SOURCE: O2Diesel Corporation

November 15, 2006 10:31 ET

Chicago Students Breathe Easier on School Buses Fueled With Cleaner-Burning O2Diesel™

New Program Launched Featuring the Proprietary Ethanol-Diesel Fuel Blend

NEWARK, DE -- (MARKET WIRE) -- November 15, 2006 -- O2Diesel Corporation (AMEX: OTD), today announced that the nation's third largest school district has taken a major step forward in clearing the air for future generations. At a news conference held yesterday at the Louisa May Alcott School in Chicago's Lakeview neighborhood, Chicago Public Schools announced the launch of a pilot program to replace the traditional diesel fuel used to power school buses with O2Diesel™, a cleaner-burning fuel blend of ethanol-diesel. In conjunction with Falcon Transportation, Inc., the program is initially being tested in 27 school buses owned by Falcon serving 18 Chicago Public Schools.

At the opening of the news conference, Arne Duncan, CEO of Chicago Public Schools, said, "Providing safe and healthy passage to school is critical to our mission of giving children the tools they need to learn and thrive. Our school system is at the forefront of environmental issues -- from recycling to buying green classroom products to the greening of our school bus fleet; the ethanol-diesel program complements our recent efforts to retrofit 600 school buses."

"The environmental benefits of ethanol-diesel fuel over traditional diesel fuel are significant," said Sadhu Johnston, Commissioner of the Chicago Department of Environment. "Ethanol captures and delivers renewable energy, reduces greenhouse gas and reduces harmful school bus emissions."

"This is not just a solution to improve the environment, it is a health issue, particularly for children," said Terry Mason, Commissioner of the Chicago Department of Health. Mason added that asthma is the leading cause of missed school days and hospitalizations for school-aged children due to a chronic illness. Approximately 20 million Americans suffer from asthma; nine million are under the age of 18.

"This is an important program that recognizes the benefits of O2Diesel™ as a valuable part of the solution to improving the air quality for our children and all inhabitants of congested metro areas," said Alan Rae, CEO of O2Diesel Corp. "Chicago is already recognized as one of the 'greenest' cities in the U.S. and we are very happy to be making a contribution towards enhancing that position."

Studies have documented that long-term exposure to diesel exhaust can have serious health effects. The particulate matter in diesel exhaust has been shown to impair the lungs and can aggravate diseases like emphysema and bronchitis. Children are more susceptible to the harmful effects of air pollution; they breathe faster and their lungs are less able to fight off these pollutants.

The introduction of this cost-effective, ethanol-diesel fuel in school buses is part of the CityHome Program™, a national air quality initiative that enables municipal transit systems and school bus operators to make the switch to O2Diesel at no additional cost. The costs of conversion are shared by corporate sponsors. CityHome was launched in 2005 with the StarTran System in Lincoln, Neb. with the conversion of 67 diesel-powered transit buses to O2Diesel. In September, the city of Spearfish, South Dakota became the first school district to convert its entire fleet to O2Diesel.

The CityHome school bus initiative is intended to expand quickly in the Midwest with several pilot programs through the joint efforts of O2 Diesel and the Ethanol Promotion and Information Council (EPIC).

"Switching to a cleaner-burning ethanol-diesel blend is a commitment to safeguarding our children's health and the health of future generations," said Tom Slunecka, executive director of EPIC.

A 2005 study on a fleet of 75 transit buses in Johnson County, Kansas predicted emissions reductions of six tons per year by switching to O2Diesel. O2Diesel is available today to meet the clean air challenges of future generations.

In partnership with the National Arbor Day Foundation, a tree will be planted in Illinois for each child who rides these school buses. Additional supporters include Prime BioSolutions, KL Process Design Group (www.klprocess.com), and JCDecaux (www.jcdecauxna.com).

For more information on the CityHome program, visit www.cityhome.info.

For more information on EPIC, visit www.drivingethanol.org.

About O2 Diesel

O2Diesel is a pioneer in the commercial development of a cleaner-burning diesel fuel alternative that provides exceptional performance and environmental qualities for centrally fueled fleets and off-road equipment of all kinds. Engineered and designed for universal application, O2Diesel™ is an ethanol-diesel blend that substantially reduces harmful emissions without sacrificing power and performance. Extensive independent and government-recognized laboratory and in-use field tests have demonstrated the effectiveness of O2Diesel™ -- the introduction of this cost-effective, cleaner-burning diesel fuel is now underway in the United States and other global markets. For more information please refer to www.o2diesel.com.

Forward Looking Statements

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Statements in this press release regarding O2Diesel Corporation's business which are not historical facts are 'forward-looking statements' that involve risks and uncertainties. Forward-looking statements are subject to a variety of risks and uncertainties which could cause actual events or results to differ from those reflected in the forward-looking statements, including, without limitation, the failure to obtain adequate financing on a timely basis and other risks and uncertainties. Actual results could differ materially from those projected in the forward-looking statements, as a result of either the matters set forth or incorporated in this report generally or certain economic and business factors, some of which may be beyond the control of O2Diesel. These factors include adverse economic conditions, entry of new and stronger competitors, inadequate capital, unexpected costs, failure to gain product approval in the United States or foreign countries for the commercialization and distribution of our products, failure to capitalize upon access to new markets and failure in obtaining the quality and quantity of ethanol necessary to produce our product at competitive prices. O2Diesel disclaims any obligation subsequently to revise any forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events. "O2Diesel" and "CityHome" are trademarks of O2Diesel Corporation.

Contact Information

  • Contacts:
    O2Diesel Corporation
    Alan Rae
    +1 (302) 266 6000

    Investors Contact:
    Alliance Advisors, LLC
    Mark McPartland
    +1 (914) 244-0062

    EPIC contact:
    Joanna Schroeder APR,
    Director of Communications, EPIC
    636-399-4381-mobile
    +1 (402) 932-0567
    Email Contact