Clean Air Engineering Inc. signs agreement with KFx Inc. subsidiary to distribute control & optimization technology to boiler market

Sept. 17, 2002 — KFx Inc.’s subsidiary, Pegasus Technologies Inc. and Clean Air Engineering Inc. have entered into a value-added reseller agreement for Pegasus’ OS-2003 Optimization Suite.

This agreement will broaden Pegasus’ market penetration into the expanding industrial boiler control and optimization market.

CleanAir will offer Pegasus’ OS-2003 applications and solutions for combustion control and optimization to the industrial boiler market in North America and Europe.

“We are very pleased to be working with Pegasus, whom we consider to be the world leader in combustion control system management. We believe that Pegasus’ products will provide substantial environmental and economic benefits to our industrial clients. This agreement furthers our aim of delivering the highest value products and services for air quality management,” said Bill Walker, President and founder of CleanAir.

“We at Pegasus are extremely pleased and excited entering into this reseller agreement with CleanAir,” said Gary Nicholson, CEO of Pegasus. “Teaming with CleanAir is consistent with Pegasus’ strategy of partnering with the best. CleanAir has provided high quality products and services to the utility market for several years. CleanAir will now offer our complementing technologies to their clients. This agreement will allow us to provide controlled and optimized performance to the broad based industrial market.”

“Bringing together Pegasus’ range of products and services with those of Clean Air Engineering puts the Pegasus-CleanAir Team in the position of providing even more efficient services as the industry leaders in size, technology, installed base, client results and intellectual portfolio. Entering into this agreement with Pegasus will double our market size and expand the array of new technologies we offer. We are working closely with Pegasus to aggressively apply these powerful technologies to a broader range of combustion equipment,” said Allen Kephart, Vice President of CleanAir.

About KFx/Pegasus

KFx provides fuel solutions for the power industry. Its patented K-Fuelà‚® process converts low heating value coal into clean, high-energy fuel. The KFx web site address is . Pegasus Technologies, Inc., a majority-owned subsidiary of KFx, is a provider of neural network based optimization and control applications for the power generation market. The Pegasus OS-2003 suite of combustion optimization solutions enables customers to reduce emissions and increase the efficiency of their fossil-fueled electric generating units. Pegasus is headquartered in Mentor, OH and also has an office in Austin, TX. The Pegasus web site address is .

About Clean Air Engineering

Clean Air Engineering is an engineering service company comprised of a team of engineers, scientists, and support staff with over 30 years’ experience focusing on air quality management. Headquartered in Palatine, Illinois the company’s other domestic and international offices are located in Pennsylvania, Texas, and France.

For more information about any of CleanAir’s services, go to its web site at

Source: KFx Inc.

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