Synthesis Energy Systems Announces Agreement with GTI to Expand and Extend Technology License Rights

Business Wire, Sept 25, 2006

License Agreement Expansion Provides for Global Exclusivity of Premier Gasification Technology, Allowing Synthesis Energy to Expand into New Markets

HOUSTON -- Synthesis Energy Systems, Inc. ("SES") (OTC:SYMX) 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 to global exclusivity and extended the term of the agreement to 30 years. Under the agreement, SES has also obtained limited rights to use highly reactive renewable fuels such as biomass, peat, and pulp mill residues in combination with U-GAS(R). Coincident with the license expansion, GTI has become a shareholder in SES.

"Once again, we are delighted to expand our relationship with GTI and welcome them as a new shareholder," stated Timothy Vail, President and CEO of SES. "We continue to see commercial opportunities on a global basis to deploy gasification technology to meet the needs of large energy customers. Gasification, and the U-Gas (R) technology in particular, address the environmental and energy security issues of the markets that we will operate in. Our expanded relationship with GTI allows us to leverage the gasification technology developed by GTI over the past thirty years as well as the expertise of the GTI team."

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 synthesis gas. The addition of renewable fuels in combination with U-GAS(R) technology broadens the portfolio of offerings that SES can make to customers and partners on a global basis. 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.

About Synthesis Energy Systems

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 low cost coal and biomass into high value synthesis gas. Synthesis gas can be used as fuel for power applications or as high value chemical intermediate to produce transportation fuels such as diesel, ethanol, and methanol. 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 http://www.synthesisenergy.com or by calling (713) 579-0600.

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.

Forward Looking Statements

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 SES 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.