Diversified Industries Ltd.

Diversified Industries Ltd.

January 30, 2008 13:20 ET

Diversified/CFR Chemicals Announce 1st Quarter Results

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 30, 2008) - Diversified Industries Ltd. ("Diversified") (TSX VENTURE:DVS) is pleased to announce that CFR Chemicals Inc. ("CFR"), of which it owns 50%, has exceeded projected revenues and profits for the 1st quarter of the current fiscal period. CFR's revenues for the 1st quarter are $4.9 million, up 70% from the same period last year and the company is reporting a net before tax profit of $260,000 compared to a $208,000 loss from the same period last year. Included in these results are some significant one time costs relating to the acquisition of CFR by Diversified. These one time closing costs include legal, accounting and bank financing fees in both companies and total over $268,000.

Diversified is reporting a consolidated 1st Quarter loss of $135,157 or $0.0046 per share over this same period due in part to the one time closing costs resulting from the purchase of CFR, noted in the first paragraph. It is anticipated that moving forward the Corporation will be in a profitable position.

Diversified and CFR President/CEO Darren Lamothe commented: "We have been very busy over the past 3 to 4 months and we do not see any sign of our business slowing down. Our 1st Quarter sales were way up and it looks like we will have record sales for our 2nd Quarter as well. We have generated serious interest over the past 6 months in Kuwait, South America, domestically and in the US with Diversified's patent pending DVS 6000 chemical and we are very excited to see where it takes us!"

The Companies continue to explore new opportunities while remaining committed to core businesses. Further expansion is in progress at CFR's Kuusamo plant. Kuusamo's chemical storage is being further increased by 960,000 liters in an additional 8 storage tanks with expanded infrastructure added to support increased specialty chemical blending business including DVS 6000. Sales of DVS 6000, Diversified's proprietary hydrogen sulphide scavenger continue to grow and significant gains in market share over the next 12 to 24 months are anticipated.

CFR's Kuusamo facility is located 26 kilometres west of Red Deer, Alberta on a 22-acre parcel of industrial-zoned land purchased in March 2007. The Kuusamo facility has over 40 storage tanks with in excess of 7 million liters of bulk storage capacity for various chemicals. CFR has a unique advantage as the property is serviced by 2,900 feet of single track CN railway siding, upgraded to handle dangerous goods. In addition, two of CFR's satellite locations within the province also offer the distinctive benefit of rail car service to its customers.

CFR is a supplier of specialty chemical products primarily to the oil and gas industry. Additional services provided by CFR include custom blending, storage of chemical products and third party logistics. CFR's growth is generated from management's ability to capitalize on opportunities in the chemical market and to provide competitive advantages to its clients. An integral part of this strategy is an ongoing program in R & D of new and unique chemical products.

Diversified currently owns 50% of CFR Chemicals Inc. with the option to purchase the remaining 50%. For more information visit www.cfrchemicals.com.

On behalf of the Board of Directors:

Darren J. Lamothe, President/CEO

Statements made in this news release that relate to future plans, expectations, events or performances are forward-looking statements. Such statements involve risks and uncertainties and are based on current expectations. Consequently, actual results could differ materially from the expectations expressed in these forward-looking statements.

The TSX Venture Exchange has in no way passed upon the merits of the proposed acquisition and has neither approved nor disapproved the content of this press release.

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