Synthesis Energy Systems Announces Agreement with GTI to Expand License Rights Globally

Business Wire, March 9, 2006

MIAMI -- Synthesis Energy Systems, Inc. (OTC:SYMX)("SES") announced today that it has reached agreement with the Gas Technology Institute (GTI) to expand and extend the term of its licensing rights for the U-GAS(R) gasification technology. Under the new agreement, SES has expanded its rights to the U-GAS(R) technology beyond its original China license to include the Appalachian region of the United States, the United Kingdom, India, Pakistan and Australia. Taken together, these markets represent more than half of world coal reserves. GTI has also agreed to extend the term of the original license from 10 to 20 years, with 18 years currently remaining.

The U-GAS(R) gasification technology is at the core of the SES strategy to convert low cost and low quality coal into high value commodities such as synfuel - reducing dependence on imported oil for all of these countries which are, or are soon to be, net oil importers. SES projects can cleanly produce multiple commodities such as electricity, steam, hydrogen, carbon monoxide, nitrogen, and oxygen for use in diversified manufacturing operations from computer chips to petrochemicals, or as a basic building block for synthetic fuel production including methanol, ethanol, and diesel fuel.

"We are delighted to expand our relationship with GTI." stated Lorenzo Lamadrid, Chairman of the SES Board. "This agreement represents an important milestone towards fulfilling our goal of helping countries reduce their dependence on imported oil and expensive natural gas. By cleanly and efficiently converting abundant coal reserves into a variety of high-value commodities SES will help meet the energy needs of the world's fastest growing markets. We have already seen a tremendous response and demand for SES technology and projects - both within China as well as the other markets covered by our license agreement."

About Synthesis Energy Systems:

Synthesis Energy Systems, Inc. is an energy and technology company that, through its subsidiaries, is developing projects that will utilize advanced technologies to cleanly transform low cost and waste coal into high value products such as hydrogen, electricity, steam, and other high value chemical intermediates used to produce transportation fuels such as diesel, ethanol, and methanol as well as other commodities for its customers on a global basis.

About GTI:

GTI is the leading research, development and training organization serving the natural gas industry and energy markets. For more than 60 years, GTI has been meeting the nation's energy and environmental challenges by developing technology-based solutions for consumers, industry, and government.

Except for historical information contained herein, the matters discussed in this press release contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended that involve substantial risks and uncertainties. When used in this press release and in any documents incorporated by reference herein, the words "expects," "will" and similar expressions identify certain of such forward-looking statements. Actual results, performance, or achievements could differ materially from those contemplated, expressed, or implied by the forward-looking statements contained herein. These forward-looking statements are based largely on the expectations of SES and are subject to a number of risks and uncertainties that are subject to change based on factors which are, in many instances, beyond SES's control. These include, but are not limited to, risks and uncertainties associated with: the impact of economic, competitive, and other factors affecting the Company and its operations; and other risk factors. SES cautions that the foregoing factors are not exclusive. SES assumes no obligation to update the information contained in this press release.