Kelso Technologies Inc.

Kelso Technologies Inc.
Union Tank Car Company

January 10, 2005 09:30 ET

UTLX and Kelso Technologies Enter Joint Agreement to Produce Pressure Relief Valves


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: KELSO TECHNOLOGIES INC.

TSX VENTURE SYMBOL: KLS

AND UNION TANK CAR COMPANY

JANUARY 10, 2005 - 09:30 ET

UTLX and Kelso Technologies Enter Joint Agreement to
Produce Pressure Relief Valves

CHICAGO, ILLINOIS--(CCNMatthews - Jan. 10, 2005) - Union Tank Car
Company and Kelso Technologies Inc. (TSX VENTURE:KLS) have entered into
a five-year Joint Marketing and Development Agreement to manufacture and
market Kelso's patented JS SRV line of pressure relief valves. The
Agreement encompasses all aspects of valve development and
manufacturing, as well as marketing, technical support, and service.

Union Tank Car will offer Kelso's externally sprung safety valves as
replacement valves on certain UTLX railroad tank cars, which are owned
by UTLX and leased to bulk liquid shippers. The valves will also be
offered as original equipment on new cars built by UTLX Manufacturing,
Inc. offered for lease or sale.

UTLX affiliate, McKenzie Valve and Machining Company will have the
exclusive manufacturing rights in the U.S., Canada, and Mexico for all
Kelso JS SRV pressure relief valves for sale to the North American rail
industry. These include Kelso's existing JS75 SRV and other valve
designs that may be developed. McKenzie will also assist Kelso in valve
development to ensure timely design-to-market cycles, manufacturing
ease, and quality control.

Kelso will be responsible for the marketing, sales and technical support
for after-sales service of its valves. Prospective customers will be
railcar maintenance and repair facilities, tank car owners and lessees,
as well as other manufacturers of tank cars.

"Kelso JS SRV pressure relief valves are well-suited for both hazardous
and non-hazardous product service and represent an alternative source of
supply for quality safety relief devices," explained UTLX President,
Frank Lester. "These valves will also be a good choice for UTLX
customers who ship products that require protective interior tank car
coatings. We always prefer to offer quality valves built by McKenzie."

"The adoption of our valve design by North America's largest leased tank
car fleet operator provides a major boost to the commercialization of
our 21st Century technology," said Stephen L. Grossman, President and
CEO of Kelso. "It also means that we will be able to provide value and
greater safety possibilities to transporters of bulk liquids."

Union Tank Car Company (www.utlx.com) is the leading designer, builder,
and lessor of specialized railcars. With its Canadian affiliate, Procor
Limited, it owns a fleet of approximately 85,000 railcars. In addition
to manufacturing plants in East Chicago, IN and Sheldon, TX, the
Chicago-based company operates a North American network of repair shops,
coating shops, and On-Site® Repair locations. UTLX is a member of The
Marmon Group of companies, an international association of more than 100
companies that operate independently within diverse business sectors.
Collective revenues exceeded $5.5 billion in 2003.

McKenzie Valve & Machining Company (www.mckenzievalve.com) produces ball
valves, spring-operated safety valves, vacuum relief valves, heads for
pressure cars, and mirror-finish manway covers. The shop is
AAR-certified. Like UTLX, McKenzie is a member of The Marmon Group of
companies.

Kelso Technologies Inc. (www.kelsotech.com) is a public company which
trades on the TSX Venture Exchange in Canada under the symbol KLS.
Headquartered in Vancouver, BC, Kelso Technologies' mandate is to
develop industrial technology including its JS SRV valve technology,
which is patented in major countries around the world. During 2004, the
AAR certified Kelso's first application for the North American railroad
tank car market, the external JS75 SRV pressure relief valve.

-30-

Contact Information