PetroAlgae Announces Strategic Partnership With Foster Wheeler to Create End-to-End Biomass-to-Fuel Solutions

MELBOURNE, Florida, December 10 - PetroAlgae Inc. (OTC Bulletin Board: PALG) announced today that it has
signed a Memorandum of Understanding with Foster Wheeler AG's (Nasdaq: FWLT)
Global Engineering and Construction Group for engineering services to be
performed in conjunction with PetroAlgae's micro-crop technology, which
allows for the production of dry biomass at an unprecedented scale.

PetroAlgae intends to work with Foster Wheeler to develop commercial
solutions that will allow existing oil refineries to convert micro-crop
biomass into fuels that are functionally compatible with petroleum-based
fuels in the current market. For refineries, the solutions are expected to
provide strong economics from the large-scale processing of PetroAlgae's
micro-crop biomass into green fuels. The two firms will create end-to-end
market solutions for the large-scale production of green gasoline, diesel,
jet fuel and specialty chemicals.

"Foster Wheeler's engineering and refining expertise coupled with our
commercial scale biomass technology will provide an opportunity to create
end-to-end market solutions for optimizing the conversion of large quantities
of biomass into large quantities of green fuels," said Dr. John Scott,
chairman of PetroAlgae. "Through this partnership, we expect to further
optimize our fuel and petroleum replacement output, more rapidly integrate
with current refinery systems and realize the benefit of Foster Wheeler's
ability to bring innovation to the process. These solutions offer the promise
of transforming sunlight into fuels, thereby providing countries around the
world with yet another option on the path to sustainable and clean energy
independence."

"Our company has long been a global leader in engineering solutions to
some of the world's major energy problems," said Umberto della Sala,
president and chief operating officer of Foster Wheeler AG. "We believe we
can play a significant role in helping refineries realize the potential of
processing biomass into green fuels. We are excited about the opportunity to
work with a dynamic organization like PetroAlgae and having the opportunity
to develop biomass conversion solutions that will help the refinery industry
realize the potential of green fuels."

About PetroAlgae Inc.

PetroAlgae Inc. (OTCBB: PALG) is a leading alternative energy company
that licenses a commercial micro-crop technology system to produce clean fuel
and food in an environmentally sustainable manner. Through a modular,
flexible design construction, PetroAlgae enables a near-continuous growing
and harvesting process of a wide variety of micro-crops suited to local
climates, ensuring maximum growth rates. PetroAlgae's globally scalable
system produces high-value protein as well as a cost-effective alternative to
fossil fuels, while absorbing carbon dioxide from greenhouse gas emissions.
The Florida-based company expects to establish first-mover advantage in the
biofuels industry and offers a path to sustainable and clean energy
independence while promoting local job growth.

For further information on PetroAlgae, please visit www.petroalgae.com.

About Foster Wheeler AG

Foster Wheeler AG is a global engineering and construction contractor and
power equipment supplier delivering technically advanced, reliable facilities
and equipment. The company employs over 14,000 talented professionals with
specialized expertise dedicated to serving its clients through one of its two
primary business groups. The company's Global Engineering and Construction
Group designs and constructs leading-edge processing facilities for the
upstream oil and gas, LNG and gas-to-liquids, refining, chemicals and
petrochemicals, power, environmental, pharmaceuticals, biotechnology and
healthcare industries. The company's Global Power Group is a world leader in
combustion and steam generation technology that designs, manufactures and
erects steam generating and auxiliary equipment for power stations and
industrial facilities and also provides a wide range of aftermarket services.
The company is based in Zug, Switzerland, and its operational headquarters
are in Clinton, New Jersey, USA.

For more information about Foster Wheeler, please visit their Web site at
www.fwc.com.

Forward Looking Statements: This news release may contain certain
forward-looking statements. Forward-looking statements are based on current
expectations and assumptions and are inherently subject to risks and
uncertainties, some of which cannot be predicted or quantified, and many of
which are beyond the Company's control. Actual results could differ
materially from these forward-looking statements as a result of a number of
factors, including the uncertainty of the launch of our commercialization
strategy, potential delays and/or other factors that may negatively impact
the Company's ability to progress with its strategic alliance with Foster
Wheeler AG, the availability of additional capital to support the Company's
operations, particularly the launch of its commercialization strategy, as
well as other risks detailed in the Company's filings with the Securities and
Exchange Commission (the "SEC"). Given these risks and uncertainties,
investors are cautioned not to place undue reliance on such forward-looking
statements and no assurances can be given that such statements will be
achieved. The Company and all affiliated parties do not assume any duty to
publicly update or revise the material contained herein.

Media, Katie Hays of Weber Shandwick Seattle, +1-425-452-5428, khays at webershandwick.com, or Investors, Sean Li of Investor Relations International, +1-818-382-9700, sli at irintl.com, both for PetroAlgae Inc.