SOURCE: O2Diesel Corporation

September 21, 2006 11:13 ET

O2Diesel Officially Launches Its School Bus Program in South Dakota With the Announcement of New Partnerships With KL Process and the National Arbor Day Foundation

NEWARK, DE -- (MARKET WIRE) -- September 21, 2006 -- O2Diesel Corporation (AMEX: OTD), a pioneer in the development of cost-effective, cleaner-burning, diesel fuels for centrally fueled fleets of all types, today announced that at a press conference held in Spearfish, SD, yesterday, it officially launched the CityHome School Bus program.

Last week the company announced the first school bus to run on O2Diesel™. Today the Spearfish School District, operated by Dakota Trailways became the first school bus fleet to convert to the company's clean burning Ethanol diesel fuel blend as part of the CityHome™ program.

The new program is intended to expand quickly in the Midwest with several new programs through the joint efforts of O2Diesel, the Ethanol Promotion and Information Council (EPIC) and several new sponsor partners such as KL Process Design Group.

"This is a significant step forward in reducing school bus pollution," said Joanna Schroeder, APR, Director of Communications for EPIC. "Riding a school bus every morning should not be a health hazard for our nation's children."

"As we can see from the local and National media coverage, this program is being taken seriously as a simple and easily implemented step towards substantially improving the air quality for the nation's students," said Alan Rae CEO of O2Diesel Corporation. "We believe that this is a program that should be adopted by all school districts with concerns over the health effects of diesel exhaust. It is simple to introduce; CityHome makes it cost neutral for the School district and the increasing use of renewable fuel is a valuable lesson for all of us."

"The Spearfish School District is pleased to partner with Dakota Trailways Bus Service to provide pupil transportation that brings a new meaning to being 'user friendly' through the use of O2Diesel™, which is designed to burn cleaner and be more environmentally friendly. We're pleased that Dakota Bus Service has taken this positive step, and are proud to be associated with such a forward-thinking business partner. The change is good for our students, and for the South Dakota economy through increased use of ethanol," commented David Peters, Superintendent, Spearfish School District.

"Using O2Diesel™ fuel affords many benefits to my community as well as for my business operation. For the children, it improves the air quality in and around the buses. For the community, using ethanol creates manufacturing jobs, supports the local farmer and the agricultural economy. For my operation, using O2Diesel™ fuel is worker friendly, improving their air quality in and around the service garage. Using ethanol is the right thing to do," said Mel Ladson, President of Dakota Trailways.

Another marketing initiative from CityHome was announced with the support of the National Arbor Day Foundation: a tree will be planted in South Dakota for each child who rides on a school bus using O2Diesel.

"The National Arbor Day Foundation is excited to collaborate with O2Diesel. The company's efforts to provide cleaner fuel options for vehicles is right in line with the Foundation's environmental mission. The trees planted through this partnership will also help absorb CO2 emissions, resulting in cleaner, healthier air," said Kevin Sander, Director of Corporate Partnerships, National Arbor Day Foundation.

Randy Kramer, head of KL Process & Design, commented, "KL Process Design Group and Patriot Motor Fuels are pleased to be a part of the CityHome vision of providing clean, renewable fuels to Dakota Trailways. With our background in ethanol production and future expansion to cellulose ethanol processing using forest thinnings in the Black Hills, KL Process Design Group is poised to provide sustainable, long term supplies through the CityHome renewable fuels program. We applaud Dakota Trailways for their courage to move to a renewable source. Their pioneering system fits well with the CityHome program goals."

About O2Diesel: The Company and Its Fuel Technology

O2Diesel Corporation (AMEX: OTD) and its U.S. subsidiary O2Diesel, Inc., 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 price. 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

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

    Alliance Advisors, LLC
    Mark McPartland
    +1 (910) 221-1827