Successful Operation of Syn-Fuel Powered Electric Generator for the China Market

HOUSTON--Sept. 18, 2006--

Generator Set Utilizes Automotive Engine Technology to Cost Effectively Produce Power from Syn-Gas Produced by Coal Gasification

Synthesis Energy Systems, Inc. (OTC: SYMX) ("SES") and Quantum Fuel Systems Technologies Worldwide, Inc. ("Quantum") today announced the successful operation of the world's first engine generator using synthesis gas or "syngas" as fuel. The engine generator set, a 125 kW Kohler engine based on a General Motors 8.1 liter V-8 block, successfully, and repeatably produced stabilized power. The syngas used as fuel was identical to syngas produced by the U-Gas(R) coal gasification technology developed by the Gas Technology Institute and licensed to SES.

"Successful operation of the generator set is a major step forward in the cost effective utilization of Synthesis Gas," stated Timothy Vail, President and Chief Executive Officer. "The operation of an automotive engine as well as power production from gas created by our proprietary U-Gas(R) technology demonstrates the flexibility to use syngas in a wide array of applications, including power generation."

Earlier this year, SES awarded a contract to Quantum's team to develop the world's first syn-fuel powered generator set under a contract engineering/development program. Quantum is the industry leader in the development of automotive systems based on hydrogen fuel. The combination of SES' knowledge of the gasification process and Quantum's hydrogen engineering skills made the successful outcome possible.

"We are excited to have achieved this important milestone together with SES," said Alan P. Niedzwiecki, President and CEO of Quantum. "We strongly believe that innovative approaches, such as these synfuel power generators based on Quantum's advanced fuel system technologies, will play an important role in the world energy market."

ABOUT SYNTHESIS ENERGY SYSTEMS, INC.

Synthesis Energy Systems, Inc. is an energy technology company that deploys proprietary environmentally responsible technology to efficiently gasify low value fuels to replace high cost energy and chemical products sold to major global markets. With its proprietary U-Gas(R) technology (licensed from the Gas Technology Institute), SES can turn waste coal products into high value synthesis gas for use in power and chemical applications. SES technology performs this gasification without the harmful emissions normally associated with coal fired energy production. SES currently has offices in Houston, Texas, Shanghai and Beijing, China. More information can be found at www.synthesisenergy.com or by calling (713) 579-0600.

ABOUT QUANTUM FUEL SYSTEMS TECHNOLOGIES WORLDWIDE, INC.

Quantum and its subsidiary, Tecstar Automotive Group, are leaders in powertrain engineering, system integration, and manufacturing of packaged fuel systems and accessories for specialty vehicles and applications including fuel cells, hybrids, alternative fuels, hydrogen refueling, new body styles, mid-cycle vehicle product enhancements and high performance engines and drive trains for OEMs and consumers of aftermarket parts and accessories. Quantum also designs and manufactures hybrid and fuel cell vehicles.

Quantum has product commercialization alliances with General Motors, AM General, and Sumitomo. Quantum's customer base includes General Motors, Toyota, Opel, Hyundai, Suzuki, Ford, DaimlerChrysler, AeroVironment, and the U.S. Army.

More information can be found about Quantum's products and services at www.qtww.com.