ADA-ES Selected by Department of Energy to Develop Technology to Reduce Carbon Dioxide Emissions from Coal-Fired Power Plants

Business Wire, July 31, 2008

Multi-Million Dollar Project Includes $1M from Large Power Producers

LITTLETON, Colo. -- ADA-ES, Inc. (NASDAQ: ADES) today announced that it was notified by the Department of Energy that it had been selected to develop a technology that will capture carbon dioxide from coal-fired power plants. ADA-ES will be the prime contractor in what is expected to be a several million dollar project with the DOE's National Energy Technology Laboratory and several industry participants. Several major power producers interested in supporting the development of the technology have provided letters of commitment to contribute $1.2 million of the project funding. These participants include AEP, Luminant, Southern Company, and Xcel Energy. In addition, the Electric Power Research Institute has agreed to support the project. Final scope of work and terms are to be worked out with DOE on the contract over the next two months.

The technology is being designed to provide a means of reducing the emissions of greenhouse gases from coal-fired boilers. In the United States, alone, there are 1,100 coal-fired power plants with a total capacity of 320 GWs of electricity and, as a group represent the single largest source of carbon dioxide emissions from human activity. Regulations to limit carbon emissions in the future are being discussed at the International, Federal, Regional, and State levels.

ADA-ES will be developing emission reduction technology based around the use of solid sorbents. Most competing technologies use liquid solvents such as ammonia or amines to accomplish this task.

Dr. Michael Durham, President of ADA-ES, Inc., commented, "We are pleased that the Department of Energy selected our Company to perform this needed work. The DOE and power producers have confidence in our reputation and proven abilities to develop innovative solutions for reducing emissions and meeting environmental standards and in going the next step in providing the technology commercially. The political momentum for enacting carbon dioxide regulations at the state and national levels is rapidly growing, and technologies need to be developed that are going to meet the requirements in a cost-effective way."

The project is expected to start by October 1, 2008 and last for three years. During that time, ADA-ES will be managing a team of technical experts and will be performing testing at several of the power producers on the team.

About ADA-ES

ADA-ES is a leader in clean coal technology and the associated specialty chemicals. The Company develops and implements proprietary environmental technology and specialty chemicals that enable coal-fueled power plants to enhance existing air pollution control equipment, maximize capacity and improve operating efficiencies. Through its largest and fastest-growing segment, Mercury Emission Control, ADA-ES supplies activated carbon injection systems, activated carbon, mercury measurement instrumentation, and related services. To meet the needs of the power industry for mercury control, the Company is developing state-of-the-art facilities to produce activated carbon (AC) with the first plant projected to come on-line in 2010. Additionally, the Company is developing technologies for power plants to address issues related to the emissions of carbon dioxide.

This press release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, which provides a "safe harbor" for such statements in certain circumstances. The forward-looking statements included in this release include statements regarding political momentum for carbon dioxide control legislation, project timing and timing of the Company's new AC manufacturing facility. These statements are based on current expectations, estimates, projections, beliefs and assumptions of our management. Such statements involve significant risks and uncertainties. Actual events or results could differ materially from those discussed in the forward-looking statements as a result of various factors, including but not limited to, availability of financing and an acceptable site for and changes in the costs and timing of construction of the planned AC facility; availability of raw materials and treatment and storage facilities; upcoming elections and political changes; changes in laws or regulations; changing prices, economic conditions and market demand; our ability to secure necessary permits and other approvals; operational difficulties; successful negotiation of a site purchase agreement; availability of skilled personnel and other factors discussed in greater detail in our filings with the Securities and Exchange Commission (SEC). You are cautioned not to place undue reliance on our forward-looking statements and to consult filings we make with the SEC for additional risks and uncertainties that may apply to our business and the ownership of our securities. Our forward-looking statements are presented as of the date made, and we disclaim any duty to update such statements unless required by law to do so.