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EXHIBIT 99.1


FOR IMMEDIATE RELEASE:


                           IONIC FUEL TECHNOLOGY, INC.
                 ANNOUNCES REORGANIZATION OF EUROPEAN OPERATIONS


      ESSEX, ENGLAND (August 10, 2001)... Ionic Fuel Technology, Inc. (OTC
BB:IFTI) stated today it is reorganizing its European operations to reduce costs
commensurate with its ongoing activities. As part of the reorganization, the
Company will form a new operating subsidiary based in England to conduct its
European operations. It is anticipated the reorganization will be completed
within six to eight weeks without service disruption to current customers.

      Ionic Fuel Technology, Inc. is an environmental and combustion technology
company providing environmental solutions, combustion technology and energy
utilization products and services to a variety of industries worldwide. The
Company provides thermal process consultancy services, "TPS" and management
information systems, "MIS", in addition to designing and assembling its
proprietary "IFT System" at its offices and manufacturing facility in Essex,
England. The Company's consultancy services and "IFT System" are marketed in the
United Kingdom, Europe and the United States.

      For further information on Ionic Fuel Technology, Inc. please contact, in
North America: Barry Morris, Morris Capital Markets Communications, LLC,
(212)-687-9707, in Europe: Mr. Tony Garner, President and Chief Executive
Officer, Ionic Fuel Technology, 011-44-126-849-1409, or access the Company's
website at www.ionicfuel.co.uk.