Diversified Industries Ltd.

Diversified Industries Ltd.

February 19, 2008 13:56 ET

Diversified/CFR Chemicals Continues Record Sales for Dec/Jan 08

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 19, 2008) - Diversified Industries Ltd. ("Diversified") (TSX VENTURE:DVS) is pleased to announce that CFR Chemicals Inc. ("CFR") of which it owns 50%, continues to experience record growth in sales in Q2 of the current fiscal period. CFR's revenues for the first two months of Q2 are up 254% from the same period last year ($5,590,000 for Dec/Jan 08 compared to $2,197,140 for Dec/Jan 07).

In addition, the net income for these two months is up 535% over these same two months ($368,000 for Dec/Jan 08 compared to $68,694 for Dec/Jan 07). The company anticipates continued strong demand for its products and services and expects the second quarter to finish with record revenues and earnings.

Diversified and CFR President / CEO Darren Lamothe commented: DVS 6000 continues to generate considerable interest and its customer base continues to expand. It is expected that DVS 6000 and other proprietary products will be key to the Company maintaining stronger gross margins and earnings during all four quarters

CFR has recently installed 8 additional storage tanks totaling an additional 960,000 litres of chemical storage to meet growing demand. It is expected that at least 4 of the tanks will be customer leased and the remainder will be used to store various specialty chemical blends.

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. 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. Total chemical storage now exceeds 7,500,000 litres.

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

Forward Looking Statements

Certain statements contained in this news release, including statements which may contain words such as "could", "should", "expect", "anticipate"," believe", "will", and similar expressions and statements relating to matters that are not historical facts are forward looking statements. Such forward looking statements involve known and unknown risks and uncertainties which may cause the actual results, performances or achievements of Diversified to be materially different from any future results, performances or achievements expressed or implied by such forward looking statements.

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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