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EXHIBIT 99.1


                 KFx Receives Private Equity Financing Placement

                                             CONTACT: Ted Venners - 303-293-2992

Denver, CO, April 30, 2002 - KFx Inc. (AMEX:KFX) today received an additional $6
million in equity financing from the same investor group that provided $5
million last month. The $11 million aggregate amount was raised through the sale
of common stock of KFx at $2.50 per share and warrants which are exercisable at
$2.75 per share, on similar terms to the prior financing. The investor group has
an option through July 31, 2002 to invest an additional $9 million, if needed by
KFx, on similar terms.

Approximately $3.8 million will be used to repurchase the preferred stock in
Pegasus Technologies, Inc., KFx's subsidiary, which KFx sold to third parties in
2001 to finance its purchase of Pavilion's Power Optimization Segment.
Investment proceeds will also be used by Pegasus to hire additional sales and
product installation personnel to meet the order schedule of our customers.

Investment proceeds will also be used by KFx to fund permitting, engineering,
and the initial stage of construction of a new plant to produce commercial
quantities of K-Fuel Plus(TM). KFx is ordering long lead-time items for the
plant while it negotiates with interested joint venture partners to finance a
commercial-scale K-Fuel Plus(TM) plant.

The additional $9 million, if required, would be used to retire any outstanding
convertible debentures and to further fund the construction of the K-Fuel
Plus(TM) plant.

"This financing resolves several of our liquidity issues and gets us started on
the construction of the K-Fuel Plus(TM) plant," said Ted Venners, Chairman and
CEO of KFx. "With passage of the energy tax bill, KFx will be well positioned to
be the lowest cost solution for utilities while meeting the proposed
environmental regulations," concluded Venners.

KFx provides total fuel solutions for the power industry. Its patented K-Fuel(R)
process converts low heating value coal into clean, high-energy fuel. The KFx
web site address is www.kfx.com. Pegasus Technologies, Inc., a majority-owned
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subsidiary of KFx, is the industry leader in neural network based smart
applications for the power generation market. The Pegasus suite of combustion
optimization applications reduces emissions and increases the efficiency of
fossil-fueled electric generating units. The Pegasus web site address is
www.pegasustec.com.
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The discussion above contains, in addition to historical information,
forward-looking statements that include various risks and uncertainties. Such
forward-looking statements include statements regarding the Company's
expectations. The Company's actual results may differ materially from those
anticipated in such statements. The Company's actual results may differ
materially from those anticipated in such statements. Factors that might cause
such a difference include matters discussed in "Business Risk Factors" at Item I
and in "Management's Discussion and Analysis of Financial Condition and Results
of Operations" at Item 7 of the Company's Annual Report on Form 10-K/A for the
year ended December 31, 2001 and in "Management's Discussion and Analysis of
Financial Condition and Results of Operations" at Part I, Item 2 of the
Company's Quarterly Report on Form 10-Q for the quarter ended September 30,
2001.