Syntroleum, ExxonMobil Sign Licensing Agreement

Business Wire, Dec 20, 2004

FAIRFAX, Va. -- Syntroleum Corporation (Nasdaq:SYNM) and ExxonMobil Research & Engineering Company (EMRE) announced today the execution of an agreement that grants Syntroleum a worldwide license under ExxonMobil's Gas to Liquids (GTL) patents to produce and sell fuels from natural gas or other carbonaceous substances such as coal. Syntroleum has the right to extend the terms of this agreement to its licensees.

ExxonMobil has established a strong proprietary position on the catalysts, processes and products of the AGC-21 Gas to Liquids conversion process. ExxonMobil has been offering to license over 3,500 worldwide patents to ensure that others are not blocked from introducing GTL products into countries in which ExxonMobil holds GTL patents.

Over the last 20 plus years Syntroleum has developed its own proprietary patented air-based Gas to Liquids process which it is utilizing in its Catoosa Demonstration Facility located near Tulsa, Okla. The Syntroleum Process is also the basis for its GTL Barge concept that Syntroleum is using to pursue stranded natural gas around the world.

"This agreement represents a very practical approach to the use of GTL technology," said Ken Agee, Syntroleum's Chairman and Chief Executive Officer. "We see this as an opportunity to gain freedom to operate under a significant number of GTL patents that can be used cost-effectively to improve certain of our processes."

"ExxonMobil's Gas to Liquids technology is the result of an over 20-year, $600 million research, development and engineering program," said Bill Innes, President, ExxonMobil Research & Engineering Company. "This state-of-the-art technology combines the best catalytic process and reactor engineering advances from our research and development organization."

The scope of this agreement includes the fields of syngas production, Fischer-Tropsch (FT) synthesis, product upgrading to make fuels and various processes that relate to these areas. It includes all existing ExxonMobil patents in these areas and future improvement patents in these areas over the next several years. This agreement does not include patents covering certain specific catalyst formulations and manufacturing steps. In the event that Syntroleum obtains patents after this license agreement which overlap ExxonMobil's patents, Syntroleum agrees that it will not enforce its patents against EMRE and its affiliates in those overlapping areas.

Syntroleum Corporation is the developer of a proprietary technology for converting natural gas into synthetic liquid hydrocarbons. The company, in participation with others, plans to build GTL plants using its technology in a number of global locations. Syntroleum also licenses its process to others for the manufacture of fuels. For more information, please visit our website at http://www.syntroleum.com.

ExxonMobil Research & Engineering Company invents, develops and applies process, product and engineering technology to support ExxonMobil's worldwide businesses. For more information, please visit our website at http://www.exxonmobil.com.

CAUTIONARY STATEMENT: Estimates, expectations, and business plans in this release are forward-looking statements. Actual future results, including technological developments and project plans and schedules, could differ materially due to changes in long-term oil and gas price levels or other market conditions affecting the oil and gas industry; the outcome of commercial negotiations; future technological developments; the actions of competitors; political or regulatory developments; and other factors discussed under the heading "Factors Affecting Future Results" included in Item 1 of ExxonMobil's most recent Form 10-K and posted on our website (www.exxonmobil.com).