Alstom and Pegasus team to develop integrated optimization and control modules for environmental controls

May 15, 2002 — ALSTOM and Pegasus Technologies, Inc., a majority owned subsidiary of KFx Inc., have entered into a relationship to develop integrated optimization and control modules for a range of environmental control products.

Under the exclusive agreement, Pegasus and ALSTOM’s Environmental Control Systems Business – part of the Power Sector’s Boilers & Environment Segment – will jointly develop a series of products to apply neural net control technology to integration and optimization of air pollution control processes. The focus will be on developing “smart” emissions controls that will respond to changes in combustion output rather than the conventional response to CEM (Continuous Emission Monitoring) feedback.

Development has already started on a Selective Catalytic Reduction module and a Flue Gas Desulphurisation module. These products will be offered to a wide customer base, including ALSTOM’s existing client base, via the ALSTOM business development team with support from Pegasus.

Gary Nicholson, CEO of Pegasus, says of the partnership: “This partnership will enable us to provide unique integrated solutions, developed and field tested together with the ALSTOM engineering team, giving proven results and return on investment. These products will enhance our Combustion Optimisation software suite and enable power producers to optimise generation and air pollution control units, end-to-end, creating profit from existing production assets. Furthermore, a partnership with ALSTOM will give Pegasus additional market reach in the utility sector.”

Philippe Cochet, Managing Director of ALSTOM’s Global Environmental Business, comments: “We decided that the people, technology and Intellectual Property portfolio of Pegasus were a perfect fit for our strategy of introducing the industry’s first integrated advanced environmental control and post-combustion optimisation solution. Neural Nets, Artificial Intelligence, and all the unique hybrids offered by Pegasus are now delivering results that cannot be ignored by the power industry. We intend to use these products to leverage our market position with custom modules designed to address our environmental portfolio of products and those of other Original Equipment Manufacturers.

ALSTOM is a provider in the air pollution control arena, with environmental equipment installed on over 200,000 MW of Power Plant, and we intend to extend that leadership by offering Pegasus’ advanced technologies to our customers in an embedded form.”

Pegasus Technologies, Inc. is a provider of neural network based IT applications for the power generation market. The NeuSIGHTTM OS 2001 suite of combustion optimisation applications from Pegasus enables utilities to reduce emissions and increase efficiency of fossil fuel fired electric generating units. The Pegasus Technologies web address is Pegasus Technologies is majority-owned by KFx Inc. (Amex: KFX – news). KFx’s web address is

ALSTOM is a global specialist in energy and transport infrastructure. The Company serves the energy market through its activities in the fields of power generation, power transmission and distribution and the transport market through its activities in rail and marine. Following the sale of its electrical contracting activity, finalised on 20 July 2001, ALSTOM has annual sales in excess of 22 billion euros and employs 120,000 people in over 70 countries.

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