Syntroleum and Marathon Commence Work on DOE Ultra-Clean Fuels Project

    TULSA, Okla., Sept. 10 Syntroleum announced
today that it is progressing plans with Marathon Oil Company to
develop a gas-to-liquids (GTL) project under a U.S. Department of Energy
program to produce ultra-clean fuels.  These new products are expected to be a
key part of meeting the demanding quality specifications that will be a
feature of the fuels of tomorrow.  In moving ahead with the construction phase
of the project, a request for proposals has been issued to selected companies.
The award of the Engineering, Procurement and Construction contract is
expected to take place in the fourth quarter 2001.

    Syntroleum and Marathon have been working together for several months in
readiness for the DOE program.  The agreement with the DOE was signed in July,
as previously announced.  Work on the $36 million project, of which the DOE
will fund $16 million, has already begun.  Marathon is partly funding the
project and is also providing technical and project management personnel to
work with Syntroleum in the engineering, construction and operation of the
synthetic fuels plant.  Certain items of equipment from Syntroleum's pilot
plant at BP's Cherry Point, Washington refinery are currently being dismantled
for shipment to a site at Port of Catoosa near Tulsa, Oklahoma, where the new
70 barrels per day stand-alone fuels production facility will be built.
Construction is scheduled to start in the first quarter 2002, with production
and testing of fuels expected to continue through completion of the program in
early 2004.

    The DOE project calls for the production of ultra-clean synthetic diesel
and jet fuels for a series of test programs that will be managed by Integrated
Concepts Research Corporation.  The synthetic fuels are expected to be
initially tested in fleet vehicles in Washington, DC and Denali National Park,
Alaska.

    "Marathon is excited to be involved in this important project," said Tim
Tipton, Marathon's vice president of Technology.  "The development of
commercial scale GTL technology has important implications for the future of
the energy industry and society in general.  Apart from the prospect of
producing ultra-clean transportation fuels critical for improving urban air
quality, the technology offers a means to avoid flaring of gas associated with
oil production in many parts of the world."

    "The data generated from the fleet demonstrations in commercial
applications and other advanced engine tests will be complementary to all the
testing that has already been done on Syntroleum fuels.  The data generated
will benefit our licensees, vehicle manufacturers, refiners and end-users
because it will better define the environmental and operating benefits of
these fuels," stated Larry Weick, VP of business development for Syntroleum.
"We believe that this is very important information for the refining industry
as refiners make decisions on how to comply with the ultra-low sulfur fuel
specifications that go into effect in both Europe and the US in 2005 and 2006,
respectively."