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Home About Us Stock Information Market Information  Newsletters Press Releases Announcements Email	PRESS RELEASE : July 11, 2003 STARTEC ENERGY ADDRESSES RECENT IRS SYNTHETIC FUEL RULING COLUMBUS, Ohio - July 11, 2003 - Startec Energy, Inc. (Startec), a Startec Inc. company, announced that Startec, and the limited liability company in which it is a member, received notice that the Private Letter Ruling (PLR) application regarding the Section 29 Tax Credit SynFuel Processing System has been placed on hold by the Internal Revenue Service. The IRS ruling follows the agency's recent announcement that it is temporarily placing all PLR applications on hold as it reviews its industry-wide policies surrounding the production of solid synthetic fuels (synfuel) and subsequent tax credits. Startec is not familiar with the specific aspects of the IRS review and therefore cannot predict the outcome of the review or the timing of any eventual IRS actions. The application was filed following shipment of the Section 29 Tax Credit SynFuel Processing System, known as the "I System," to a site adjacent to the Big Sandy River in Kentucky, according to Don Cullen, President and CEO, Startec. This shipment followed an additional announcement that Startec had reached an agreement with Komar Industries concerning exchange of ownership in the three Section 29 Tax Credit SynFuel Processing Systems owned by the limited liability companies. Startec Energy also previously announced that it has signed an agreement with I Synfuels, L.L.C., a Delaware limited liability company, which will arrange the monetization and will operate the I system that was acquired by Startec in the exchange. The eventual closing of the sale is subject to the following conditions precedent among others, many of which are beyond the control of Startec, including: Satisfaction of buyer's financing conditions;  Relocation of the fuel processing system;  Placement of the fuel processing system into production and the achievement of certain production minimums; and  Receipt of a favorable IRS private letter ruling (PLR). If established, an income stream is expected to continue through the year 2007, depending upon production milestones and other criteria. For additional information email the company at startecenergy@aol.com.