD valign="top"><FONT face="Wingdings">&#111;</FONT></TD>
    <TD>&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>
</TABLE>
</DIV>

<DIV align="left" style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
    <TD width="3%"></TD>
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    <TD></TD>
</TR>

<TR>
    <TD valign="top"><FONT face="Wingdings">&#111;</FONT></TD>
    <TD>&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>







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</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">



<!-- link2 "Item&nbsp;2.02. Results of Operations and Financial Condition." -->

<DIV align="left" style="margin-top: 12pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD></TD>
</TR>
<TR valign="top">
    <TD nowrap align="left"><B>Item&nbsp;2.02.</B></TD>
    <TD>&nbsp;</TD>
    <TD><B>Results of Operations and Financial Condition.</B></TD>
</TR>
</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">On March&nbsp;3, 2010, Fuel Tech, Inc. (the &#147;Company&#148;) issued a press release regarding its consolidated
financial results for the fourth quarter and for the full year ended December&nbsp;31, 2009. A copy of
the Company&#146;s March&nbsp;3, 2010, press release is furnished as Exhibit&nbsp;99.1 to this Current Report on
Form 8-K and is incorporated herein by reference.</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The information contained in Item&nbsp;2.02 of this Current Report on Form 8-K, including Exhibit&nbsp;99.1
hereto, shall not be treated as &#147;filed&#148; for purposes of the Securities Exchange Act of 1934, as
amended.</DIV>

<!-- link2 "Item&nbsp;9.01 Financial Statements and Exhibits" -->

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<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
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<TR valign="top">
    <TD nowrap align="left"><B>Item&nbsp;9.01</B></TD>
    <TD>&nbsp;</TD>
    <TD><B>Financial Statements and Exhibits</B></TD>
</TR>
</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">(d)&nbsp;Exhibits</DIV>

<DIV align="center">
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    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">99.1</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD valign="top" style="font-size: 10pt">&nbsp;</TD>
    <TD valign="top" style="font-size: 10pt"><DIV style="margin-left:0px; text-indent:-0px">Fuel Tech, Inc. Press Release dated March&nbsp;3, 2010, entitled &#147;FUEL TECH REPORTS FOURTH QUARTER
2009 RESULTS &#151;FUEL CHEM<SUP style="font-size: 85%; vertical-align: text-top">&#174;</SUP> Revenues Repeat Record Year&#148;</DIV></TD>
</TR>
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</TABLE>
</DIV>

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

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">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>


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    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left"><B>Fuel Tech, Inc.</B><BR>
(Registrant)<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">Date: March 4, 2010&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">/s/ Albert G. Grigonis
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left">Albert G. Grigonis&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left">Vice President, General Counsel and
Secretary&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
</TABLE>


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<DIV align="right" style="font-size: 10pt; margin-top: 18pt"><B>EXHIBIT 99.1</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>FUEL TECH REPORTS FOURTH QUARTER 2009 RESULTS</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B><I>&#151;FUEL CHEM</I></B><SUP style="font-size: 85%; vertical-align: text-top">&#174;</SUP> <B><I>Revenues Repeat Record Year&#151;</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>WARRENVILLE, Ill., Mar. 3, 2010 </B>&#151; Fuel Tech, Inc. (NASDAQ: FTEK), a world leader in advanced
engineering solutions for the optimization of combustion systems and emissions control in utility
and industrial applications, today reported results for the three- and 12- month periods ended
December&nbsp;31, 2009.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><U>Fourth Quarter 2009</U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Revenues for the fourth quarter totaled $18.7&nbsp;million, a 3% increase from the comparable
prior-year quarter. The net income for the quarter was $0.2&nbsp;million, or $0.01 per diluted share,
compared with a net loss of ($0.8) million, or ($0.03) per diluted share, in the same year-ago
quarter.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Air Pollution Control technology segment (APC segment) recorded revenues of $10.5&nbsp;million,
an increase of 21% versus the fourth quarter of 2008. Segment gross margins were 39% in the fourth
quarter of 2009 versus the 44% reported in the fourth quarter of 2008, primarily due to a
pass-through catalyst sale at a nominal gross margin percentage and the timing of project
milestones for other contracts that primarily involved lower margins or lower margin
revenue-generating activities, such as initial engineering design and project start-up activities,
in support of APC projects.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The FUEL CHEM<SUP style="font-size: 85%; vertical-align: text-top"><SUP style="font-size: 85%; vertical-align: text-top">&#174;</SUP></SUP> technology segment (FUEL CHEM segment) generated revenues of $8.1
million, a decrease of 14% from the comparable 2008 quarter. Revenue gains associated with new
customer commercial units and demonstration programs were largely offset by the shut down or
scaling back of chemical injection at certain client units experiencing depressed electricity
demand. Current quarter revenues include $6.8&nbsp;million from coal-fired units, a 13% decrease versus
a year ago, and $1.3&nbsp;million from non-coal-fired units, down 18% from the comparable prior-year
quarter, reflecting lower sales to oil-fired units as reduced industrial loads and the high cost of
oil suppressed its use as a fuel source. Segment gross margins increased from 37% in the fourth
quarter of 2008 to 48% in the current quarter, due to reduced domestic FUEL CHEM demonstration
program expenses and a higher-than-average margin on an international demonstration program.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Selling, general and administrative (SG&#038;A) expenses totaled $7.1&nbsp;million in the current
quarter versus $7.2&nbsp;million in the same year-ago period. Increases in expenses related to sales
commissions, predominantly on FUEL CHEM segment revenues, associated with a new sales commission
plan initiated January&nbsp;1, 2009 and additional salaries and benefits arising principally from the
acquisition of substantially all of the assets of Advanced Combustion Technology, Inc. (ACT)&nbsp;in
January&nbsp;2009 were offset by mid-year personnel and other expense reductions in response to the
suppressed levels of revenue versus fiscal 2008.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Research and development (R&#038;D) expenses were $0.2&nbsp;million, compared with $0.3&nbsp;million in the
fourth quarter of 2008, as R&#038;D activities were scaled back in light of the economic slowdown.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><U>Full Year 2009 </U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Revenues for fiscal 2009 were $71.4&nbsp;million, a decline of 12% from fiscal 2008. The net loss
for the full year totaled ($2.3) million, or ($0.10) per diluted share, compared with net income of
$3.4&nbsp;million, or $0.14 per diluted share, for the prior year.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The APC technology segment recorded revenues of $34.7&nbsp;million, a 22% decline versus fiscal
2008, as utility and industrial customers continued to curtail investments in APC equipment due to
the sluggish economy and uncertainty surrounding prospective revisions to the Clean Air Interstate
Rule (CAIR). Segment gross margins stood at 38% versus 45% reported for full year 2008. The
decline was primarily due to pass-through catalyst sales at a nominal gross margin percentage and
project timing that resulted in a higher-than-average project mix towards other lower margin
revenue-generating activities supporting APC projects.
</DIV>

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

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Revenues for the FUEL CHEM segment totaled $36.7&nbsp;million, equal to the record amount reported
for fiscal 2008. Of the $36.7&nbsp;million in total 2008 segment revenues, $31.6&nbsp;million was generated
from coal-fired units while $5.1&nbsp;million was derived from non-coal-fired units. Of the $36.7
million in total 2009 segment revenues, $32.5&nbsp;million was associated with coal-fired units (a 3%
increase versus the comparable prior-year period) while revenues from non-coal-fired units declined
19% to $4.2&nbsp;million. Segment gross margins declined from 46% for fiscal 2008 to 43% for fiscal
2009, reflecting the impact of several domestic and international demonstration programs, a
one-time equipment sale at a nominal price to support the start-up of a Mexico-based FUEL CHEM
program, and the impact of local fixed costs spread over a suppressed average revenue base for most
clients. At December&nbsp;31, 2009, approximately $2.0&nbsp;million in risk-share revenue was deferred and
not recognized; however, the Company expects this amount to be fully recognized in the first
quarter of 2010. Risk-share revenues are recognized when and if the FUEL CHEM demonstration
program is deemed a success by the customer.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SG&#038;A expenses totaled $32.3&nbsp;million versus $28.4&nbsp;million in the same year-ago period. This
increase can be attributed to the following: additional salaries and benefits arising principally
from the aforementioned ACT acquisition; sales commission expenses, mainly for the FUEL CHEM
segment, associated with a new sales commission plan initiated January&nbsp;1, 2009; and a one-time
employee expense related to a workforce reduction during the second quarter of 2009. R&#038;D expenses
for fiscal 2009 were $0.5&nbsp;million versus $2.1&nbsp;million for fiscal
2008 as R&#038;D activities were moderated in the wake of
the global economic downturn and revenue shortfalls.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For 2009, the Company announced contract awards with a value of approximately $37.8&nbsp;million.
After accounting for the conversion of backlog to revenues during this period, the APC segment
capital projects backlog stood at $22.0&nbsp;million as of December&nbsp;31, 2009. Subsequent to December
31, 2009, the Company has announced APC orders with a value in excess of $4.6&nbsp;million.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;John F. Norris Jr., President and Chief Executive Officer, commented, &#147;Fuel Tech&#146;s results
continue to be hampered by challenging economic conditions, weak domestic electricity demand and
continued domestic regulatory uncertainty. These conditions have significantly impacted both of
our business segments and we expect them to continue at least through the first half of 2010.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mr.&nbsp;Norris added, &#147;Despite the recession, we are encouraged that our annual FUEL CHEM segment
revenues equaled the record level reported for 2008. This is especially remarkable given that most
of our domestic coal utility customers are experiencing significant reductions in coal-fired power
generation due to the weaker electricity demand, especially in the industrial sector. When client
plants operate at reduced loads, less of our FUEL CHEM products are consumed and this depresses our
revenues and margins as personnel and equipment costs are incurred even when our programs are
underutilized.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mr.&nbsp;Norris continued, &#147;In the domestic APC sector, we continue to see utilities employ
significantly less capital on NOx controls on their operating coal plants as they await the
Environmental Protection Agency&#146;s (EPA)&nbsp;revisions to CAIR, expected in the first half of this year.
Some utilities and industrial operators are, however, moving forward with installing the first
phases of NOx control since they realize those will be needed under any likely regulatory outcome.
Those initial controls typically involve Low NOx Burners and Over-Fire Air systems, technologies we
acquired with the 2009 acquisition of substantially all of the assets of ACT. One such example of
this was the fourth quarter
2009 award of the single largest APC order in the Company&#146;s history. Such
contracts reflect market drivers in addition to CAIR, such as the EPA&#146;s Regional Haze Rule, which
seeks to improve visibility in national parks and wilderness areas, and local consent decrees,
which are court-ordered settlements directed at specific utilities and industrial operators for the
control of NOx emissions.&#148;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mr.&nbsp;Norris concluded, &#147;In China, we are very encouraged by the recent publication of their NOx
control Policy by the Ministry of Environmental Protection, which sets forth the framework for NOx
regulations which will be forthcoming as part of their Twelfth Five-Year Plan that will go into
effect on January&nbsp;1, 20l1. The requirements in the Policy align well with our expanded portfolio of
NOx reduction capabilities which cover the full spectrum from combustion modifications to ASCR&#153;
(Advanced Selective Catalytic Reduction) systems. With our industry-leading suite of air pollution
control products and services and strong financial position, we believe we are uniquely and
strongly positioned to help utilities in China as well as those in the U.S. meet their near-term
and longer-term NOx control strategies.&#148;
</DIV>

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

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>As a reminder, Fuel Tech will host a conference call on Thursday, March 4 at 9:00 AM EST to discuss
the results. The call will simultaneously be broadcast over the Internet at </I><U><B>www.ftek.com</B></U>
<I>and can be accessed under </I><B><I>&#147;</I></B><U><B><I>Quick Links&#148; on the Home page</I></B></U><I>. The call can also be accessed by
dialing 866-783-2141 (domestic)&nbsp;or 857-350-1600 (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;22234330.&#148; The replay will be
available until March&nbsp;29, 2010.</I>
</DIV>


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